By now you’ve probably heard the news; The Pentagon’s Defense Intelligence Agency thinks “with moderate confidence” that North Korea has developed a nuclear weapon capable of being delivered on a ballistic missile. Good news, though: The DIA thinks such a weapon would have “low reliability.”
If you’re like me, “low reliability” doesn’t exactly elicit feelings of confidence. I mean, how accurate do you need to be to do damage with a nuke? Apparently, South Korea feels the same, as it intends to spend $1.6 billion to purchase attack helicopters from Boeing (NYSE:BA ) equivalent to 30 helicopters at an estimated $52 million base price. South Korea also wants to purchase 60 fighter jets, all for the express purpose of countering North Korea’s threats. Obviously, this is good news for defense contractors, and their investors.