Stock to Sell #4 – Lockheed Martin Corp. (LMT)
Lockheed Martin Corp. (NYSE:LMT) is the world’s largest military weapons manufacturer and a significant supplier to NASA. Cutbacks in both military and NASA spending from the 2011 Budget Control Act and defense budget “sequestration” are expected to put pressure on LMT’s earnings for several years.
The stock has broken down from a bull channel on heavy volume. Although LMT could have temporary recovery rallies, it is now in a downtrend and should be sold. The next support is at $80 with resistance to rallies at $90.