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Me and LMT
I had owned it before and made a lot of money on it. Sold when its dividend yield went down low and used the proceeds to increase our portfolio income.
Put it on a watch list and started buying again when the yield went over 3% - that purchase was in January of 2021. Added a bit to it, and then last month I added quite a bit. Funds invested equals a full weight position. The 15% gain in the position brought it overweight.
I am happy to have it back in the portfolios. SSD says it is still probably undervalued, but my plan is just to watch it grow and collect dividends for some time.
Cost basis $341.87
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Do you know where they are on pension liabilities? I only ask because they took a charge on an earnings report in 2021 and said it would trim earnings again for a few quarters in 2022. And here we are with the stock up $50. It's common for legacy industrials that used to have generous pensions. Just curious if it came up in your research?
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I love LMT. I think a lot of the recent price increase has been due to the Russia/Ukraine situation, and I'm kinda sad that it bounced up. I bought a lot under $350 and I'm quite happy with my LMT position, but I wouldn't mind being able to buy even more below $350.
LMT really has what it takes to be awesome in the long-term. I've talked about this before, but the F-35 program, while it has had it's difficulties, has grown to be an absolute game changer. I think this situation is unprecedented in the history of military aviation, give it a decade or two and we are looking at a situation where the large majority of the western world will be equipped with the same fighter. If sales to some slightly dodgier countries get approved in the future, then it's likely the F-35 will be the #1 fighter in the world when looking at the number of aircraft produced.
It's not only about the sale of a plane, it's about the rest of the stuff that comes with it. Maintenance, updates, new weapon systems, training etc. Most of these will lead to a significant amount of income for the next several decades, if not longer.
Also, we shouldn't forget just how actively LMT is involved in anything space related. It is another strong trend of the future, and LMT is very well positioned to benefit greatly from the increase in economical activity in space.
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The indexes have outperformed LMT etc by a wide margin for years now, but buying a hard dip in pretty much any major defense contractor has been rewarded. They are very good DGI stocks as long as you don't chase them. I think Kerim's basis is well under $100 for LMT.
