The list of stocks has been whittled down to four. Chevron Corporation (CVX) made the cut to become the oil company stock. Three defense sector powerhouses are competing for one spot in Chasing Value: 2011 Stock Picks -- The Journey Begin.

Today we take a more comprehensive view returning to earlier metrics, and adding some other criteria in order to reach a conclusion. This series began with the contention that making specific predictions was a fools errand with the danger to your portfolio coming from "black swans". To try and add some general counter measures to this possibility I decided that the defense and oil sectors might provide protection against the greatest of threats, war and terrorism. On that basis I posted Chasing Value: You Must Own Defense and Oil for Safety.

Continue reading Chasing Value: Defense and Oil -- Part 4 Conclusion

Chasing Value: Defense and Oil -- Part 4 Conclusion originally appeared on BloggingStocks on Fri, 17 Dec 2010 11:00:00 EST. Please see our terms for use of feeds.

• Lockheed Martin: 3.77%
• Raytheon Company: 3.16%
• Northrop, Grumman: 2.89%
• General Dynamics: 2.59%

Continue reading Chasing Value: Scoping Out Defense Contractors -- Part 2

Chasing Value: Scoping Out Defense Contractors -- Part 2 originally appeared on BloggingStocks on Tue, 12 Oct 2010 11:00:00 EST. Please see our terms for use of feeds.

However, at least one investor is feeling anxious ahead of Thursday morning's event -- around 11 a.m. Eastern today, a collar spread crossed the tape on LMT. A block of 300 contracts traded at the equity's February 80 call at the bid price of $0.75, while a matching block of 300 contracts simultaneously traded on the February 75 put for the ask price of $1.50. With LMT trading near $77 at last check, both options are currently out of the money.

Continue reading Anxious Investor Collars Lockheed Martin Ahead of Earnings

Anxious Investor Collars Lockheed Martin Ahead of Earnings originally appeared on BloggingStocks on Wed, 27 Jan 2010 14:40:00 EST. Please see our terms for use of feeds.

Boeing lost $2.23 per share in the third quarter. The comparison is pretty tough, because in the similar quarter last year, the company earned 96 cents per share. Boeing was expected to lose somewhere around $2.12 per share, according to Earnings.com. Unfortunately, the guidance for the full fiscal year is pretty bad, too. What once was a range between $4.70 per share and $5.00 per share has now dropped to one with a low of $1.35 per share and a high of $1.55 per share.

Continue reading Buying Boeing requires bravery after Q3 loss

Buying Boeing requires bravery after Q3 loss originally appeared on BloggingStocks on Wed, 21 Oct 2009 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Lockheed Martin (LMT) dips on slow growth forecast

Lockheed Martin (LMT) dips on slow growth forecast originally appeared on BloggingStocks on Tue, 20 Oct 2009 12:20:00 EST. Please see our terms for use of feeds.

Late last Friday, The Wall Street Journal reported that the Defense Department has ordered Lockheed Martin Corporation (NYSE: LMT) to cease work on a $13 billion contract to build helicopters for the White House.

The move was widely expected, since the Obama administration has previously pointed to the revamped copters as an example of excessive defense spending. However, the contract's cancellation will no doubt bring fresh job losses to Owego, NY, where the Marine One copter is being designed.

Continue reading Layoffs loom at Lockheed Martin after Marine One cancellation

Layoffs loom at Lockheed Martin after Marine One cancellation originally appeared on BloggingStocks on Mon, 18 May 2009 11:30:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Merriman upgraded Dendreon (NASDAQ: DNDN) to Buy from Neutral on expectations shares will react positively to the full IMPACT data release on April 28. The firm thinks Provenge could represent the first cancer immunotherapy approved in the U.S. and raised its valuation range on the stock to $33-$34 from $18-$19.
• Piper Jaffray upgraded Andersons (NASDAQ: ANDE) as it believes the valuation is attractive, investor expectations are low, and the company's fertilizer and rail segments could recovery in FY10. The firm has a $19 target on shares. Goldman upgraded the auto sector to Neutral from Cautious and added Ford (NYSE: F) to its Conviction Buy list. The analyst does not believe Ford will have to declare bankruptcy and sees the company benefiting from Chrysler share declines and GM's (NYSE: GM) reduced product offerings. Ford's price target is $6
• Banc of America/Merrill upgraded U.S. Airways (NYSE: LCC) to Buy from Underperform.
• Broadcom (NASDAQ: BRCM) was upgraded to Equal Weight from Underweight at Morgan Stanley.
• Caterpillar (NYSE: CAT) was raised to Overweight from Neutral at JP Morgan.

