BloggingStocks

Cramer on BloggingStocks: 'Bailout' is not a dirty word

Jim Cramer — 2008-07-07T08:52:00+00:00

Filed under: Ford Motor (F), General Motors (GM), Market matters, JPMorgan Chase (JPM), Bank of America (BAC), Comerica Inc (CMA), Wachovia Corp (WB), Washington Mutual (WM), Lockheed Martin (LMT), Cramer on BloggingStocks

From TheStreet.com Network

TheStreet.com's Jim Cramer says beyond the long tradition, it's what we need now as a nation.

How did "bailout" become such a curse? The U.S. has a long history of bailouts, the big ones being most successful. The U.S. government saved Lockheed (NYSE: LMT) (Cramer's Take) in 1974 -- we need all the competition in military procurement we can get, considering how precious little of it there is -- so it's hard to judge that one a loser. The feds profited from the Chrysler bailout five years later .Not just profited, but had a huge success. The Mexican bailout in the 1990s saved that country's financials and gave the U.S. a tidy profit. The Resolution Trust bailout worked perfectly in restoring the banking system at a small cost, in retrospect, to the chaos we could have had.

Yet here's JPMorgan (NYSE: JPM) (Cramer's Take) taking on a lot of risk, in retrospect, given the junk nature of Bear's portfolio, and there's a tremendous amount of hand-wringing about it?

I say get used to it. General Motors (NYSE: GM) (Cramer's Take) and Ford (NYSE: F) (Cramer's Take) can't cut their way out of their jam, not with the F Series down 40% and GM still paying more for its labor force than it thought would have to. Both have strong, salvageable franchises, but they need capital, a la Chrysler in 1979. I think the feds should give it to them with contingencies that allow the U.S. to profit from any rebound.

Or tell me how much less it would cost to set up a Resolution Trust of bad mortgages to get the banks, outfits like Comerica (NYSE: CMA) (Cramer's Take) and National City (NYSE: NCC) (Cramer's Take) and Washington Mutual (NYSE: WM) (Cramer's Take), or even Wachovia (NYSE: WB) (Cramer's Take) and Bank of America (NYSE: BAC) (Cramer's Take), to be able to rebuild capital now that the Fed isn't going to take short-rates down to where these banks can arbitrage their deposits on the two-year portion of the yield curve.

Every politician seems to hate business just enough and wants to punish the ne'er-do-wells to the point where you have to wonder what's going to happen if everything goes bad.

Is it really the fault of the auto companies that they didn't adjust to an oil price that doubled? Is it really the fault of the bank that mortgages are defaulting at such high rates? More important, SHOULD WE CARE ABOUT THE FAULT AT ALL?

Morally, I can see the easy case for laissez-faire: let's just start all over again. But financially, the benefits of bailouts for our country are demonstrable and not at all giveaways if structured intelligently.

Of course, the idea that President Bush or Treasury Secretary Paulson would even think like this is just preposterous. They are still working on voluntary solutions to the housing crash, which is a huge joke and we all know it.

They won't even do what they have in their power to do to help the American consumer: simply say that they are restudying the ethanol mandate in light of higher food prices. So the idea that they would attempt to discuss a bailout of the nation's two largest automakers and the nation's largest banks doesn't compute.

But that's what has to happen if we are going to turn things around without a severe recession, and the fact that the "bailout" has become a political third rail in light of the past successes is just incredible.

It needs to be back on the agenda for all of these companies. A bankruptcy for all the companies included in this story would be catastrophic for America.

Yet, in slow-motion, we inch toward it every day.

When are we going to admit, as a nation, as a government, that the current strategy is going to lead to financial chaos?

Does anyone care?

Obviously not, or these issues and the bailouts would at least get on the agenda, where they belong, in light of the trajectory of the stocks of a litany of walking-dead entities in the American firmament right now.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.

