LMT engages in the research, design, development, manufacture and integration of advanced technology products and services ranging from aircraft, spacecraft and launch vehicles to missiles, electronics, information systems and energy management. For the FY ended 12/00, net sales fell 1%to $25.33B. Net loss before acct. change and extra. item totalled $424M, vs. an income of $737M. Results reflect lower Aeronautical Systems sales, and non-recurring losses.

February 4, 2001

Lockheed Martin Corporation builds a wide variety of aerospace products including missiles, aerospace electronics, commercial and government satellites, and tactical aircraft. The company also offers aeronautical research and development. Shares of LMT had a nice run last year after hitting a 52-week low of $16.50 on March 15th. The stock traded to a 52-week high of $37.58 on October 23rd, representing a 127% gain in just over six months. Since then, LMT has been consolidating in the $30-$35 range. On Thursday, the stock broke out of its inverse head and shoulders formation on 2 times average daily volume. There was solid follow-through on Friday as the stock traded to an intra-day high of $37.50 on heavy volume of 2.57 million shares. We believe that LMT has strong momentum that should be able to push the stock higher. From a technical perspective, support is the 5-dma at $35.42 with additional support at $34.47, the 10-dma. There is resistance at the 52-week high of $37.58, and then the $40 mark. Traders may consider entry points on a bounce off of $35.42 or a breakout above $37.58 on volume greater than 700,000 shares by midday. We plan to set stops at $33 as downside protection.

Picked on February 4th @ $36.40
Change since picked 0.00
Stop Loss @ $33.00

February 8, 2001

Lockheed Martin is regaining its momentum after two days of weakness and a test of support at the 10-dma. On Thursday, shares of LMT traded to an intra-day high of $36.84 on news that Lockheed Martin Management & Data Systems, a unit of LMT, won a $60.2 million contract with the US Navy to develop its Tactical Tomahawk Weapons Control System. LMT has broken its losing streak, but it may need heavier volume to move above the February 2nd intra-day high of $37.50. We believe it will, though, because both the MACD and On-Balance Volume are in a solid uptrend. For now, LMT has support at Tuesday’s intra-day low of $35.90, with additional support at the 10-dma, now up to $35.07. Resistance is holding steady at Monday’s intra-day high of $36.90 and then the 52-week high of $37.58. A bounce off of $35.90 or a move above $36.90 on volume greater than 700,000 shares may provide possible entry points. Our stops remain at $33.00 to protect against a possible trend reversal.

Picked on February 4th @ $36.40
Change since picked +0.23
Stop Loss @ $33.00

February 6, 2001

Lockheed Martin Corporation, a leading provider of advanced military aircraft and related technologies, has spent three sessions consolidating gains from last Thursday. On Tuesday, shares of LMT fell to an intra-day low of $35.90 just before the closing bell with 1.06 million shares changing hands. The stock has now made two lower highs on declining volume, so LMT could be losing its momentum. In the meantime, support is now at Monday’s intra-day low of $35.40 with stronger support at $35.07, the 10-dma. Resistance has fallen to Monday’s intra-day high of $36.90 and then the 52-week high of $37.58. Traders should be looking for a bounce off of $35.40 or a move above $36.90 on midday volume of at least 700,000 shares before starting new plays. We are keeping our stops at $33 as downside protection.

Picked on February 4th @ $36.40
Change since picked –0.46
Stop Loss @ $33.00