Marc, while Litton has some businesses that address the current technological revolution (optical connectors, lasers and GaAs wafers), these are very small parts of their major business in defense and long term, defense is not going to be a major growth industry (unless new major threats develop). So yes, it could get to around $52, but I fear the main trend is still down, and would not be surprised to see it in the mid 30' (just above book) before it makes a new highs. For channeling purposes, I prefer stock that have long term up channels, so, even if you make a mistake here or there, the trend will bail you out, until, of course, the trend changes... Of course, if you are looking for shorting, then the $49 to $52 area is a good bet and right now might be a good time for covering later in mid February or early March, IMHO.
Zeev |