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AeroVironment (AVAV): Share price cycles in bullish 'flag' formation

Larry Schutts — 2008-07-02T13:55:00+00:00

Filed under: Earnings reports, Ford Motor (F), Lockheed Martin (LMT), Technical Analysis, Delta Air Lines (DAL), Stocks to Buy

AeroVironment (NASDAQ: AVAV) is engaged in the design, development and production of unmanned aircraft systems and electric energy technologies for various industries and governmental agencies. The company's small aircraft are used by U.S. Department of Defense customers to deliver real-time reconnaissance, surveillance, and target acquisition to tactical operating units. Its electrical products include recharge systems for industrial vehicle batteries and power processing test equipment. Ford Motor (NYSE: F) and Delta Air Lines (NYSE: DAL) are on the company's commercial customer list. Lockheed Martin (NYSE: LMT) is a major competitor.

The firm pleased investors last week, when it reported fiscal Q4 EPS of 30 cents and revenues of $64.3 million. Analysts had been expecting 27 cents and $59.3 billion. In discussing the successful quarter, the CEO pointed to strength in demand for unmanned aircraft and related support services. Management also guided FY09 revenues to about $258.9-$269.7 million, versus Street consensus of $259.44 million. Funded backlog at the end of Q4 was up 35% from the same point last year.

The stock popped on the news and then began defining a bullish "flag" consolidation pattern. Stocks often leave flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with four "strong buys", one "buy" and four "holds". Analysts see a 22% average annual growth rate, through the next five years. The AVAV Price to Sales ratio (2.60), Price to Book ratio (3.30), Sales Growth rate (26.82%), Operating Margin (13.18%), Return on Assets (11.53%) and Return on Investment (13.90%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 45% of the outstanding shares. Over the past 52 weeks, the stock has traded between $17.97 and $28.70. A stop-loss of $23.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Obama & McCain may go non-defensible

Sheldon Liber — 2008-06-30T13:45:00+00:00

Filed under: Major movement, Analyst reports, Forecasts, Market matters, Citigroup Inc. (C), Boeing Co (BA), Goldman Sachs Group (GS), Lockheed Martin (LMT), Politics, Headline news

It was only last week that Goldman Sachs (NYSE: GS) caused havoc in the stock market (or at least lead the charge) downgrading Citigroup Inc.(NYSE: C), and General Motors (NYSE: GM) among others, but now they have started to express concern that some of the defense sector stocks may be vulnerable to the next president's ax.

Bloomberg is reporting that last month Goldman Sachs was issuing warnings to their clients about the fact that Barack Obama and John McCain both may seek to reduce or end big ticket defense purchases such as Lockheed Martin (NYSE: LMT) F-22 fighter and the Army's $159 billion Future Combat Systems, a modernization plan jointly managed by Boeing Co (NYSE: BA) and SAIC Inc.

It was only a few weeks ago I posted Chasing Value: General Dynamics & Raytheon: The defense does not rest and things continued to look bright until a few days later, perhaps after the GS behind the scenes warning started to have an impact on the market that the sector took a mysterious swoon -- now I know why.

If Goldman Sachs, one of the few investment houses with any credibility left, makes a move everyone else seems to want to get out of the way.

I have viewed the defense sector favorably this year and will not abandon ship because GS is getting cold feet. They have been rather negative on everything lately and I do not think the (stock) world is coming to an end.

The Bloomberg article notes that while some programs will be cut others will be added. It is all a guessing game as either presidential candidate will want to review the entirety of defense expenditures in a new administration.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of GD.

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Analyst initiations: BMC, SMOD and ENTR

Eric Buscemi — 2008-06-20T11:25:00+00:00

Filed under: Analyst reports, Lockheed Martin (LMT), Analyst initiations, General Dynamics Corp (GD), Northrop Grumman (NOC)

MOST NOTEWORTHY: BMC Software, Smart Modular and Entropic Comm were today's noteworthy initiations:

Stanford initiated BMC Software (NYSE: BMC) with a Buy rating and $45 target. The firm highlights the company's broad product portfolio and configuration management database leadership and thinks margin expansion should continue.
ThinkPanmure assumed Smart Modular (NASDAQ: SMOD) with an Accumulate rating and $5.50 target. The firm expects better DRAM pricing but expects SMOD to experience some headwinds with Hewlett-Packard (HPQ) losing share in the server market.
Broadpoint expects Entropic Comm (NASDAQ: ENTR) to benefit from the adoption of applications that allow video through numerous devices, especially high definition and data content. Shares were started with a Buy rating and $6 target.