Continue reading Analyst upgrades, downgrades and initiations: DNDN, ANDE, the auto sector, DGX, MTB, ADVS, ITG, MF and PCLN

Analyst upgrades, downgrades and initiations: DNDN, ANDE, the auto sector, DGX, MTB, ADVS, ITG, MF and PCLN originally appeared on BloggingStocks on Wed, 22 Apr 2009 13:20:00 EST. Please see our terms for use of feeds.

Analyst Douglas Harned of Sanford C. Bernstein chopped his price targets on several defense stocks today, including Lockheed Martin Corp. (NYSE: LMT). "Trends in the defense budget remain the most important driver of defense stocks, and the cash flow outlook is strong for the defense businesses," said Harned in a note to clients.

Harned cut LMT's price target from $104 to $96, but he reiterated an "outperform" rating on the stock. Lockheed Martin remains the analyst's top pick in the defense sector, thanks to its strong overall growth potential and support from its F-35 Joint Strike Fighter program. Despite his forecast for a reduction in supplemental defense budgets, Harned expects the F-35 program will remain fully funded.

Continue reading Lockheed Martin hit with price-target cut on defense budget concerns

Lockheed Martin hit with price-target cut on defense budget concerns originally appeared on BloggingStocks on Mon, 16 Mar 2009 11:15:00 EST. Please see our terms for use of feeds.

Continue reading Lockheed Martin rises on strong earnings

Lockheed Martin rises on strong earnings originally appeared on BloggingStocks on Thu, 22 Jan 2009 16:30:00 EST. Please see our terms for use of feeds.

Continue reading What to invest in now that Obama has taken office

What to invest in now that Obama has taken office originally appeared on BloggingStocks on Tue, 20 Jan 2009 17:30:00 EST. Please see our terms for use of feeds.

"As my high school football coach always quipped, 'Offense may win fans, but defense wins games,'" says leading growth stock expert Louis Basenese.

Here, the Oxford Club associate investment director takes a look at his three favorite defense stocks, noting, "When it comes to investing in the current environment, I'm convinced that you can't go wrong with this trio of companies."

"In my view, this sector willl never fall out of favor. The recent development with Russia serves to underscore another point I've been making for years. We always have to be prepared.

"Or, put another way, there will never be a good time for defense cuts, lest we want to leave our country vulnerable.Add it all up, and we can expect defense companies to enjoy steady demand. Even in the face of a recession.

"As the CEO of Rockwell notes, there has been absolutely no fallout in the defense industry as a result of the worldwide credit meltdown or other economic woes. So here's a quick run-down on the three defense companies we prefer for investors.

Continue reading Defensive trio: Lockheed, Raytheon and L-3

Defensive trio: Lockheed, Raytheon and L-3 originally appeared on BloggingStocks on Mon, 27 Oct 2008 10:43:00 EST. Please see our terms for use of feeds.

"I've always been a big fan of putting into the market on a regular basis regardless of what is happening in the overall market," explains Chuck Carlson, long considered one of the advisory industry's leading experts on dividend reinvestment plans.

Here, the editor of The DRIP Investor offers a 10-stock "autopilot" portfolio that is diversified among 10 high quality dividend-paying stocks and requiring a monthly investment of under $500.

Carlson says, "If I've learned anything in the more than a quarter of a century of following the markets, it is this fact - buying stocks when you know you should (i.e. during sharp down moves) is really difficult. Our heads says we should; after all, substantial market downturns create the best values.

