10-14-2013, 12:52 PM
Interesting.
I have LMT and GD on my watch list. LMT buy @ $100 and GD buy @ $65.
When a company meets my basic entry criteria; I know the company or I can understand the company, current Dividend of 2.5%+, P/E under 5 year norm, div. growth which combined with current div = 10% or better, 10+ year history of div. increases, and a P/R below 75%-- and of course I have socks in my portfolio that defy one or more of these rules for various reason (there's always the exception that probes the rule ;-).
When that general criteria is meet, I set an entry price usually based on a good value in the 52 week price. For LM, $100 seems to be about dead middle.
Now granted, it hasn't gotten there in some time (but then again IBM hadn't gotten below $180 in some time...then it did;-)
So for me, LMT and GD are still to dear for me. How might some of your present the case that these defense companies are a value? DDM, or...?
Of course, no challenge or "line in the sand" is meant here, but rather how are we thinking different about these opportunities(and how might our thinking help each other better assess "value?"
Ronn
I have LMT and GD on my watch list. LMT buy @ $100 and GD buy @ $65.
When a company meets my basic entry criteria; I know the company or I can understand the company, current Dividend of 2.5%+, P/E under 5 year norm, div. growth which combined with current div = 10% or better, 10+ year history of div. increases, and a P/R below 75%-- and of course I have socks in my portfolio that defy one or more of these rules for various reason (there's always the exception that probes the rule ;-).
When that general criteria is meet, I set an entry price usually based on a good value in the 52 week price. For LM, $100 seems to be about dead middle.
Now granted, it hasn't gotten there in some time (but then again IBM hadn't gotten below $180 in some time...then it did;-)
So for me, LMT and GD are still to dear for me. How might some of your present the case that these defense companies are a value? DDM, or...?
Of course, no challenge or "line in the sand" is meant here, but rather how are we thinking different about these opportunities(and how might our thinking help each other better assess "value?"
Ronn