OTHER INITIATIONS:

Banc of America initiated General Dynamics (NYSE: GD), Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC) with Buy ratings and targets of $100, $120 and $80, respectively.
Intercontinental Exchange (NYSE: ICE) was initiated with a Buy rating and $150 target at UBS.
Intrepid Potash (NYSE: IPI) was assumed with a Buy rating at Merrill Lynch.

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Chasing Value: General Dynamics & Raytheon: The defense does not rest

Sheldon Liber — 2008-05-27T14:32:00+00:00

Filed under: Products and services, Lockheed Martin (LMT), Chasing Value, Stocks to Buy, Technology, General Dynamics Corp (GD), Raytheon Company (RTN), Best Stocks for 2008

When it comes to defense spending over the last nine years, there has not been any rest. As I have reported on numerous occasions, the defense sector has beaten the market indices year after year. This year is no exception and two of my recommendations remain ahead of the market and are reporting new contracts every day.

Today, theThe Arizona Republic reports [registration required] that General Dynamics (NYSE: GD) is to receive billions in contracts for its C4 Systems as part of the Army's extensive modernization plan. The company is building a communications network for the Army and is the lead contractor with Lockheed Martin (NYSE: LMT) for a wireless network that will deliver mobile connectivity to soldiers on the field.

General Dynamics is up about $10 (12.5%) in the last year and offers a 1.5% dividend yield. Its current P/E is 16.5 and its P/S is 1.33 with a 15% ROIC. It opened today at $90.58.

The Times of Shreveport, La., writes that Raytheon Company (NYSE: RTN) recently acquired S.I. Government Solutions, a small Florida software company that specializes in protecting government and commercial data. The deal is estimated to be worth $35 million. The acquisition is expected to give Raytheon the ability to sell more services to its DOD clients.

Raytheon is up about $7 (12.7%) over the last twelve months and you can add the 1.8% dividend yield to that. It has a P/E of 15 and a P/S of 1.26 and almost a 19% ROIC. Raytheon opened at $62.78.

Everything these companies make is very high-tech but you will not find them mentioned in that investment category -- that will be the subject of another story.

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Boeing loses four contracts in three months

Peter Cohan — 2008-05-16T08:56:00+00:00

Filed under: Boeing Co (BA), Lockheed Martin (LMT)

Bloomberg News reports that Boeing Co. (NYSE: BA) has a whole lot of losing going on. Yesterday, Boeing suffered its fourth straight defeat in three months on a U.S. defense contract. This loss represents $41 billion in lost revenue.

Here are the four contracts:

Yesterday. Lockheed Martin (NYSE: LMT) the world's largest defense company, beat Boeing for a $1.46 billion U.S. Air Force award to build a new network of navigation satellites for military and civilian use. The Air Force said it reviewed five years of past performance for both contractors. Boeing has yet to launch a single satellite under its most recent GPS contract from April 1996, and in 2006 the company forfeited $21.4 million and replaced the program's managers after delays and cost overruns.
February 2008. EADS, parent of Airbus and Northrop Grumman (NYSE: NOC) won a $35 billion tanker contest for the Air Force. I've spilled much electronic ink on this one -- it looks like the Air Force changed the specifications for the project but only told EADS about the change.

April 2008. Northrop won a $3.74 billion Navy unmanned spyplane order against Boeing. Bloomberg News reports that Captain Robert Dishman, the U.S. Navy's program manager, said at the Pentagon in Washington that Northrop's Global Hawk is "a highly capable air vehicle."
March 2008. Lockheed beat Boeing for a $766 million radio contract.

What is going on here? There is a different reason for each of Boeing's losses. Clearly the CEO cannot get heavily involved in the details of each bid. So,he needs to appoint people who can take charge of the programs and create a way to follow up on what they're doing so if there's a problem that requires his attention, he can do something to fix it. Unfortunately, it's too late for Boeing on these four programs except the Tanker one which is still under review.

The Seattle Times speculates that there are two Boeings: the Defense and the Commercial. The Defense is clearly having problems winning bids. But the Commercial, while winning many new orders, is struggling to deliver its 787 after numerous delays. There are no easy answers to Boeing's problems. But I believe Boeing's CEO is determined to solve them. Whether or not he succeeds remains to be seen.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He is writing a book about Boeing and has no financial interest in the securities mentioned.

