Boeing / SAAB team has been selected as winners of the US Air Force T-X competition. While important for Boeing, it is more so for SAAB, putting SAAB with the big boys in military aircraft manufacturing.
SAAB AB has already gone up by 8.5% since the win. Before this, SAAB was actually in decline, seeming in anticipation of a loss. Last year, SAAB traded to a high of 453kr, it closed on Friday at 447kr. It has a dividend of 1.3% and a P/E of 37. Despite its high P/E, I believe SAAB has a lot more to gain.
The Swedish Air Force is also in need of new trainers, and will probably buy this one.
Investor AB is an investment company which owns 30% of SAAB AB. While the stock is a small portion of its portfolio (3%), it has a dividend yield of 2.8% and a P/E of 14.8 and could be an alternative to investing directly in SAAB.
I have doubled my initial position and will probably triple it next week.
