Booz Allen Hamilton Inc. (NYSE:BAH)

CAPS Rating: 2 out of 5

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Player Avatar ddttox (< 20) Submitted: 4/3/2013 7:47:03 PM : Underperform Start Price: $10.74 BAH Score: -76.37

Booz Allen is going through very challenging times. They have just instituted significant pay cuts for mid level management and most of the talented folks they have are looking to leave as soon as they can find another position. The ones that are left are demoralized and only going through the motions. This will have a serious effect on growth in the coming years as these are the people who are counted on to win new business. Carlyle, who is the majority owner, is busy sucking the cash of of BAH as witnessed by the $6.50 and $1.50 a share special cash dividends issued last year. This combined with the fact that the government consulting market is shrinking and Booz has been unable to gain traction in the commercial market means that they are on a long term downward trend and possibly a death spiral.

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