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Finmeccanica buys DRS as foreign firms seek U.S. defense contracts

Zack Miller — 2008-05-13T13:03:00+00:00

Filed under: International markets, Deals, Boeing Co (BA), Lockheed Martin (LMT)

According to an article on Bloomberg, "European defense contractors have sought work and acquisitions in the U.S., where military spending has grown faster than in their home markets. BAE Systems Plc, Europe's largest weapons maker, bought Jacksonville, Florida-based Armor Holdings Inc., the biggest maker of armor for Humvee transports, last year for more than $4.1 billion."

Now an Italian firm is bidding $5.2 billion for DRS Technologies (NYSE: DRS). According to the same article in Bloomberg, the acquiring firm, Finmeccanica, makes carbon-fiber frames for Boeing Co. (NYSE: BA)'s 300-seat 787 Dreamliner, and its AgustaWestland helicopter division has a supply contract with Lockheed Martin Corp. (NYSE: LMT) for the U.S. presidential fleet. DRS makes flight recorders, sensors and thermal-imaging devices that are used on U.S. military helicopters and ships.

Finmeccanica is partly owned by the Italian government. An acquisition like this rounds out the Italian defense supplier's product-line and positions it well to penetrate U.S. military spending. Much of the premium paid by the Italians has been realized already as the venerable Wall Street Journal reported of the possible deal last week.

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

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Newspaper wrap-up: Lockheed expected to win $1.8B contract for navigation satellites

Laurie Pasternack — 2008-05-13T08:10:00+00:00

Filed under: Newspapers, Magazines, Boeing Co (BA), Morgan Stanley (MS), Amer Intl Group (AIG), Lockheed Martin (LMT)

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.

OTHER PAPERS:

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.

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Avialec International acquired by Kapco-Valtec

Gary E. Sattler — 2008-05-05T16:50:00+00:00

Filed under: Deals, Press releases, Industry, Competitive strategy, Boeing Co (BA), Lockheed Martin (LMT)

Focus LLC, investment banking service provider, has announced the acquisition of U.K. based Avialec by Kapco-Valtec, in a move aimed in part at expanding Kapco-Vatec's marketing base. Avialec, based in Petersfield, England, is a provider of electrical components to the aerospace industry. Building on eight years of growth, Avialec company leadership sought the benefit of increased aerospace industry clout which Kapco-Valtec presents.

Barrie Prescott, CEO of Avialec stated in the Focus LLC press release, "I had decided it was time to put Avialec under the wing of a larger progressive organization with financial firepower to realize the many opportunities before us ... FOCUS was the perfect firm to help us realize our goals."

Kapco-Valtec, a leader in aerospace supply chain management, shall provide market leverage for Avialec to realize it's expected growth potential, while gaining the benefit of greater exposure to Avialec's major accounts in the U.K. Likewise, Kapco-Valtec shall provide broader exposure of Avialec to U.S. aerospace accounts.

The Focus LLC investment bankers press release stated: "As is the case with the growing number of international M&A transactions, this deal is a win-win for both companies. We were pleased to be able to complete the transaction in just over four months, said Manan Shah, a FOCUS Partner."

For further information regarding this acquisition and the services of Focus LLC, please visit the Focus website at www.focusbankers.com.

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Teledyne Technologies (TDY): Share price defines bullish 'flag'

Larry Schutts — 2008-05-01T10:10:00+00:00

Filed under: Earnings reports, Boeing Co (BA), Lockheed Martin (LMT), Technical Analysis, Stocks to Buy, Northrop Grumman (NOC), Raytheon Company (RTN)

Teledyne Technologies (NYSE: TDY) manufactures sophisticated electronic components, instruments and communications products. These include defense electronics, data acquisition and communications equipment for airlines and business aircraft; monitoring and control instruments for industrial and environmental applications; and subsystems for wireless and satellite communications. The firm also provides systems engineering and information technology services for defense and space applications; manufactures general aviation and missile engines; and makes on-site gas and power generation systems. Clients include Boeing (NYSE: BA), NASA and the U.S. Air Force. Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and Raytheon (NYSE: RTN) are competitors.

