Hah, this reminded me that Dave Portnoy bought $500k of Rheinmetall stock about a month ago. He was copying the trade of a congresswoman who happens to be on the house subcommittee of military construction. Hard to imagine her trade wasn't related to this news
Rheinmetall's stock value looks like it's down 6% in the last month, I doubt this news will do much to it. Her trade was probably related to Rheinmetall being one of the world's biggest weapons manufacturers and well positioned when Germany and other European countries are putting a lot of money into their military spending.
Rheinmetall's stock's development during the last five years closely matches that of Saab, another big European weapons manufacturer. You don't have to be a political insider to guess that the stock will increase in value.
>You don't have to be a political insider to guess that the stock will increase in value.
having non public information about a company that is also doing well publically is still an effective trading strategy. the value of a company like Rheinmetall is the sum of it's sources of profit.
Of course, but that buy isn't necessarily an indication that she had insider knowledge about this deal. These kind of deals happens all the time, and this particular one hasn't moved the stock value enough to make insider trading worth it or even to make the accusation.
That stock is slightly down over last month even with this press release 5 days ago, so the larger investment community seems less than sold on this news...
One wonders if people on that committe would naturally be more inclined to trade in the defense industry; like how people on HN seem to have a lot of SV tech investments.
People tend to overestimate the profitability of defense contractors. Operating in a heavily boom-bust market, with high capital expenditures and high operating costs (the entire supply chain and final manufacturing is done almost exclusively in high cost-of-living western countries), and dealing with massive quantities of politics and regulation eats away at those margins.
And Rheinmetall is in Europe, not America, where all of these things are 100x more true.
https://x.com/stoolpresidente/status/1795810560677749078