Booz Allen Hamilton Inc. (NYSE:BAH)

InvestWhatWorks (90.41) Submitted: 12/6/2011 9:57:41 AM : Start Price: $15.57 BAH Score: -7.53

In 2008, Booz Allen Hamilton was spun-off from its parent company. Until very recently, Booz Allen Hamilton was under three-year non-compete clause with its former parent. That non-compete clause confined the company to offering its consulting services only to the US-government (while its former parent company was free to offer its services to domestic and international private-sector companies and to governments outside of the United States).

That non-compete clause expired on July 31, 2011. Booz Allen Hamilton is now free to expand its presence outside of the US-government public-sector. The company will now begin to offer its consulting services to domestic and international private-sector companies and to government-entities outside of the US.

I believe Booz Allen Hamilton is currently being overlooked. The company should do very well in the coming years. Its return to the private-sector and international government-entities will bring with it greater profits. Additionally, private-sector consulting will give the company exposure to much higher-margins (compared to public-sector consulting). These factors should help pave the way for Booz Allen Hamilton to initiate a dividend in the future.