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Triangle Traders Investment Meeting 2.10.2016

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Triangle Traders Investment Meeting 2.10.2016

  1. 1. Triangle Traders Investment Meeting 2.10.2016 Investment Opportunity: Boeing (The Boeing Company) NYSE: BA Lockheed Martin NYSE: LMT
  2. 2. Competitors  Lockheed Martin Corporation – largest defense contractor  SAIC/Leidos  Huntington Ingalls Industries Inc.  BAE Systems plc  L3 Communications Holdings Inc.  United Technologies Corporation  Northrop Grumman Corporation  Raytheon Company  General Dynamics Corporation
  3. 3. Boeing Company Info  Founded: Seattle, WA – July 15.1916 by William Boeing  Current Headquarters: Chicago, IL  Industry: Aerospace, defense  President/CEO: Dennis Muilenburg  Chairman: James McNerny  Vice Chairman: Raymond Conner  Divisions: Commercial Airplanes, Defense, Space & Security, Boeing Capital Engineering, Operations & Technology, Shared Services Group  Employment (May 2015): 162,730  Stock price (2.9.2016): $118.88 (-0.59/-.49%)  Stock Style: Large Core  Market Cap: 80.0 Bil  Net Income: 5.6 Bil  Sales: 97.0 Bil  Largest civilian plane builder/Second largest defense contractor
  4. 4. Lockheed Martin Company Info  Founded: March, 1995  Headquarters: Bethesda, Maryland (Washington, D.C)  Ticker Symbol: LMT (NYSE)  Chairman, President and CEO: Marillyn A. Hewson  Largest Military Defense Contractor  Employment: 116,000 est  Stock Price (2.9.2016): $215.98 (+1.45/+.068%)  Market Cap: 65.8 Bil  Stock Style: large core  Awarded 25.3 Bil in Military contracts for 2016  Products: F-22, F35 Lightening IIs  Bought Sikorsky in 2015 and will add 7.5 Bil in revenue  Now leading manufacture in combat helicopters as well as America’s premier defense contractor
  5. 5. Money Talks  Boeing and Lockheed Martin have been top 2 Military Defense Contractors for the past three years  Analysts believe this trend will continue for many years to come  $.16 to $.18 to Lockheed Martin and Boeing for every $1.00 in tax money Government spends in private contracting  Boeing shares cost 18 times earnings and pays shareholders a 2.5% dividend yield  Lockheed Martin shares cost 19 times earning and pays it’s shareholders a 3% dividend yield  Source: The Motley Fool
  6. 6. Investor Insight’s: Boeing  Boeing is the #12 broker pick out of 30 stocks making the Dow Jones Industrial Average  They have a 7 year backlog for new orders (contracted to build 5,600 aircrafts). Per money.usnews.com: this rates as a STRONG BUY.  Korean Air bought 30, 737 max aircrafts and 2, 777-300ER’s  737-9 unit cost is $116.6 Mil (USD)  777-300ER unit cost is $330 Mil (USD)  787-10 unit cost is $306.1 Mil (USD)  EVA Airways purchased  Target price of $165/share  Look to Asia for growth: 1 out of 4 planes built is sent to China  Do not be scared of low fuel costs: Airline companies are spending less money to fuel planes resulting in higher profits.  Consumer demand will push these companies to buy new planes
  7. 7. Investor Insight’s: Lockheed Martin  Lockheed Martin a strong buy: since Jan 2013, stock price has risen 130%  Rich history plus consistent defense contracts  Merging IT division with SAIC and CACI = $2 Bil in cash flow  13 year straight dividend payout  2003 dividend payout: $.12  Present: $1.65 (+1,275%)  Currently in backlog with orders for 2016  Will generate positive revenue for the next two years  Awarded a $262 Mil contract with US Air Force to Service Saudi Arabia’s F-15 sniper and targeting system and radars.  Won $528 Mil contract with Missile Defense Agency  Airforce, Navy & Marines to get F-35 Lightening II’s ($400 Mil contract)  Cyber security a second revenue stream  LMT target: $234.87
  8. 8.  Sources:  Motley Fool  Investor Place  Us News (Money)  NYSE  Wikipedia  Money Morning
  9. 9. Questions/Comments  Andrew Manzone  C: 919-600-4306  E: andrewmanzone@yahoo.com  Please call me if you have any comments/questions about this presentation  Constructive criticism is greatly appreciated (keep it positive)

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