City Financial's Dawes: Why I am buying cyber security stocks

Diplomatic and territorial conflicts have been rising but defence stocks remain strangely overlooked. City Financial's Benjamin Dawes explains why cyber security and homeland defence companies are worth a punt.

Surveillance and security Often, the segments of the market that provide the most reward are those that have been neglected or written off. Spending cuts made by both the US Department of Defense and the UK Ministry of Defence following the withdrawal of troops from Iraq and Afghanistan have hurt expectations for growth in the sector. But as only 40% of revenues taken by defence companies relates to equipment budgets, there are a host of companies that remain favourably positioned and valued. Examples of such companies include: Ultra Electronics, which commands a strong position...