The company pleased investors last week, when it announced Q1 EPS of 77 cents and revenues of $451.8 million. Analysts had been looking for 66 cents and $424.6 million. The CEO noted that it was the twenty-fifth consecutive quarter of year-over-year earnings growth. Management also guided Q2 EPS to 72-74 cents (74 cent consensus) and FY08 EPS to $2.98-$3.06 ($2.93 consensus).

TDY shares popped on the news and are now forming a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with two "strong buys", three "buys" and one "underperform". Analysts see a 15% average annual growth rate, through the next five years. The TDY P/E ratio (19.67), Price to Sales ratio (1.20), Price to Book ratio (3.59), Price to Cash Flow ratio (14.13), Sales Growth rate (17.17%) and EPS Growth rate (35.09%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 86% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $42.86 and $59.18. A stop-loss of $50.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Earnings highlights: Ford, Boeing, McDonald's, PepsiCo, JetBlue and others

Trey Thoelcke — 2008-04-27T11:40:00+00:00

Filed under: Earnings reports, Starbucks (SBUX), PepsiCo (PEP), Ford Motor (F), McDonald's (MCD), Halliburton (HAL), Boeing Co (BA), Hershey Co (HSY), Coach Inc (COH), ConocoPhillips (COP), Yum Brands (YUM), duPont(E.I.)deNemours (DD), Lockheed Martin (LMT), U.S. Steel (X), UAL Corp (UAUA), Dow Chemical (DOW), JetBlue Airways (JBLU), Goodyear Tire and Rubber (GT), Delta Air Lines (DAL)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

American Axle & Manufacturing Holdings Inc. (NYSE: AXL) reported a strike-related Q1 loss.
Arch Coal Inc. (NYSE: ACI) Q1 profit tripled on increased demand and higher prices.
Boeing Co. (NYSE: BA) posted better-than-expected earnings despite Dreamliner delays.
Coach Inc. (NYSE: COH) better-than-expected quarter didn't impress Jim Cramer.
ConocoPhillips (NYSE: COP) reported Q1 earnings and revenue above analysts' forecasts.
Delta Air Lines Inc. (NYSE: DAL) reported a big loss on a one-time charge and fuel costs.
Dow Chemical Co. (NYSE: DOW) posted a smaller-than-forecast profit drop and predicted a good Q2.
EI DuPont de Nemours & Co. (NYSE: DD) Q1 earnings rose 26% but missed expectations.
Ford Motor Co. (NYSE: F) surprised Wall Street by swinging to a profit in the first quarter.
Goodyear Tire and Rubber Co. (NYSE: GT) easily surpassed analyst estimates for the first quarter.
Halliburton Co. (NYSE: HAL) Q1 earnings and revenue rose due to international growth.
Hershey Co. (NYSE: HSY) profit fell but was in line with analysts' expectations.

JetBlue Airways Corp. (NASDAQ: JBLU) reported a narrower-than-expected loss in the first quarter.
Lockheed-Martin Corp. (NYSE: LMT) posted solid Q1 results and raised its full-year outlook.
McDonald's Corp. (NYSE: MCD) easily beat Q1 estimates due to gains overseas.
Northwest Airlines Corp. (NYSE: NWA) reported a larger-than-expected loss due to fuel costs.
PepsiCo Inc. (NYSE: PEP) posted solid Q1 results that were merely inline with expectations.
Pepsi Bottling Group (NYSE: PBG) earnings were flat, but beat Wall Street expectations by a penny.
Potash Corp. of Saskatchewan Inc. (NYSE: POT) posted strong results on strong demand and price hikes.
Sonoco Products Co. (NYSE: SON) reported better-than-expected Q1 results and revised guidance.
Starbucks Corp. (NASDAQ: SBUX) preliminary Q2 results were lower than analyst's expected.
3M Co. (NYSE: MMM) beat earnings expectations and reaffirmed its guidance.
UAL Corp. (NASDAQ: UAUA) posted a worse-than-expected Q1 loss on rising fuel prices.
US Steel Corp. (NYSE: X) better-than-expected quarter didn't impress Jim Cramer.
Yum! Brands Inc. (NYSE: YUM) Q1 profits soared on overseas strength, and raised its guidance.

