DynCorp International, Inc. (DCP)

eps acceleration&growth / value / recent price strength (4w)

DynCorp is a government contractor specializing in policing, security, training, and recently won a piece of the lucrative LOGCAP IV base logistics contract. With good growth potential at a bargain price, it is worth a look for value investors.

http://www.magicdiligence.com/articles/dyncorp-2009-10-13

strong 5 year ROE& profit margin improvement and still at reasonable PE ratios

Generally bullish on this sector. Withdrawal of troops from Iraq will create a private security void for a country that's oil rich and heavily funded by the US.

ln

Evil elements:
Private security contractors have become the fastest-growing sector of the global economy during the last decade—a $100-billion-a-year, nearly unregulated industry. DynCorp, one of the providers of these mercenary services, demonstrates the industry’s power and potential to abuse human rights. While guarding Afghan statesmen and African oil fields, training Iraqi police forces, eradicating Colombian coca plants, and protecting business interests in hurricane-devastated New Orleans, these hired guns bolster the security of governments and organizations at the expense of many people’s human rights.

DynCorp’s fumigation of coca crops along the Colombian-Ecuadorian border led Ecuadorian peasants to sue DynCorp in 2001. Plaintiffs argued that DynCorp knew—or should have known—that the herbicides were highly toxic.

In 2001, a mechanic with DynCorp blew the whistle on DynCorp employees in Bosnia for rape and trading girls as young as 12 into sex slavery. According to a lawsuit filed by the mechanic, “employees and supervisors were engaging in perverse, illegal and inhumane behavior [and] were purchasing illegal weapons, women, [and] forged passports.” DynCorp fired the whistleblower and transferred the employees accused of sex trading out of the country, eventually firing some. None were prosecuted.

From http://karim.gnn.tv/blogs/11333/Report_The_14_Most_Evil_Corporations

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.

Unfairly punished. Fundamentals look strong. With new contracts, management is likely to raise guidance. Target price $24.

My son is going to work for them and I have to rate them highly.

Since DynCorp International (DI) went public, they have hired a wealth of talented personnel and have revamped their corporate philosophy. These two factors are the foundation of DI winning numerous contracts from the US DOD, State Department and foreign countries. They are winning contracts away from companies that are considerably larger and are now considered a formiable competitor in the government services sector.

With each new contract DI wins it becomes a more attractive aquisition for a large cap company.

LOGCAP and INSCOM contracts will boost when work orders are released

Positioned to take INSCOMM Language Contract for Iraq. $4.5 Billion over five years. Do the math. If they dont get it, dump it.

This company is the new company heading L3 Army Logistics contract. I see this one taking off in the next coming year!!!

This kind of company shuld be increase their sales, becouse the USA army and other european armies are going to use their service, so this kind of business have good chance of growth. This company is one of the best that I look.

Having the government back contracts and having a diverse business network allows newer companies like Dyncorp the change to have steady stable success in the future.

Compnay is in bed with the U.S military, as long as the military is around this company will make money

with the war and no end to it in sight and many other hot spot. war on crime and drugs. There will always be a need for agencies such as this. this could be a real good long term investment. if another occupation takes place even better.

War means Cash for some