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

March 1, 2001

Aerospace contractor Lockheed Martin Corporation has lost some ground over the past two sessions. On Thursday, shares of LMT traded below its 20-dma to an intra-day low of $35.65. However, the stock bounced back late in the day to close at $36.73 on volume of 1.87 million shares. Hopefully, this is just a round of profit taking and LMT will be able to regain its momentum. From a technical standpoint, support has fallen to the 20-dma at $36.63 with additional support at Thursday’s intra-day low $35.65. Resistance is the 5-dma at $37.42 and then Wednesday’s intra-day high of $38.15. A bounce off of $36.63 or a breakout above $37.42 on midday volume of at least 800,000 shares may be possible entry points. We are leaving our stops at $35 to limit potential losses.

Picked on February 4th @ $36.40
Change since picked +0.33
Stop Loss @ $35.00

February 27, 2001

Lockheed Martin, a leading aerospace contractor, continues to trend higher on solid volume. On Monday, shares of LMT hit an intra-day high of $38.01 just before the closing bell. Volume has been heavy over the past two weeks, as the stock trades to 52-week highs. The upward trend remains very healthy and LMT appears to be on a slow and steady path to its all-time high. In the meantime, support has come in at Tuesday’s intra-day low of $37.42 with stronger support at $36.97, the 10-dma. Resistance is now up the February 21st intra-day high of $38.25 and then the 8/26/99 intra-day high of $39. Traders should be looking for a bounce off of $37.42 or a breakout above $38.25 on midday volume greater than 800,000 shares before starting new plays. Our stops remain at $35 as downside protection.

Picked on February 4th @ $36.40
Change since picked +1.60
Stop Loss @ $35.00

February 25, 2001

Aerospace contractor Lockheed Martin Corporation traded lower on Friday following news that Northrop Grumman (NOC) had filed suit against LMT for allegedly eliminating NOC from a $4 billion contract with the U.S. Army. Northrop claims it helped Lockheed Martin win the contract but that Northrop's share of the work was then given to a unit of Lockheed. Shares of LMT fell to an intra-day low of $36.30 on volume of 1.55 million shares. The stock was due for a round of profit taking after gaining 4% in just three sessions and we are not too concerned about Friday’s pullback. For now, support has fallen to the 20-dma at $36.08 with additional support at $35.10, the February 15th intra-day low. Resistance is now down to Friday’s intra-day high of $37.56 and then Wednesday’s intra-day high of $38.25. A bounce off of $36.08 or a move above $37.56 on midday volume of at least 800,000 shares may be possible entry points. We are keeping our stops at $35 as downside protection.

Picked on February 4th @ $36.40
Change since picked +0.55
Stop Loss @ $35.00