I like certain stocks in the defense sector, especially the middle-tier ( not prime ) electronics defense contractor L-3 Communications. Buy L-3 today with a stop in at $61.50 for a long term "core" position. $1.2 billion in net free cash flow and corporate guidance of +10% nominal earnings growth for 2009 = $7.50 per share,; with 8% organic growth vs the 6% sector metric, $1 billion stock re-purchase over the next 2 years, and the smallest pension fund expense "headwind" in the entire defense sector. Do your own due-diligence.
I'm just afraid L-3 will come back to 61.50 and get you out and go up again without your "core" position
Got pushed down to 64.07 on the weaker opening . . . Now rallying back and trading -$1.00 at 66.17 as the Dow is still -390 points. Buy the dips.
It's Friday and after trading as low as 64.84 the stock is heading back up to the highs of the week . . . trading as high as 68.17 with 45 minutes left in the session. Ran into minor resistance at the 21-day MA yesterday just above $69 LMT, GD, and NOC are trading up as a group as well.