LLL: Defense Electronics

Discussion in 'Trading' started by waggie945, Mar 23, 2004.

  1. For anyone that is interested in an extremely well-positioned company in the defense electronics sector, which just so happens to provide 80% of the "data-links" and secured communications to the Intelligence, Surveillance, and Reconnaissance (ISR) platforms like the U2, Shadow, Predator, and Global Hawk, check out today's presentation by Robert LaPenta of L-3 Communications (LLL) at the Lehman Brothers High Yield Bond & Syndicated Loan Conference.

  2. Up from $54.88 intra-day.

    Hope some ET members made some money on this one!

  3. wadef


    LLL has a great looking chart - strong move despite a bad market over the last few days. Too bad the market's volume looks like it's going to be lower than yesterday.
  4. LLL has a tremendous product line at great "organic" growth that is not subject to the big-time "risk" that the PRIME contractors like NOC, LMT, and GD have when so much of their earnings come from huge Platforms like the DDX, F-22, etc.

    Product mix is 65% defense electronics and 35% commercial.
    CASH FLOW north of $400 million this year.

  5. wadef


    Sounds like you're long already and out of ammo save good pr.
  6. Been long "size" since 1998 my friend.

  7. Mecro


    I should try trading it intraday. Makes moves.
  8. wadef


    Waggie, I've noticed from reviewing some of your earlier posts that you used to work for Paul Tudor Jones and Victor Sperandeo. That's experience I can only dream of.

    You've also posted recently that the DOW's pullback so far has lasted 28 days, and that the median bull market correction is 46 days (sounds like VSperandeo). I believe VS says in his first book that early stage bull markets tend to last a couple of years (my memory may be incorrect, though).

    Therefore I conclude that you wouldn't be surprised if the markets show weakness for another three weeks or so before resuming a move upwards.

    (As an aside, I suppose it would be interesting to know what the standard deviation is in days for bull market corrections. If it were 10 days, you'd know that about 95% of corrections are over after 66 days)

    However, I'm surprised to see you've held LLL for 5 years because I thought Sperandeo was a short-term/intermediate term trader.

    I've noticed that there are quite a few stocks that appear to be setting up nicely despite the market's recent action, such as UHCO, LTD, MAS.

    Meanwhile, stocks that I had owned in late '03 and sold, such as ET (took profit), PGH (cut loss), and ADM (took profit earlier than I wanted), look pretty dreadful. Comments?
  9. The stock is an investment, and not a short-term trade which has nothing to do with my trading philosophy. Making new highs for the move.

    $56.80 last

  10. Continuing to act well, trading $57.86 last and +.91

    The stock is now over +5% for the week and has totally outperformced the DJI and S&P 500.

    #10     Mar 26, 2004