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To: Alastair McIntosh who wrote (1187)7/13/2002 8:15:42 PM
From: Return to Sender  Respond to of 13403
 
I think LMT is much more overextended than V but V is much more likely to end up going down as a questionable accounting scandal laden bankrupt company.

V 6 month daily chart:

stockcharts.com[h,a]daclyyay[pb50,200!d20,2][vc60][iUb14!Uk14!La12,26,9]&pref=G

Lets assume the company manages to avoid additional bad press while the market rallies back a bit. If that happens then V could be a good short over 18.

table.finance.yahoo.com

table.finance.yahoo.com

That being said LMT may travel back over 70 briefly but if we do not have a war with Iraq or something along those lines I am inclined to agree with Eugene in saying LMT is tremendously overextended and has got to fall when money rotates out of that sector:

stockcharts.com[l,a]mhclyiay[d19950101,20020708][pb50!b200!d20,2!i!f][vc60][iUb14!Uk14!Ul14!Lp14,3,3!Lf!Lc20!Lah12,26,9]&pref=G

So summing up; They are probably both good short candidates at the right price. While V could indeed go bankrupt, LMT will not, but it seems way too overextended on a historical basis.

Short LMT at 70 and V at 18 maybe?

RtS