The trader is always ready: companies, that will benefit the much from a US-North Korea conflict

Few hours divide us from the historic summit between the United States and North Korea. After months of threats and insults on both sides, Donald Trump and North Leader Kim Jong Un will meet in Singapore this morning at approximately 4:00 am local time to make a final attempt to smooth out relations with each other.

At the heart of any potential deal lies the definition of denuclearization. Pyongyang commented earlier that they would destroy their nuclear weapons only if Washington withdrew its 28,500 soldiers from South Korea - a bad prospect for Asian allies relying on US defense. Alternatively, failure to sign any pact would reinforce the US appetite for military action and strikes against the North - an equally bad situation for the region.

Both outcomes could jeopardize stability and put Asian countries into a defensive regime.

If negotiations collapse, it may signal to the States and North Korea that diplomacy as a strategy has failed, leaving only the military action on the table.

Failure to reach an agreement will return the military option as a priority for the State Administration to remove the threat from North Korea.

In this scenario, the US government will launch mass orders to companies in the defensive and military sectors of the country, which will be reflected in large rising movements.

The largest companies in this sector that would receive these contracts are:

1. Lockheed Martin Corporation (LMT.US)

2. Huntington Ingalls Industries (HII.US)

3. Elbit Systems (ESLT.US)

4. Curtiss - Wright Corporation (CW.US)

5. National Presto Industries (NPK.US)

6. Texton Incorporated (TXT.US)

7. Northrop Grumman Corporation (NOC.US)

8. TransDigm Group Incorporated (TDG.US)

9. Rockwell Collins Incorporated (COL.US)

10. L3 Technologies (LLL.US)

11. Raytheon Company (RTN.US)

12. General Dynamics Corporation (GD.US)

13. United Technologies Corporation (UTX.US)

14. The Boeing Company (BA.US)

15. Heico Corporation (HEI.US)

Priority for both sides in these negotiations is the peaceful solution, but a trader can never be too prepared.

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