"But our emotions usually take control, thus making it very difficult to pull the trigger and put money into the market when stocks are falling.

"That's why I've always been a big fan of 401(k) plans. With these investment vehicles, investment programs are put on 'autopilot,' with dollars being put into the market on a regular basis (usually each paycheck) regardless of what is happening in the overall market.

"Fortunately, investors can duplicate the autopilot feature of 401(k) plans with their DRIP investments by taking advantage of automatic monthly investment features provided by most DRIPs.

Continue reading 'Autopilot' portfolio: 10 stocks for long-term investors

'Autopilot' portfolio: 10 stocks for long-term investors originally appeared on BloggingStocks on Fri, 15 Aug 2008 17:44:00 EST. Please see our terms for use of feeds.

"Partial insulation from the economic slowdown, coupled with new military-aircraft programs, give Lockheed Martin (NYSE: LMT) attractive capital-gains potential over the next several years," says Richard Moroney.

In his blue chip oriented Dow Theory Forecasts, the advisor explains, "A diversified business mix provides investors a measure of safety in a dif?cult economic climate. The stock is a Focus List Buy."

"Lockheed seems well-positioned with regards to the U.S. defense budget, with very little exposure to Iraq. The company is capable of growing pro? ts even if the new U.S. president pulls troops out of the country.

"While defense-spending growth is likely to slow in coming years, ongoing security threats and the need to replace aging equipment should keep the baseline defense budget, which excludes war-related costs, growing through at least 2012.

"A diversified business mix provides investors a measure of safety in a dif?cult economic climate. After the Air Force, Lockheed's next-largest end market is civil government and homeland security, accounting for 26% of revenue.

"The U.S. Navy accounts for 20% of sales and the Army 10%. About 13% of sales are international, and the U.S. communications industry accounts for 3%.

Continue reading A look at Lockheed (LMT): More than defense

A look at Lockheed (LMT): More than defense originally appeared on BloggingStocks on Fri, 08 Aug 2008 12:05:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Lockheed Martin Corporation (NYSE: LMT) is expected to beat out The Boeing Company (NYSE: BA) for an approximate $1.8B contract to from the U.S. Air Force to build a new generation of navigation satellites, the Wall Street Journal reported.
• According to the Wall Street Journal, former American International Group Inc (NYSE: AIG) CEO Maurice R. "Hank" Greenberg is pressing the troubled insurer to turn the company around. He says that he and other major shareholders have "deep concern about the persistent and seemingly endless destruction of value at AIG."
• Hybrid Capital Second, a Morgan Stanley (NYSE: MS) investment vehicle, increased its stake in internet start-up Livedoor to 18.15% from 12.76% in March, the Financial Times reported, superseding the company's founder, Takafumi Horie.

• After it incurred $3.2B of bad debts in the first three months of the year, the Telegraph reported that Knight Vinke, an HSBC Holdings Plc (NYSE: HBC) shareholder, has renewed calls for the bank to shed its U.S. consumer finance business.

Newspaper wrap-up: Lockheed expected to win $1.8B contract for navigation satellites originally appeared on BloggingStocks on Tue, 13 May 2008 08:10:00 EST. Please see our terms for use of feeds.

After hitting a one-year low of $88.86 in August, the stock hit a one-year high of $113.74 in October. LMT opened this morning at $103.99. So far today the stock has hit a low of $103.79 and a high of $108.00. As of 12:45, LMT is trading at $107.08, up $3.29 (3.1%). The chart for LMT looks bearish but improving, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a June bull-put credit spread below the $95 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 6.4% return in just two months as long as LMT is above $95 at June expiration. Lockheed Martin would have to fall by more than 11% before we would start to lose money.

Continue reading Lockheed Martin (LMT) soars one day after earnings

Lockheed Martin (LMT) soars one day after earnings originally appeared on BloggingStocks on Wed, 23 Apr 2008 13:58:00 EST. Please see our terms for use of feeds.

Defense contractor Lockheed Martin (NYSE: LMT) posted strong earnings this morning for its first quarter of $1.75 per share, well ahead of the $1.63 analysts had been expecting.