Also, Jim Cramer discusses "crummy lenders" and Jonathan Berr wonders if Ford's turnaround is for real. Joseph Lazzaro considers Citigroup Inc. (NYSE: C) as a barometer of the economy. One analyst thinks financials may have hit bottom and it may be time to buy, and Jon Ogg looks at what short sellers are making of tech stocks. Ted Allrich discusses what to sell/what to buy.

Upcoming results to watch for include Verizon Communications (NYSE: VZ), Tyson Foods (NYSE: TSN), CBS Corp. (NYSE: CBS), Countrywide Financial (NYSE: CFC), U.S. Steel Corp. (NYSE: X), Office Depot (NYSE: ODP), General Motors (NYSE: GM), Procter & Gamble (NYSE: PG), Kraft Foods (NYSE: KFT), Starbucks (NASDAQ: SBUX), Time Warner (NYSE: TWX), Comcast (NASDAQ: CMCSA), Exxon Mobil (NYSE: XOM), and Chevron (NYSE: CVX).

Visit AOL Money & Finance for more earnings coverage.

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Cramer on BloggingStocks: Pools of capital keep retelling the credit story

Jim Cramer — 2008-04-24T09:45:00+00:00

Filed under: Market matters, Schlumberger Limited (SLB), Citigroup Inc. (C), Boeing Co (BA), Merrill Lynch (MER), Federal Natl Mtge (FNM), Lockheed Martin (LMT), Honeywell Intl (HON), Lehman Br Holdings (LEH), Stocks to Buy, Housing, Cramer on BloggingStocks, MBIA Inc (MBI)

TheStreet.com's Jim Cramer says we know how it'll play out. Besides, there's money to be made elsewhere.

Nobody's dissing the credit crisis. We all see it. We know when it is back. We know that the write-offs for the banks and brokers and Fannie (NYSE: FNM) (Cramer's Take) and Freddie (NYSE: FRE) (Cramer's Take) will be gigantic if and when the Gang of Four (Ambac (NYSE: ABK) (Cramer's Take), MGIC (NYSE: MTG) (Cramer's Take), MBIA (NYSE: MBI) (Cramer's Take), PMI (NYSE: PMI) (Cramer's Take)) finally chokes to death. But we also know that Boeing (NYSE: BA) (Cramer's Take) and Honeywell (NYSE: HON) (Cramer's Take) and Schlumberger (NYSE: SLB) (Cramer's Take) and Lockheed (NYSE: LMT) (Cramer's Take) and all of the other stocks that are on the move, not to mention anything oil and gas, just aren't that levered to the crisis. I know that is heresy for many of you. How could the crisis not bring everything to its knees?

Because these companies are basically foreign companies. They are just not that important to the credit crumble.

More important, we have all figured out the game. There are endless pools of really stupid/long-term capital that keeps coming in and bailing these clowns out. They either will never admit defeat -- some of the mutual fund holders, like "legendary" Bill Miller -- or they view everything as a bargain -- Corsair -- or they are easily talked into sovereign funds that think they have discovered Citigroup (NYSE: C) (Cramer's Take) at $5, a la 1990. Who knows? Maybe they have. Merrill Lynch (NYSE: MER) (Cramer's Take)? I'll buy 10 million shares!! Lehman (NYSE: LEH) (Cramer's Take)? $2 billion in preferred, please. And on and on.

What matters to me is that there seems to be no end to the amount of capital that will go to this sector. No end. Value!

Next thing you will hear there will be someone coming in, a Wilbur Ross, or some other grave dancer, and he will pants the current shareholders and "make out like a bandit" with the monolines. Blah blah blah.

It's not that the crisis is irrelevant. It's that there's so much money around that it has gotten to the "who cares?" status unless you hold common stock of the targets.

RELATED LINKS:

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.

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Lockheed Martin (LMT) soars one day after earnings

Brent Archer — 2008-04-23T13:58:00+00:00

Filed under: Major movement, Earnings reports, Good news, Industry, Boeing Co (BA), Lockheed Martin (LMT), Options, Technical Analysis

Lockheed Martin Corporation (NYSE: LMT) shares are trading higher just one day after the stock dropped on its earnings announcement. This morning, competitor Boeing (NYSE: BA) reported a first-quarter profit of $1.62 per share, beating analysts' predictions of $1.13 per share. Boeing's earnings may be soothing to investors who thought that yesterday's LMT earnings might be a mirage. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on LMT.

