This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer on Why He Added Lockheed Martin to His Portfolio

9/05/15 9:00 AM EDT
Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust portfolio, and research director Jack Mohr discuss why they recently initiated Lockheed Martin (LMT). Mohr says although they already own Honeywell (HON), they wanted 'more direct exposure' in the aerospace and defense sector. Cramer says the macro story is important, explaining that 'the United States has withdrawn from being the world's policeman...[and countries that are hotspots] don't have the U.S. protection anymore so what do you do? You have to arm yourself. Who do you call? You don't call Russian arms dealers or even French. You go to Lockheed Martin, General Dynamics (GD) and you go to Northrop Grumman (NOC) maybe you go to Textron (TXT), Raytheon (RTN) is good too but Lockheed Martin has some particular financial characteristics that we love.' Jack Mohr says, 'their cash flow generation is 115 percent of their net income...and then they take that cash flow....they give it back to the shareholders. They're committing to return at least 8 percent of their market cap each year...that's unbelievable.' Cramer says other than AutoZone, he's never seen anything like it. Cramer concludes, 'Lockheed Martin is so good into this weakness, it's in its own personal bull market.' Shares of LMT are up about 7 percent year-to-date. -- Get Cramer's top stocks with Action Alerts PLUS Trade with him FREE for 14-days.
Stocks in this video: LMTHONGDNOCTXTRTNAZO
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
Real Money Pro

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Trifecta Stocks

Trifecta Stocks analyzes over 4,000 equities weekly to find the elite 1% of stocks that pass rigorous quantitative, fundamental and technical tests.

Product Features:
  • Model portfolio
  • Trade alerts
  • Recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Growth Seeker

Bryan Ashenberg, using sophisticated stock screening and fundamental research, identifies potentially explosive small and mid-cap stocks.

Product Features:
  • Model portfolio
  • Small-cap and mid-cap focus
  • Intraday trade alerts
  • Weekly roundups
Options Profits

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
Top Rated Stocks Top Rated Funds Top Rated ETFs