Looking at the quarter's revenue figures, we see a nice year-over-year jump, climbing to

Continue reading Lockheed Martin (LMT) falls despite strong earnings

Lockheed Martin (LMT) falls despite strong earnings originally appeared on BloggingStocks on Tue, 22 Apr 2008 10:22:00 EST. Please see our terms for use of feeds.

• Mattel (NYSE:MAT) to report Q1 earnings; conference call at 8:30am.
• Halliburton (NYSE:HAL) reports Q1 earnings; conference call at 9:00am.
• Bank of America (NYSE:BAC) to report Q1 earnings; conference call at 9:30am.
• Toronto-Dominion (NYSE:TD) t o hold conference call about the acquisition of Commerce Bancorp (CBH) at 11:00am.

• Wyeth (NYSE:WYE) to report Q1 earnings; conference call at 8:00am.
• The Federal Reserve to host a meeting regarding the Countrywide Financial (NYSE:CFC) takeover by Bank of America at 9:30am.
• AT&T (NYSE:T) to report Q1 earnings; conference call at 10:00am.
• Lockheed Martin (NYSE:LMT) to report Q1 earnings; conference call at 11:00am.
• Yahoo (NASDAQ:YHOO) to report Q1 earnings; conference call at 5:00pm.

• Biovail (NYSE:BVF) PDUFA date for NDA of BVF-033 for the treatment of depression.
• UPS (NYSE:UPS) to report quarterly earnings; conference call at 8:30am.
• General Motors (NYSE:) to hold conference call on 1Q08 global sales at 9:00am.
• Delta (NYSE:DAL) to report Q1 earnings; conference call at 10:00am.
• Amazon.com (NASDAQ:AMZN) to report Q1 earnings; conference call at 5:00pm.

• Hershey (NYSE:HSY) to report Q1 earnings; conference call at 8:30am.
• Microsoft (NASDAQ:MSFT) to report Q3 earnings; conference call at 5:30pm.

• Wendy's (NYSE:WEN) to report Q1 earnings; conference call at 9:00am.

Market highlights for next week: HAL, T, LMT and MSFT reporting earnings originally appeared on BloggingStocks on Fri, 18 Apr 2008 15:31:00 EST. Please see our terms for use of feeds.

Scientists at NASA plan to put one of the twin Mars rovers to sleep and limit the activities of the other robot to fulfill a NASA order to cut $4 million from the program's budget, mission team members said Monday.

The project, which was originally supposed to run for three months, is now in its fourth year, successfully exploring the terrain of Mars. It costs NASA about $20 million to keep the project going, but due to budget cuts, the space agency is forced to put its child up for adoption, so to speak. As of yet, no billionaire has stepped up to the plate, but I am hoping that someone will soon.

For the cost of a few of your average modern missiles, we are abandoning a program that has been one of NASA's most visible and productive projects.

Continue reading Mars rover is over: LMT, RTN, billionaires please inquire

Mars rover is over: LMT, RTN, billionaires please inquire originally appeared on BloggingStocks on Wed, 26 Mar 2008 17:19:00 EST. Please see our terms for use of feeds.

Continue reading Defense stocks should be on your radar screen

Defense stocks should be on your radar screen originally appeared on BloggingStocks on Thu, 07 Feb 2008 16:19:00 EST. Please see our terms for use of feeds.

Lockheed stock has shot up over the past three months, hitting a one-year high of $113.74 earlier this month. LMT opened this morning at $106.16. So far today the stock has hit a low of $106.15 and a high of $108.90. As of 11:05, LMT is trading at $108.70, up $1.73 (1.6%). The chart for LMT looks bullish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $90 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just 3 months as long as LMT is above $90 at January expiration. Lockheed would have to fall by more than 17% before we would start to lose money.

Continue reading Lockheed Martin, defense stocks on a roll

Lockheed Martin, defense stocks on a roll originally appeared on BloggingStocks on Wed, 24 Oct 2007 12:38:00 EST. Please see our terms for use of feeds.