The Rising Influence of Rising Affluence

[DewDiligence]

I’m somewhat concerned about CUB’s exposure to tightening of the US defense budget, but not unduly so. The bulk of CUB’s defense revenue comes from training and other services, which are much less likely to be cut than big-ticket weapons programs. Still, the fear of DoD cutbacks has clearly been weighing on the share price to some degree.

CUB’s transit segment, which comprises 30% of sales and almost 50% of operating income (#msg-62923285), is not affected, of course.

It's an intriguing, under-the-radar company.

Indeed! It’s hard to image a company of CUB’s size keeping a lower profile.