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.

LMT hasn't been below $95 since August and has shown support around $103 recently. This trade could be risky if defense spending starts to slow down, but even if that happens, this position could be protected by the support the stock might find from its 200- and 50- day moving averages, which are both currently around $103.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in LMT or BA.

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Lockheed Martin (LMT) falls despite strong earnings

Michael Fowlkes — 2008-04-22T10:22:00+00:00

Filed under: Earnings reports, Press releases, Competitive strategy, Adobe Systems (ADBE), Lockheed Martin (LMT), Economic data, Federal Reserve

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 $9.98 billion from $9.28 billion. In addition, the company lifted its full-year earnings forecast by 10 cents to $7.15 to $7.35 per share.

The company had good earnings, and lifted full year estimates, so why is the stock falling in today's action? It could be in reaction to the fact that the company's biggest division, its jet business, showed a drop in sales in the period. During the quarter, this business fell since Lockheed is in the middle of a transition from its older fighter jets to newer models such as the F-35 and F-22.

The rest of 2008 should continue to be tough on the company's jet business, and this is the primary thing that have investors spooked with today's earnings release. But despite the weakness in its aeronautics division, overall the company put in a good quarter, with increases in its other divisions: electronic systems, space systems, and information systems.

Analysts may also have been looking to see the company boost its earnings forecast by more than the 10 cents that it actually did. In a statement regarding this, the company's Chief Financial Officer, Bruce Tanner, blamed the recent interest rate cuts that the Federal Reserve has instituted.

In it's fight to fend off a looming recession, the Fed has been forced to reduce interest rates dramatically this year, and it is assumed that more cuts are on the horizon. The main impact that this has on companies such as Lockheed is the reduction in gains that the company is able to make on its cash holdings. Lockheed, with roughly $3 billion in cash on the books, has definitely noticed the pinch from lower interest rates.

Wall Street has looked past the company's estimate beating earnings numbers, and pushed shares of the company down a little over 2% so far in early trading.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

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Hottest stocks of 2008, worst places for homeowner debt & the cell sell - Today in Money 4/22

Allan Halprin — 2008-04-22T09:04:00+00:00

Filed under: Ford Motor (F), Home Depot (HD), McDonald's (MCD), AT and T (T), Netflix, Inc. (NFLX), Money and Finance Today, American Express (AXP), Lowe's Cos (LOW), Verizon Communications (VZ), duPont(E.I.)deNemours (DD), Lockheed Martin (LMT), News Corp'B' (NWS), UAL Corp (UAUA), Time Warner Cable (TWC)

In the News:

· McDonald's Profit Jumps 24%

· AT&T Profit Rises; Meets 1Q Expectations

· United Airlines Loses Over $.5 Billion in 1Q

· Weak Dollar Boosts DuPont

· RBS Reveals Another $12 Billion in Losses

· Lockheed Martin Rises After 1Q Earnings Report

· Ford: Betting Its Future on One Car

· Samsung's Long-Time Chairman to Step Down After Tax Evasion Indictment

· Drivers Feel Squeezed as Gas Prices Hit New Highs

· Wall Street Journal Top Editor Stepping Down

· Americans Pinching Pennies on Mother's Day This Year

· Horror Show at Netflix as Growth Slows

Hottest Stocks of 2008 (so far)
Some surprising names have performed well this year--and they have room to run. They include Allied Irish Banks, Home Depot, Lowe's, American Express, Time Warner Cable, Vulcan Materials and Verizon.
The Hottest Stocks This Year - Morningstar Stock Strategist

Worst Places for Homeowner's Debt
It's no secret that homeowners with subprime mortgages have taken a beating. Next up: those who have combined their mortgages with home equity loans, second loans or both. These combinations spell especially bad news for homeowners with the worst city being Sacramento. Other cities with high homeowner debt include San Diego, Washington DC and Colorado Springs.
Worst Cities For Homeowner Debt - Forbes.com

