WATCH OUT! The sequester is going to CRUSH MSI! Governent spending is like 100% of PROFITS!!
Next is Harris Corp (HRS), which plummeted after the closing bell yesterday, saying it's hurting from the sequester. Harris makes wireless network transmission equipment. The company says it's being forced to lay off workers and cut expenses because key orders have been pushed back by the spending cuts. Harris has really been left behind in this year's market boom. At last check it was down more than 7% ahead of the bell.
Well your trade was spot on but not your reasoning as the sequester didn't have anything to do with it per the report. But watch out from here, hotbeat9 may be a contrarian/short squeeze indicator - lol.
Harris: Defense plus its own company-specific issue (pgh 2), MSI is homeland security and public safety:
" The reduction in budget spending that began last month has resulted in delays in tactical radio procurements. This has in turn raised concerns that major tactical radio orders from international markets will also be delayed to later this fiscal or early next fiscal.
At the same time, demand for the high-margin Integrated Network Solutions products were weaker than expected due to a delay in the Healthcare software release and poor performance by the CapRock Communications division."