07-22-2014, 11:56 AM
(07-22-2014, 10:37 AM)DividendGarden Wrote:(07-22-2014, 10:34 AM)Roadmap2Retire Wrote: I am starting to look at the defense sector more closely (after kicking myself for not picking up LMT last year when it was at the $125 level).
I feel you. I bought NOC in 2012 in the high $50's, but I only bought one share! My plan was to monitor it over time and add to it. I added again in late 2013 in the $90's.
Here is the article I wrote at that time:
http://seekingalpha.com/article/1722792-...-right-now
Now, at $126/share, I'm not sure I want to add to it here, but my position is so small. It's my only holding in the defense sector, but I like LMT and GD for long-term holding.
LMT is a pure-play on the defense sector as far as I can tell (not that Im saying theres anything wrong with that), but from the first look at the overall valuation, I doubt they will be able to keep up the div growth going forward. This is just based on looking at the financials.
For e.g., the F35 has hit a lot of problems and has gone way over budget and countries dont want to spend money on it. There has been a lot of media coverage from the media blasting the Canadian government over the last couple of years who insist on buying the F-35 and have mislead the public on the price tag that its going to cost the taxpayers.
Ive gone off on a tangent there...but like I said earlier, I want to do some more research on what kind of technological innovation advantage one company might might have over others. Looking for reading material
On a side note, I found out during that article writeup that GE (somethign that I added last month to my portfolio) is ranked #20 in defense contractors with a revenue of $4B from defense contracts. Score!