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 15, 2001

Lockheed Martin Corporation, a leading aerospace designer and manufacturer, attempted to break out of its trading range on Wednesday. Unfortunately, the stock was met with heavy resistance above $37.50. Shares of LMT tested the low end of its trading range on Thursday. The stock appears to be stuck in the $35-$37.50 range until option expiration on Friday due to the large open interest on the puts and calls at the $35 strike. For now, LMT has support at the 20-dma, currently at $35.05, with additional support at $34.50, Tuesday’s intra-day low. Resistance is holding steady at the February 9th intra-day high of $37.09 and then the 52-week high of $37.58. Look for a bounce off of $35.05 or a move above $37.09 on midday volume of at least 700,000 shares before opening new positions. We are leaving our stops at $33 as downside protection.

Picked on February 4th @ $36.40
Change since picked –0.71
Stop Loss @ $33.00

February 13, 2001

Lockheed Martin made a huge comeback on Tuesday after hitting an intra-day low of $34.40 early in the session. Shares of the aerospace designer finished the day at $36.91 on volume of 1.77 million shares. The volume is improving and the stock has tested support, so it could be ready to break out of its trading range. In the meantime, LMT has support at Monday’s intra-day high of $36.55 with stronger support at $36.02, the 10-dma. Resistance is unchanged at the February 9th intra-day high of $37.09 and then the 52-week high of $37.58. Traders may consider entry points on a bounce off of $36.50 or a move above $37.09 on volume greater than 700,000 shares by noon. Our stops remain at $33 as downside protection.

Picked on February 4th @ $36.40
Change since picked +0.51
Stop Loss @ $33.00

February 11, 2001

Lockheed Martin Corporation, a leading provider of aircraft, missiles, and telecommunications equipment, ran into some profit taking on Friday afternoon. Shares of LMT hit an intra-day high of $37.09 before pulling back to a close of $36.13 on volume of 952,000 shares. The stock has traded to three straight higher highs but the daily volume has been trending lower over the past seven sessions. LMT may be stuck in the $35-$37 until the volume picks up. In the meantime, support is the 10-dma at $35.82 with additional support at $35.11, Wednesday’s intra-day low. Resistance has moved up to Friday’s intra-day high of $37.09 and then the 52-week high of $37.58. Traders should be looking for a bounce off of $35.82 or a move above $37.09 on midday volume of at least 700,000 shares before starting new plays. We are leaving our stops at $33 to limit potential losses.

Picked on February 4th @ $36.40
Change since picked -0.27
Stop Loss @ $33.00