ManTech International Corp (MANT)

bull

Its gotta bounce back after the recent fall; National security is always important.

gotta go up

In a bear market should trade under 30 (a conservative multiple of forward earnings). So it's overvalued for the current environment. Headed for a fall in the next leg of this bear market. Software isn't immune to a deep recession. So why is this still floating around at bull market prices?

IBD

We are going to keep spending a lot of money on war and security. Whoever makes that more efficient is going to be profitable.

Mantech emlployees have taught 3 of my military classes and have always performed very well and have been extremely knowledgeable regarding the subject matter. Their "product" is enhancing the militaries ability to fight. I realize that sounds vague but its only because it has to. They deal with sensitive subjects.

Defense contractors = good investment potential during conflicts.

Keeps growing each year.

our security is always an important issue.

i like safety

Its a gem

This company keeps posting record profits and revenues. With a part of a new 50 billion contract award in hand, they will keep moving forward with record numbers.

No viable business plan

Can't define its market and market share

Executive management dumped most stock and Chairman is still dumping

Secrecy and security alone is not a viable market for a public company

Magic selection, see how well the little book does

The company develops information technology and technical service solutions for various mission critical national security programs, which supports the intelligence, justice and homeland security departments of the U.S government. Their solutions are used in telecommunication networks; infrastructure and system integration efforts supporting the U.S armed forces and other U.S security departments spread across the world.

The intelligence and defense department has been contributing on an average 92% revenue for the last three years, thereby connecting the firm’s revenue flow to U.S government spending in the area of security and defense. The rest of the revenue is contributed by state agencies and commercial entities. Increased spending by U.S government to support troops in Iraq and Afghanistan along with revenue flow from the recently acquired Grey Hawk led to a 17% increase in net revenue. This increase is reflected in the 8% increase in the bottom line.

ManTech has only about 8% of its revenue exposed to commercial market and federal agency spending unlike its contributors, which has a higher percentage of exposure. Thus the recent political shift in the U.S government, resulting in capping of federal security spending, will not affect the company. Also, as all mission critical national security programs has been given a go ahead, the position of the company looks secure.

The spending pattern by the US govt. for defense needs has undergone a change with factors like data integration and information sharing taking centre stage. The onus is now on providing a reliable technical service backbone along with network centric warfare and relevant information support to troops. The U.S government spending in information systems and related areas is expected to reach $66.4 billion by 2007. ManTech has positioned itselves to be a better player in this field, with revenue growth expected at 10% for the next fiscal. These factors can enable the company to continue its upward journey in the coming year also.

Homeland security, long-term gov't. contracts.