It was late Thursday night April 6, 2017 when news flashed out that The Trump had ordered a cruise missile strike on Syria. Raytheon makes cruise missiles and they cost about a million a pop. So that was 59 million in U.S. dollars that would have to go to Raytheon to reimburse it for giving us another 59 missiles.
I suppose what made me think of Raytheon and the money involved was that in making plans for the strike Trump has as part of his war planning team the Steve Mnuchin, Secretary of the Treasurer, Wilbur Ross, the Commerce Secretary, and Gary Cohn, Director of the National Economic Council.
Gary is a former investment banker formerly the president and chief operating officer of Goldman Sachs; Wilbur is a banker known for his skill in dealing with companies in distress; and Steve is also a former (difficult to say former since they always return) member of Goldman Sachs who also is involved in dealing with failed banks. Now the only reason these men were there during some of the planning of the attack could not have been because of their expertise in foreign relations or military matters. They are money men who know how to make lots of money.
That naturally go me thinking “what is the money angle” involved in the Syrian strike. Raytheon, of course, was a blinking light telling me to go look at that stock. I knew it had jumped on the day following the raid that Friday when it opened at 154.62 which was about four points higher than it closed on Thursday at 150.46. So someone smart enough to buy 100,000 shares on Thursday near close could have sold right after the open and made a nice $400,000 profit.
To determine if the news had leaked out before the close on Thursday was pretty easy. Looking at a five-day chart showing the volume and price of stock.
On Monday RTN had a volume of 292,000, Tuesday about 210,000, Wednesday 286,000. The price ranged from a high on Monday of 152 with a close of 151.77; Tuesday 151.77 and close of 151.40; Wednesday 152.64 high and close of 149.95.
Thursday opened at 150 and at 3:45 it was at 150.5. The volume for the 15 minutes before 3:15 was 21,793; the 15 minutes before 3:30 27,411. These were about the average during the day. Then the volume for the 15 minutes before 3:45 was 139,617, and that and the 15 minutes just before closing pushed the daily volume to 695,000 three times as much during the rest of the week with the difference coming in the last 30 minutes.
Other charts show similar results. Yahoo historical quotes show Volume on Monday at 1.3 million; Tuesday at 1.4 million, Wednesday at 1.6 million, Thursday at 2.250 million. The close on Thursday at 150.75 and the open at 154.62.
The heavy buying which took place late in the day for Raytheon had to be the result of knowledge of an upcoming attack. The smart money got in late in the day and out within the first couple of hours the next day when the stock went to above 155. Some could say it was all one big coincidence or lucky guess. Boeing and Northrup Grumman’s stock volume fell from Wednesday to Thursday which makes the sudden jump in Raytheon volume that day even more suspicious.
I don’t have the means to figure out who made these trades or if they were made based on inside information about Trump’s plan for a strike. You might think these guys with their riches would not leak the information. Steve is worth 46 million, Wilbur 2.5 billion, and Gary between 250 and 300 million. But, even with all that dough you know deep down these money men are not going to pass up an opportunity to pick up some pocket change.
It would seem the SEC would be interested in taking a look at this. Now what do you think the chances of that happening with Jay Clayton a lawyer for Goldman Sachs and whose wife works there as the chairman. Jay’s net worth is 50 million. I’d have to think the chances were mighty slim.