mission payload module non-lethal weapon syste, page-17

Hi BRR

Excellent post (again). I think your assessment of how the MPM may unravel and be apportioned over the next few years is spot-on.

I also absolutely agree with your last bit incorporating LTI's PE ratios. This is not an academic stunt - this is how the market (after contracts are in with MST's name on them) is going to HAVE to revalue this stock in the near future.

It is important to appreciate that the formal PE ratios 17/33 for defence industry stocks are based on an average of about 24 or so current defence companies.

As I have previously noted, I believe Lee's 'razor razor blade' model i.e we sell the hardware AND the stacked round ammo will actually mean the traditional market PE ratios of 17/33 for defence stock predictions may need to be ...er...adjusted for what will be a special case of MST itself. Put another way, the 'scary part' is that MST might be expected to be at the better end of those averages, because it is not currently normal for the 'same' company to produce pretty much the whole package like MST will.

Whew - a bit more patience .... and then hopefully whammo. Good luck all.