Bullish Scenario for Lockheed Martin

Featuring Daniel Lacalle

Daniel LaCalle, chief economist at Tressis Gestión brings a compelling case as to why the strong fundamentals and significant increase in global defence spending create a bullish opportunity for Lockheed Martin ($LMT).

Published on
8 August, 2017
Topic
Monetary policy, Europe
Duration
5 minutes
Asset class
Bonds/Rates/Credit, Equities, Commodities
Rating
59

Comments

  • JF

    John F.

    19 11 2017 13:40

    0       0

    Historically the defense cycle has run 4 years at a time. It started in 2013 per you chart, which may indicate it is finishing out. This will be due to Market Risk which is indicated by Sales forecast declines across most industries for 2018 and is evident by the breath of the Market on a long term decline. The price of the stock will be vulnerable to Market Risk even though there is no Company Risk. Your PE will be coming down by 2nd quarter of 2018.

  • MB

    Martin B.

    22 10 2017 18:01

    0       2

    I don't care how much opportunity for profit Lockheed Martin or any "defence" (attack) contractor may offer.
    The fact remains that they are war mongers who profit from death, destruction and human misery. How much of their profit comes from the war in Syria, Yemen and many other places across the globe? They have blood on their hands and they should be treated like the plague they are.
    I expected RVTV to have a more honourable conscience than promoting disgusting, evil companies such as this. Profiting from their business is shameful.

    Starve the beast.

  • RG

    Richard G.

    10 8 2017 05:13

    5       0

    I am a trend follower. I am happy to buy high and sell higher, but that chart is parabolic-esque in my humble opinion

  • RD

    Rahul D.

    9 8 2017 04:55

    4       1

    Is this is a pump and dump scheme? Sure looks like one.

  • YB

    Yuriy B.

    8 8 2017 18:27

    9       0

    Next in "Trade Ideas," the author of "Buy Lockheed Martin" provides other bold investment theses, such as "Buy Facebook" and "Buy Netflix". Thanks.

  • BB

    Brian B.

    8 8 2017 15:59

    21       0

    I thought the idea was buy low and sell high? The time to buy this was during the sequester (like I did) when it was at $70-$80 and trading at around 10-11 times earnings, not after the stock nearly quadrupled and trades at nearly 24x, the highest by far in at least the last 20 years. I love RV, but this idea is a dud.

  • HS

    Hisham S.

    8 8 2017 14:49

    7       1

    I appreciate the trade idea - they are my favorite thing about Real Vision. But I cannot on principle go long on a stock that is hitting all time highs and about to hit the psychological $300 barrier.

  • GT

    Graham T.

    8 8 2017 13:54

    13       1

    The stock has already TREBLED in 4 years despite Sales over 4 years flat and pre tax income up only just 20% in those 4 years.
    The CFO Bruce Tanner disagrees, having increased his Insider Selling 10 fold to $8.5m in the January window alone. What do you think he will do this August? My guess at least another $25m . In the 2 previous cycles the stock has halved, will it be different this time? hhmmm let me think.

  • PU

    Peter U.

    8 8 2017 13:33

    9       0

    How much of his thesis is already priced in the stock? I guess most of it.

  • GM

    Greg M.

    8 8 2017 11:36

    11       2

    How much more can the governments in the West spend? Their welfare states are being stretched to the max. I remember staring at this stock when it was 77 dollars a share in 2008-2009. Ethically I have a problem with this stock because -
    1. Lockheed Martin is the epitome of "privatize the profits and socialize the loss." Americans pay for their development of products then Lockheed turns around and sells them to a Saudi Prince. They are a welfare queen.
    2. Their products kill, maim and sow destruction around the world.
    3. The F-35 is a big steaming POS