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 20, 2001

Lockheed Martin Corporation came under pressure on Monday morning. The stock fell to an intra-day low of $34.68 on volume of 2.21 million shares early in the session. Our stops were triggered at $35, so we are dropping the stock from our Current Plays list.

Picked on February 4th @ $36.40
Profit/Loss = -1.40 (-4%) (Stopped out Monday @ $35.00)
Best Profit = +3.10 (+9%)

March 18, 2001

Lockheed Martin Corporation has lost ground in each of the last 4 sessions. On Friday, LMT sold off following news that Congressional auditors gave a negative report on the status of the $61.9 billion F-22 fighter program with Lockheed. Shares of LMT fell to an intra-day low of $36.32 before bouncing back to a close of $37 on volume of 2.28 million shares. The stock is starting to show signs of a bottom after hitting a higher low and a higher high on Friday. However, LMT has formed a short-term downward trend, so the stock may need to test support before it moves higher. For now, support is Friday’s intra-day low of $36.32 with stronger support at $35.76, the 50-dma. Resistance has fallen to Friday’s intra-day high of $37.60 and then Tuesday’s intra-day high of $38.90. Look for entry points on a bounce off of $36.32 or a move above $37.60 on volume greater than 800,000 shares by noon. We are keeping our stops at $35 to limit potential losses.

Picked on February 4th @ $36.40 Change since picked +0.60
Stop Loss @ $35.00