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 8, 2001

Lockheed Martin Corporation remains in a firm upward trend despite the day-to day fluctuations. On Thursday, shares of LMT hit a new 52-week high of $39.50 before running into some profit taking. The stock closed at $38.60 on volume of 2.1 million shares. LMT has made 5 consecutive higher highs and 3 consecutive higher lows. The stock constantly tests support and volume remains heavy so it could continue to move higher. For now, support is Thursday’s intra-day low of $38.15 with stronger support at the 10-dma, currently at $37.89. Resistance has moved up to Thursday’s intra-day high of $39.50 and then the 6/8/99 intra-day high of $41.56. A bounce off of $38.15 or a breakout above $39.50 on midday volume greater than 800,000 shares may be possible entry points. We are keeping our stops at $35 to limit potential losses.

Picked on February 4th @ $36.40
Change since picked +2.20
Stop Loss @ $35.00

March 6, 2001

Aerospace contractor Lockheed Martin has hit two consecutive 52-week highs this week on news of a $43 million contract win with the US Navy and a move by the FAA to skip the bidding process for its long-distance air traffic control system and award the deal to Lockheed. Unfortunately, shares of LMT sold off during Tuesday’s session on profit taking, with 1.73 million shares changing hands. Despite the pullback, the stock remains in a strong upward trend, although the MACD looks a bit stretched. In the meantime, support is the 20-dma at $36.89 with stronger support at $36.23, Friday’s intra-day low. Resistance remains at the 8/23/99 intra-day high of $39.44 and then the 6/8/99 intra-day high of $41.56. Consider starting new plays on a bounce off of $36.89 or a breakout above $39.44 on volume greater than 800,000 shares by noon. We are keeping our stops at $35 as downside protection.

Picked on February 4th @ $36.40
Change since picked +0.98
Stop Loss @ $35.00

March 4, 2001

Lockheed Martin Corporation opened Friday’s session in negative territory on news that NASA has terminated its X-33 space plane project with LMT. Shares of the aerospace contractor fell below the 20-dma to an intra-day low of 36.23. However, the stock bounced back after the Estonian defense ministry agreed to buy long-distance surveillance radar from Lockheed Martin. LMT ended the day at a 52-week high of $38.30. The stock has been trending higher on above average volume over the past month, so it could continue to rally. Going forward, support has moved up to the 5-dma at $37.69 with additional support at $36.73, the 20-dma. Resistance is now up to the 8/23/99 intra-day high of $39.44 and then the 6/8/99 intra-day high of $41.56. Traders should be looking for entry points on a bounce off of $37.69 or a breakout above $39.44 on volume of at least 800,000 shares by noon. Our stops are holding steady at $35 to limit downside exposure.

Picked on February 4th @ $36.40
Change since picked +1.90
Stop Loss @ $35.00