This document summarizes an investment opportunity meeting that discusses Boeing and Lockheed Martin. It outlines that Boeing and Lockheed Martin have been the top two US defense contractors for the past three years, and are expected to remain so due to continued government spending. Both companies pay dividends above 2.5% and have strong order backlogs and future contracts. Analyst targets for Boeing are $165 per share and for Lockheed Martin $234.87 per share.

1. Triangle Traders Investment
Meeting 2.10.2016
Investment Opportunity:
Boeing (The Boeing Company) NYSE: BA
Lockheed Martin NYSE: LMT

2. Competitors
 Lockheed Martin Corporation – largest defense contractor
 SAIC/Leidos
 Huntington Ingalls Industries Inc.
 BAE Systems plc
 L3 Communications Holdings Inc.
 United Technologies Corporation
 Northrop Grumman Corporation
 Raytheon Company
 General Dynamics Corporation

3. Boeing Company Info
 Founded: Seattle, WA – July 15.1916 by William Boeing
 Current Headquarters: Chicago, IL
 Industry: Aerospace, defense
 President/CEO: Dennis Muilenburg
 Chairman: James McNerny
 Vice Chairman: Raymond Conner
 Divisions: Commercial Airplanes, Defense, Space & Security, Boeing Capital
Engineering, Operations & Technology, Shared Services Group
 Employment (May 2015): 162,730
 Stock price (2.9.2016): $118.88 (-0.59/-.49%)
 Stock Style: Large Core
 Market Cap: 80.0 Bil
 Net Income: 5.6 Bil
 Sales: 97.0 Bil
 Largest civilian plane builder/Second largest defense contractor

4. Lockheed Martin Company Info
 Founded: March, 1995
 Headquarters: Bethesda, Maryland (Washington, D.C)
 Ticker Symbol: LMT (NYSE)
 Chairman, President and CEO: Marillyn A. Hewson
 Largest Military Defense Contractor
 Employment: 116,000 est
 Stock Price (2.9.2016): $215.98 (+1.45/+.068%)
 Market Cap: 65.8 Bil
 Stock Style: large core
 Awarded 25.3 Bil in Military contracts for 2016
 Products: F-22, F35 Lightening IIs
 Bought Sikorsky in 2015 and will add 7.5 Bil in revenue
 Now leading manufacture in combat helicopters as well as America’s premier
defense contractor

5. Money Talks
 Boeing and Lockheed Martin have been top 2 Military Defense Contractors for the
past three years
 Analysts believe this trend will continue for many years to come
 $.16 to $.18 to Lockheed Martin and Boeing for every $1.00 in tax money
Government spends in private contracting
 Boeing shares cost 18 times earnings and pays shareholders a 2.5% dividend yield
 Lockheed Martin shares cost 19 times earning and pays it’s shareholders a 3%
dividend yield
 Source: The Motley Fool

6. Investor Insight’s: Boeing
 Boeing is the #12 broker pick out of 30 stocks making the Dow Jones Industrial
Average
 They have a 7 year backlog for new orders (contracted to build 5,600 aircrafts). Per
money.usnews.com: this rates as a STRONG BUY.
 Korean Air bought 30, 737 max aircrafts and 2, 777-300ER’s
 737-9 unit cost is $116.6 Mil (USD)
 777-300ER unit cost is $330 Mil (USD)
 787-10 unit cost is $306.1 Mil (USD)
 EVA Airways purchased
 Target price of $165/share
 Look to Asia for growth: 1 out of 4 planes built is sent to China
 Do not be scared of low fuel costs: Airline companies are spending less money to
fuel planes resulting in higher profits.
 Consumer demand will push these companies to buy new planes

7. Investor Insight’s: Lockheed Martin
 Lockheed Martin a strong buy: since Jan 2013, stock price has risen 130%
 Rich history plus consistent defense contracts
 Merging IT division with SAIC and CACI = $2 Bil in cash flow
 13 year straight dividend payout
 2003 dividend payout: $.12
 Present: $1.65 (+1,275%)
 Currently in backlog with orders for 2016
 Will generate positive revenue for the next two years
 Awarded a $262 Mil contract with US Air Force to Service Saudi Arabia’s F-15
sniper and targeting system and radars.
 Won $528 Mil contract with Missile Defense Agency
 Airforce, Navy & Marines to get F-35 Lightening II’s ($400 Mil contract)
 Cyber security a second revenue stream
 LMT target: $234.87

8.  Sources:
 Motley Fool
 Investor Place
 Us News (Money)
 NYSE
 Wikipedia
 Money Morning

9. Questions/Comments
 Andrew Manzone
 C: 919-600-4306
 E: andrewmanzone@yahoo.com
 Please call me if you have any comments/questions about this presentation
 Constructive criticism is greatly appreciated (keep it positive)