On April 5th, Adam Mszanski pitched Lockheed Martin, the number one defense contractor in the U.S, to the SMIF Class. The company has four main segments: Aeronautics, Missles and Fire Control, Rotary & Missile Systems, and Space Systems. Adam believed that Lockheed has room for much growth in the future due to many political catalysts during the Trump Presidency. For example, Adam foresees tax reductions, increases in defense spending, deregulation and increased global conflicts in the future. Therefore, Adam explained that when other countries increase their spending, Trump will react by further increasing defense spending. Moreover, Lockheed Martin has taken on more debt at lower rates than their competitors, has lower operational costs, strong revenue streams and increasing dividends.
Therefore, Adam recommended buying 75 shares of LMT at market price. This motion was denied as the class felt that they needed to see more information and competitor comps before coming to a final decision.