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 22, 2001

Lockheed Martin Corporation, a leading aerospace contractor, continues to trend higher in the midst of a dicey market. On Wednesday, shares of LMT traded to a 52-week high of $38.25 before retreating late in the session. On Thursday, the stock closed at $37.75, representing its highest close since 8/26/99. Volume has been trending higher along with the stock price and the slope of the upward trend appears sustainable. LMT may be at the beginning of a long-term upward trend with supporting fundamentals associated with George W. Bush’s “messages” to Iraq. On the technical side, support is now up to Thursday’s intra-day low of $37.10 with stronger support at $36.44, the 10-dma. There is resistance at Wednesday’s intra-day high of $38.25 and then the 8/23/99 intra-day high of $39.44. Traders may consider starting new plays a bounce off of $37.10 or a breakout above $38.25 on volume greater than 800,000 shares by noon. Our stop remain at $35.

Picked on February 4th @ $36.40
Change since picked +1.35
Stop Loss @ $35.00

February 20, 2001

Aerospace contractor Lockheed Martin Corporation broke out of its trading range after 11 sessions of sideways trading. The stock traded to an intra-day high of $37.85 on volume of 1.8 million shares. Shares of LMT closed above the $37 mark for the first time in 17 months, so the stock may be ready for a nice upside move. Going forward, support has moved up to the February 13th intra-day high of $37 with stronger support at $36.19, the 10-dma. Resistance has come in at Tuesday’s intra-day high of $37.85 and then the 8/23/99 intra-day high of $39.44. Consider entry points on a bounce off of $37 or a breakout above $37.85 on volume greater than 800,000 shares by midday. We have moved our stops up to $35 to protect additional capital.

Picked on February 4th @ $36.40
Change since picked +1.08
Stop Loss @ $35.00

February 18, 2001

Lockheed Martin Corporation has been consolidating in the $35-$37.50 range for the past eleven sessions. On Friday, shares of the aerospace contractor traded to an intra-day high of $37.20 before pulling back to a close of $36.25 on heavy volume of 4.71 million shares. Volume was impressive, trading 3 times the average daily volume on Friday, although it may be related to the February option expiration cycle and the fact that the U.S. bombed Iraq. On the technical side, support is the 20-dma at $35.27, with additional support at $34.50, Tuesday’s intra-day low. Resistance is Wednesday’s intra-day high of $37.65 and then the 8/23/99 intra-day high of $39.44. Traders may consider opening new positions on a bounce off of $35.27 or a move above $37.65 on volume greater than 600,000 shares by noon. Our stops remain steady at $33 to limit potential losses.

Picked on February 4th @ $36.40
Change since picked –0.15
Stop Loss @ $33.00