Lockheed Martin Corp (LMT)

Lockheed Martin Corporation successfully completed its acquisition of Management Systems designers in the first quarter of 2007. This acquisition provides enhanced systems and IT capabilities for its ongoing healthcare initiatives and also provides extended access to critical new customers such as the National Institutes of Health. Recently the company acquired the assets of RLM Systems in Australia, which develops software and operates classified geospatial systems for the Australian Government. Thus it will position them to do classified business with the Australian Ministry of Defense and its related intelligence agencies as well as the U.S. National Geospatial Agency.

In the first quarter, company’s revenues increased by 1% to $9.3 billion. Revenues remained relatively unchanged as it witnessed marginal increase in every business segment except Space. Net income increased by 17% to $690 million reflecting improved operating margin, lower interest expense and income tax expense.

Lockheed is looking to grow through what it calls adjacent opportunities, which include new but related businesses, expanding capabilities, and new relationships. In first quarter, company has created a new business area, Information Systems & Global Services, which consolidates the entire spectrum of its information technology expertise from across the corporation into a single cohesive operating unit.

The technicality and huge capital investment are big barriers to entry in this business and hence competition for copious work remains concentrated. Moreover it enjoys an extremely long and mostly smooth relationship with the federal government, from which it earns 85% of its revenues. The company is the largest player in a heavily concentrated military industry, with nearly 20% more in revenue than its next-largest competitor. Its bigger size enables company to spread fixed costs across more programs while better utilizing its increasingly flexible asset base. Its lower price earning ratio compared to industry ratio coupled with its leadership and relation with government makes this stock a good prospect.

With the Joint Strike Fighter (JSF) / F35 Lightning II contract coming to fruition and more than the USA buying it, I think investors will be buying into this company in the near future.

War

Acquired new company, winning contracts, war is still bullish.

LMT has enough contracts now to raise the share price and potentially split. Many are preventative versus directly associated with the war in Iraq and should continue to grow regardless of the Iraq outcome.

I used to work here and know it is an awesome company. Very well run.

I work for them and am aware of the many programs in the works that are international in scope and that will provide the security in many different countries that will welcome this with open checkbooks.

Consistent, well run company with strong growth potential in areas of homeland defense and federal IT services. Huge backlog of orders to fill should help sustain positive earnings growth in uncertain times.

This stock was picked to outperform from May 2007 to May 2008 by TMFLaceyP

Reasons to buy:
* Earnings have been increasing for years
* Constant upside surprises on earnings
* Several upside restatements of earnings expectations
* Constantly increasing cash flow
* Increasing dividend
* Decreasing long term debt
* F-35 business will increase by several billion a year in a few years. More countries will sign on and the total amount of planes to be delivered will keep increasing - it will be at least as successful as the F-16 program
* The IT business is still growing quickly and was recently reorganized to allow for more efficient operations.
* Strategic aquisitions here and there.
* Aggressive growth targets for its business units over the next few years
* Will be a safe haven if the economy goes south.

The US government defense money train continues, and there's no end in sight. Make no mistake -- the Dems in Congress will not even hint at slowing it down, and most 2008 front-runners are pro-defense spending. Plus Bush wants to go to the moon, and plenty of geeks think we should scrap that and go to mars instead. The future looks rosy for LMT.

As Iraq winds down defense willstart to be reduced

War continues for next few years. World is unstable. Defence spending will continue. New weapons systems are needed to replace old and antiquated. LM is top dog and is well managed. Constant improvement is always pursued. Lots of IR&D being spent. LM strives to be ethical and competitive. Mgt appears to be sensible and disciplined.

Lockheed is the US government's biggest defense contractor. Currently we're in what has become a long term in Iraq. We're facing possible threats from Iran and North Korea. The US is friendly with China right now but China is an emerging super power. I expect to see Lockheed get a lot of business in the coming years as the US does what it can to counter these existing and potential threats.

I am currently in the USAF and have not only worked on, but trust LMT technology. I started out working on the C-141b Starlifter. It was at the time the workhorse of the Air Force delivering Cargo and Troops around the world. I now occasionaly work on the C-5 Galaxy. With the new modernization of this fleet, it will add at least 20 years to the already 40+ year old airframes. But aircraft are not the only systems LMT has its hands in. They are delving into just about every technology, as they aquire more and more companies. I see this company sticking it out for the long haul, as it has for many years already.

War on terror, they're one of the main defense contractors. Working on the Joint Strike Fighter as well as choppers. I only see them only continuing to go up.

KIP

One of the largest aerospace companies in the world. Plenty of DoD contracts.

Defense and aerospace will be big industries in the coming years. There is nowhere near the liberal power needed in Washington to stop the war (democrats barely have the majority, and very few democrats actually push for a full withdrawal), and with the U.S. government pouring cash into defense (or offense) LMT has no reason to slow down anytime soon. The government may be spending money it really doesn't have and fighting a war it really doesn't have to fight, but the fact is it results in big business for defense contractors.

This is really not a hard call. LMT has almost always beat the S&P 500. Just look at the Charts. I mean really Lockhead is there for the US's defense needs -- from scanning luggage, to blowing sh** up.