As more bombs fall, defense stocks rise: Homeland security firms also see 9/11 effect.

Investment News, May, 2002 by Benjamin, Jeff

When bombs started falling on Afghanistan, the stocks of some of America's defense contractors started rising. The war, which has showcased a growing array of high-tech weapons, from pilotless drones to laser-guided munitions, has sent the stocks of some defense contractors and companies connected to homeland security on a roller coaster ride.

Since the Sept. 11 terrorist attacks on the World Trade Center and the Pentagon, many defense-related stocks have spiked in price and then receded. But the Bush administration's latest budget proposal -- allocating an average of $400 billion annually to the Department of Defense through 2007 -- could signal the start of a bullish run for certain pure-play defense contractor stocks. "I certainly think...

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