General Dynamics: Still Too Expensive? (at Motley Fool)

By Rich Smith (TMFDitty) July 25, 2008 Comments (0) After charging ahead 7% in response to a bumper crop of profits Wednesday, shares of defense contractor General Dynamics (NYSE: GD) beat a hasty retreat yesterday and left nearly half of their gains upon a battlefield littered with the corpses of several NYSE comrades. Should Foolish investors view the pullback as a chance to rifle through the bodies for loose change and cheap shares? That's what we're here to find out. Despite the post-earnings bump, we're still looking at a stock priced 4% cheaper than when I warned against buying it three months ago. Yet by all indications, General Dynamics is firing on all cylinders and even better positioned at the end of Q2, than it was at the end of Q1: Sales are up 11% for the quarter and for the first half of this year. Profits rose... [read full story]