Techquity
Technology Investor, Fundamental Research
Broadcom, Uber, Mastercard and Rheinmetall could be great buys today. x.com x.com x.com x.comÂ
Rheinmetall is a sovereignty trade, not the cyclical defense stock the market still models. Germany is rebuilding 80 years of atrophied defense capacity in a decade. The F-126 frigate contract is not a one-off but the opening bid on a $100B+ European rearmament supercycle. x.comÂ
Rheinmetall does not deserve a P/E of 100, since no German company ever does. Its shares fell sharply after reports Germany may cancel the F126 frigate program, on which Rheinmetall was expected to be lead contractor, raising questions about its naval expansion, per @wallstengine. x.comÂ
Rheinmetall's growth isn't limited to European defense: Kuwait is buying its MASS decoy launchers for the first time, a Middle East order. x.comÂ
Rheinmetall may have become a value trap. Its CEO tries everything to lift the stock and analysts keep raising price targets, yet shares still don't move and trade below the level of its big capital markets day, a question Bernstein's shift in framing also raises. x.comÂ