"We deeply regret the effect that sequestration is having on our dedicated and hard-working employees. For more than 100 years, our highly talented people have designed and built state-of-the art systems that deliver next generation technology vital to our nation's security and to the world. "While we await more specific direction from our government customers, we are concerned with the lack of progress toward a solution to reverse the negative impacts of sequestration. We continue to assess the likely impact that sequestration will have on our programs and have taken steps to manage its effect on our employees and our business.
"However, while we understand that the impacts are likely to play out over a period of time, we continue to believe that sequestration will lead to furlough in some situations and could trigger layoffs resulting inThe rest of the release can be found at
Worker Adjustment and Retraining Notificationnotices to thousands of our current employees. This is a very difficult time for our employees and their families, and the thousands of supplier companies that we depend on to support our customers' mission."
As the one-year chart above demonstrates, the share price of LMT has done well. Its year-over-year quarterly retained earnings growth skyrocketed for most of 2012 but cooled off in the fourth quarter. The share price seems to indicate it is picking up again in the first quarter of 2013.
Oddly it looks very different than LMT's, and until we're assured that the quarterly retained earnings growth is heading north again, I'd be cautious about owning the shares of RTN. This is doubly concerning in light of the "sequester" situation. When the "all clear" announcements are made both these stocks could move higher. For dividend-hungry investors, LMT and RTN are worth watching and perhaps accumulating on any corrections. Both are top-notch at what they do and how they are managed. At the time of publication the author had a position in LMT. Follow @m8a2r1 This article was written by an independent contributor, separate from TheStreet's regular news coverage.