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First and foremost I do not like this at all and I feel like this pseudo bailout stuff needs to stop. That being said when I looked at the Lockheed numbers I was honestly mind blown. The article stated
Lockheed Martin makes most of its revenue from federal contracts
I thought for sure there would have been sizeable international or non-defense revenue from Lockheed but that really is not the case and it essentially is like Lutnick said an arm of the U.S. Government. Instead of taking equity I feel like the simplest thing is to open up more competitions so that other companies join in and could thus drive down the price of the arms, weapons systems, etc. that we are getting from Lockheed.
92 sats \ 1 reply \ @siggy47 26 Aug
Is the US modelling itself after China? First Intel, now this?
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It is mind blowing to say the least. I was all for changing the grants into loans for CHIPS since I dont just wanna give Intel, who is struggling significantly in chip production, free money to waste. The stake was something that I mean I want to see the exit plan from the Admin of how they are going to unload the shares.
Defense contractors esp. are not struggling money wise at all right now. I dont understand why they would do this and it seems like they want to "pay" for munitions now with equity? At least to me that seems like it would only hurt the company both revenue and value wise?
I mean pretty soon at this rate we are going to hear them "buy" a stake in SpaceX....
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So much for “free markets”
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when they 'take an equity stake', are they buying shares on the open market ?
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