DynCorp International, Inc. (DCP)

I'm pretty familiar with most of the defense companies and have watched DCP for several years now [sold my shares long ago for modest profit]. Since the "new" wunderkind CEO, Ballhaus, took over last year there has been a major overhaul at senior management levels. However, it doesn't seem to be enough to cure the company's fundamental weaknesses. They just don't seem to be able to find the right balance of seasoned leaders who have both military and commercial experience and common sense. Far too many fat generals who, as in-house "buzz" have it, contribute nothing to the bottom line while drawing big salaries. The company seems to believe that senior military rank will do the trick.

Not to mention the credible, numerous rumors of top level sexual harassment cases, an incompetent and corrupt procurement arm, vastly over rated/paid managers overseas, management by sea gulls at all levels and consistent failure-to-perform problems.

One bright light, however, is the recent aviation support contract which takes DCP back to its original, core competency.

I believe that the stock is a probably a buy at around $11, but quick sell when it breaks $15.

I am into this stock for the same reason that I am into natural gas exploration. It is the coming thing in the energy
sector. Distribution will be important too. I look for underperformance for the near future. The stats are good and the dividend is outstanding.