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$72.10 -5.01 (-6.50%)
12/1/2008 2:11 PM

Lockheed Martin Corp (LMT)

CAPS Rating:
****

The Company researches, designs, develops, manufactures, integrates, operates and sustains advanced technology systems, products and services. It serves customers in domestic and international defense and civil markets.

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Avatar cunnin7003 (93.85) Submitted: 9/21/06 12:58 AM : Underperform Start Price: $80.74 LMT Score: -25.32

I bought this at $17 years ago when they dropped by more than 50% in one day on the belief that the govn could never let a major defence contractor go under. And also on the belief that a new administration might be heavier defence spenders than Clinton (I never expected this though). Well, now we're basically in the exact opposite position now, with a new administration due up in a couple years. I'm holding for now (gotta time things right for tax purposes), but I expect that within 2 to 4 years this stock could be on the wrong side of the political environment (I can only hope). I'm calling it an underperform for 5 years, but really 5 years is a bit short for my thinking, I'm almost sure over ten years LMT will underperform, but they conceivably could continue to perform well for the next few years, but I expect clouds on the horizon.

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Avatar nocemployee (47.55) Submitted: 3/28/08 12:04 PM

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I completely understand your pessimism, and you may be right, BUT.....Defense contractors, specifically NOC and LMT are becoming increasingly diverse in products and services offered. They continue to bid and win civilian contracts. Having said that, even with a hard core liberal in office, we will still require military improvements and upgrades. These companies can survive simply by downsizing and offering more support services to the DoD assets. I believe that you should spend some time looking deeeeep into products offered and continue to watch new contracts that are awarded before dropping the stock.

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