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 15, 2001

Lockheed Martin has been under pressure over the last week after hitting a 52-week high on March 8th. On Thursday, shares of LMT spent the entire day in negative territory. However, the stock bounced off of its intra-day low of $36.15 to close at $37.50, its intra-day high. LMT closed below its 20-dma for the first time since January 24th and it is gaining downward momentum on strong volume. The stock was due for some profit taking but that should not last much longer as the stock approaches its last breakout point at $35.25. In the meantime, support is Thursday’s intra-day low of $36.15 with additional support at $35.69, the 50-dma. Resistance is now the 5-dma at $38.21 and then Tuesday’s intra-day high of $38.90. Traders may consider starting new plays on a bounce off of $36.15 or a move above $38.21 on midday volume of at least 800,000 shares. Our stops are holding steady at $35.

Picked on February 4th @ $36.40
Change since picked +1.10
Stop Loss @ $35.00

March 13, 2001

Lockheed Martin has been consolidating for the past three sessions. On Tuesday, J.P. Morgan (JPM) initiated coverage of eight aerospace and defense companies. Lockheed Martin was given a “market performer” rating and a $38 price target, 99 cents below Monday’s closing price. Shares of LMT fell to an intra-day low of $37.55 before bouncing off of the 20-dma to a close of $38.34 on volume of 1.61 million shares. LMT has lost some of its momentum, but its upward trend is still healthy after a successful test of major support at the 20-dma on Tuesday. For now, support is the 10-dma at $38.18 with stronger support at $37.58, the 20-dma. Resistance has fallen to Tuesday’s intra-day high of $38.90 and then Monday’s intra-day high of $39.41. Look for bounce off of $38.18 or a move above $38.90 on midday volume of at least 800,000 shares before opening new positions. We are keeping our stops at $35 as downside protection.

Picked on February 4th @ $36.40
Change since picked +1.94
Stop Loss @ $35.00

March 11, 2001

Lockheed Martin Corporation failed to reach its fifth straight 52-week high on Friday due to news that the Department of Defense is delaying a decision on whether to approve production of the F-22 until a US weapons review is completed. Shares of the aerospace contractor fell to an intra-day low of $38.01 before bouncing back to close at $38.56 on volume of 1.44 million shares. Momentum has cooled down after Wednesday’s volume surge so LMT may spend some time consolidating in the $37-$39 range. From a technical standpoint, support is the 10-dma at $38.05 with additional support at Wednesday’s intra-day low of $37.47. Resistance is holding steady at Thursday’s intra-day high of $39.50 and then the 6/8/99 intra-day high of $41.56. Consider opening new positions on a bounce off of $38.05 or a breakout above $39.50 on volume of at least 800,000 shares by noon. Our stops remain at $35.

Picked on February 4th @ $36.40
Change since picked +2.16
Stop Loss @ $35.00