Markwayne Mullin sees massive two-month return on super suspicious war stock trade

Before being named and confirmed Secretary of the Department of Homeland Security (DHS), Markwayne Mullin was a U.S. Senator sitting on the Armed Services Committee, and, in that capacity, he executed a highly suspicious war stock purchase in February.

Specifically, a March 2 filing revealed an investment worth up to $50,000 in a company called Carpenter Technology (NYSE: CRS) on February 4. Between the day of the purchase and press time on March 25, CRS stock rallied 19.53% from $334.19 to $399.47.

Such stock market performance indicates that Mullin might have made a profit of as much as $9,765 and that his position may be worth $59.765 in total.

Carpenter Technology is a company focused on producing high-performance alloys used in various military equipment, including armored vehicles, missiles, aircraft, and helicopters.

Why Markwayne Mullin’s CRS stock trade is suspicious

Given the timing of the trade, the company’s business, Mullin’s Senate Committee assignments, and the fact that the U.S. initiated a war against Iran mere weeks after the purchase, the stock market activity regarding CRS shares has been raising eyebrows since it was first unveiled.

The Carpenter Technology investment is also interesting, as, despite being part of the wider military-industrial complex, the company is less visible in the supply chain and has, unlike many of the most prominent names in the sector, managed a rally since early February.

Indeed, while war is generally considered bullish for the defense industry, almost every major company involved with the Armed Forces is, in fact, in the red since February 4.

Northrop Grumman (NYSE: NOC) declined 1.10% since the day, RTX Corporation (NYSE: RTX) 1.39%, Boeing (NYSE: BA) 16.75%, while Lockheed Martin (NYSE: LMT) is essentially flat as it rallied just 1.23%.

While there are multiple factors at play that could explain such performance, one major potential reason for the decline might be the highly visible and highly controversial losses of cutting-edge equipment. 

Carpenter Technologies, being less visible in the supply chain, is less liable to perceived weakness from events such as Iranian air defense successfully targeting an F-35 while still being the beneficiary of expanded military expenditure.

Featured image via Shutterstock