The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is in the red today.
Meanwhile, the company’s founder and CEO, Dr Ben Greene, has reportedly made note of overlooked advantages of the newly formed AUKUS pact.
At the time of writing, the Electro Optic share price is trading at $3.42, 0.29% lower than its previous close.
That’s a better performance than the broader market. Right now, the S&P/ASX 200 Index (ASX: XJO) is down a massive 2.2% while the All Ordinaries Index (ASX: XAO) has fallen 2%.
Let’s take a closer look at the comments attributed to the communication, defence, and space technology company’s boss.
A quick refresher
Australia, the United States, and the United Kingdom recently announced a new security pact between the 3 nations. The pact will see them jointly patrolling the Indo-Pacific region.
The nations announced the pact on 16 September. At the time, ABC News reported the deal would see the trio bolstering Australia’s defence capabilities.
The headline news included a fleet of nuclear-powered submarines. The submarines will join Australia’s defence arrangements, courtesy of the alliance.
Electro Optic CEO bullish on AUKUS pact
The Electro Optic share price is slipping today amid reports the company’s leader is bullish on the benefits of the AUKUS alliance.
According to a report in The Australian, the veteran CEO said most people were focusing on Australia’s plan for nuclear-powered submarines.
However, the pact would also boost Australia’s defence exports and its strategic positioning.
Greene reportedly made the comments recently at a celebration of the anniversary of the ANZUS treaty. The Australian quoted him as saying:
There is a significant growth element for Australian defence industry where they have the tech base to be able to contribute…
The Australian defence industry ecosystem is on the small side but has wonderful technology. This is an opportunity for some companies to be given growth opportunities so they can achieve much greater levels of scale and revenue.
Greene also said the pact would create opportunities for smaller defence companies to grow at never-before-seen speed, noting he believed the next military frontier would be space:
There will be a huge emphasis in acceleration in the intelligent use of space to make more cost-effective defence programs on the ground and in the air.
Electro Optic share price snapshot
Today’s slight dip has worsened the company’s unfortunate year on the ASX.
Right now, the Electro Optic share price is trading for 42% less than it was at the start of 2021. It has also fallen 36% since this time last year.
The post Electro Optic Systems (ASX:EOS) share price dips as CEO spruiks AUKUS appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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