"Strong the Force is with
Boeing (NYSE: BA). Mmm, yes, strong!"
Settle down, Yoda. Remember the blood pressure -- you're
no spring chicken anymore. I suppose you're referring to
Boeing's new mobile ground laser? The so-called "High Energy
Laser Technology Demonstrator?"
"HEL! Yes! Crush the Empire's AT-ATs, we will!"
Well, I don't know about that ... HEL is still a work in
progress. Mounted on a "Heavy Expanded Mobility Tactical
Truck," Boeing's HEL isn't quite Star Wars material yet. But
it does aim to deliver "speed-of-light, ultra-precision
capability" to the U.S. Army. And completion of a "critical
design review" this past summer suggests Boeing may soon add
another arrow in its laser quiver, currently stuffed
with:
Airborne Laser-- an aerial system tasked with
destroying enemy ballistic missiles in-flight, being built
by Boeing and subcontractors
Lockheed Martin (NYSE: LMT),
Raytheon (NYSE: RTN), and
Northrop Grumman (NYSE: NOC)
Advanced Tactical Laser-- the air-to-ground weapon with
which Boeing successfully burned a hole in the fender of a
hapless automobile a few weeks back
The Free Electron Laser, marketed as a cruise missile
defense system for the Navy
The
Laser Avengeranti-aircraft system
and last but not least, the Tactical Relay Mirror
System -- Boeing's solution to the "line of site" problem,
which gives a whole new meaning to the game of "laser
tag"
Across the spectrum, we see Boeing developing a whole new
way of waging war -- and perhaps, of preventing it. I mean
who's going to lob missiles at the U.S. Army if they're just
going to get shot down? How do you convince a soldier to hop
in a tank and face a foe armed with an invisible raygun that
could make your munitions pop off without warning? This
technology really
doeshave the potential to achieve "peace through
strength."
Okay, it's gee whiz technology, but what's it mean
for investors?
First and most obviously, continued progress on the
technological front should up Boeing's chances of winning
additional government funding for these laser initiatives.
Farther down the road, proven laser weapons could mean
beaucoup revenues for whole new divisions at Boeing.
Of course, the better way to play this trend might be to
ride on Boeing's coattails. While lasers have the potential
to keep revenues flowing at Boeing, I'm not sure they can
move the needle on this company's already-$35 billion market
cap. Better bets might lay in the stocks of smaller
laser-tech companies whose lasers serve more industrial
purposes. Companies like
Rofin-Sinar (Nasdaq: RSTI),
IPG Photonics (Nasdaq: IPGP), or
II-VI (Nasdaq: IIVI) would fit the bill.
Because the smaller the market cap, the
bigger the potential.
This article was originally published as
Boeing Builds a Laser Tankon
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