Renters Can't Escape Housing Crisis
The most brutal real estate slump in decades is reverberating through the rental market. Renters in properties that are being foreclosed on are being evicted. Homeowners forced into foreclosure are becoming tenants again and driving up rents. And renters not yet ready to buy a home - shut out by stricter lending rules or hoping to buy after prices fall still further - are creating a dynamic shift: Even as real estate is sputtering, the rental market is surging.
Renters can't escape housing foreclosure crisis - USATODAY.com

Justice for Air Travelers?
Ongoing chaos at the terminal prompts the government to revisit passenger's rights.
Amid Chaos, Government Revisits Air Passengers' Rights - SmartMoney.com

The Cell Sell
Cell phone advertising -- expected to rise tenfold by 2011, to $14 billion -- is getting more and more creative.
The Cell Sell - Mobile Advertising - Mobile Gaming | Fast Company

Project Rehab
Tim Gunn, the star of Project Runway, is trying to revive Liz Claiborne. Can he "make it work" or is it "auf Wiedersehen" for a once-great American fashion house?
Project Rehab -- Tim Gunn -- Liz Clairborne | Fast Company

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Market highlights for next week: HAL, T, LMT and MSFT reporting earnings

Eric Buscemi — 2008-04-18T15:31:00+00:00

Filed under: Earnings reports, Conventions and conferences, Annual meetings, Microsoft (MSFT), Yahoo! (YHOO), Amazon.com (AMZN), General Motors (GM), AT and T (T), Halliburton (HAL), Bank of America (BAC), Hershey Co (HSY), Mattel, Inc (MAT), Wendy's Intl (WEN), United Parcel'B' (UPS), Lockheed Martin (LMT), Delta Air Lines (DAL)

Monday, April 21

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.

Tuesday, April 22

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.

Wednesday, April 23

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.

Thursday, April 24

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

Friday, April 25

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

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LaBarge (LB): Shares define bullish 'flag'

Larry Schutts — 2008-04-08T11:50:00+00:00

Filed under: Good news, Schlumberger Limited (SLB), Lockheed Martin (LMT), Technical Analysis, Stocks to Buy, Northrop Grumman (NOC)

LaBarge (AMEX: LB) designs, engineers and manufactures electronic, electro-mechanical and interconnect systems for the broad industrial market. The firm's printed circuit boards, cables and electronic assemblies are used primarily in military communication systems, commercial aircraft, satellites and oil drilling equipment. Customers include Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and Schlumberger (NYSE: SLB).

The company pleased investors last month, when it guided fiscal Q3 EPS to 23-24 cents and Q3 revenues to $70-$72 million. The Street had been expecting 21 cents and $65.47 million. Management also predicted that Q4 results will be at least as strong as those achieved in Q3.

The issue popped on the news and has since been consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

The brokerage community recommends the shares with a "buy" and expects a 15% average annual growth rate, through the next five years. The LB P/E ratio (17.83), PEG ratio (1.19), Price to Sales ratio (0.80), Price to Book ratio (2.39) and Price to Cash Flow ratio (11.92) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 38% of the outstanding shares. Over the past 52 weeks, the stock has traded between $9.70 and $15.10. A stop-loss of $11.25 looks good here. Note that the firm is expected to report Q3 results in early May.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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

Sheldon Liber — 2008-03-26T17:19:00+00:00

Filed under: Other issues, Competitive strategy, Scandals, Lockheed Martin (LMT), Politics, Raytheon Company (RTN)

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.

In a country where politicians and industry titans alike speak about the need to invigorate U.S.'s leadership in the fields of science and engineering, this program provided a major vehicle (pun intended) toward stimulating interest, while bringing precious information to active scientists.

Perhaps naming rights could be sold to a major corporate sponsor. It seems to me that Raytheon Company (NYSE: RTN) or Lockheed Martin (NYSE: LMT) might have an interest in helping out. They make hundreds of millions of dollars from the various missile programs. Only today, Raytheon Technical Services Company LLC, a subsidiary of Raytheon, has received a $56.9 million contract extension to support facilities and operations for astronaut training at two NASA facilities.

There are so few federal programs that actually can claim any return on investment. To cut this one is tragic and foolish given the three trillion dollar federal budget recently submitted to congress .

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