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[RT] Re: remember Saddam, China. Trading rule.



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On Mar 18, 12:32pm, Prosper wrote:
> 
> I haven't got a clue as to how to trade this sort of information except that
> the usual rules apply. What is the first rule of trading success? How about,
> always preserve your capitol.

I checked out LMT to see if the scary posturing in China
was having any effect on gold (none), or defense stocks
(apparently none).

Although I don't usually invest in defense stocks, I was
surprised to see LMT sitting near its lows, with div. yield 2.44%.
Earnings growth estimated +18% next year, and +10% for 5 years,
vs. S&P +11% and +12.5% respectively.

LMT is trading at a PEG ratio of just over 1.0, and the S&P is trading
at 2.0 (has twice the P/E).  LMT yields twice the dividend of the S&P
as well.  Might be an interesting hedge at this point.