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Company: Lockheed Martin (LMT)
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54%
agree
11 votes

  A Decreasing Defense Budget affects LMT's Profitability

Top Contributor: Lawrence Gu | Created when NYSE:LMT was $74.85 | Edit | History

The U.S. Department of Defense represents 85% of LMT's revenue. Therefore, the recent string of project cancellations, from the F-22's in July 2009 to the termination of the VH-71 Kestrel in October 2009, have hurt LMT's profits. Traditionally, the Democratic Party has been a strong advocate for a balanced budget; the Democratic Party taking the majority of both chambers leads one to question how deep the impact on LMT's long-run profitability.

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0%
agree
0 votes

  Marilyn Hewson not ready

Created when NYSE:LMT was $89.32 | Edit | History

This is a CEO with a very thin track record and now 2 of the top executive VPs have left her team. You have to wonder about this knee-jerk choice when Kubasik was ousted.

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0%
agree
1 votes

  LMT is tied too closely to political pressures

Top Contributor: Lawrence Gu | Created when NYSE:LMT was $81.16 | Edit | History

Investors should show caution when trying to valuate LMT. A large margin of safety is necessary as LMT is a company that derives large portion of its revenues from the US government and its allies. Consequently, a souring of international relations has a doubling effect on an investor's portfolios. 1) It will taint the overall portfolio and 2) LMT holdings will be punished even more. One who invests LMT should therefore take caution to hedge such risk out.

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2%
agree
34 votes

  Pressure for fiscal responsibility could affect government contracts

Created when NYSE:LMT was $93.39 | Edit | History

Pressure for fiscal responsibility could result in the delay, reduction, or cancellation of certain government contracts.

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5%
agree
37 votes

  Proportion of sales to the U.S. Government has increased

Top Contributor: Scott Thorn | Created when NYSE:LMT was $93.39 | Edit | History

Proportion of sales to the U.S. Government has increased from 78% (2003) to 84% (2007), decreasing customer diversification.

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11%
agree
43 votes

  High pension costs loom on horizon

Created when NYSE:LMT was $93.39 | Edit | History

With the majority of its workforce set to retire, profits may be hurt by potentially high pension costs.

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