DynCorp International, Inc. (DCP)

TRGoodvsEvil (< 20) Submitted: 7/3/2009 6:53:00 PM : Start Price: $16.15 DCP Score: +29.85

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

Wazzdown (95.36) Submitted: 6/26/2009 8:11:44 AM : Start Price: $16.31 DCP Score: +26.92

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.