SAIC, Inc. (SAI)

markwk (36.01) Submitted: 9/16/2009 10:13:13 AM : Start Price: $17.82 SAI Score: +4.32

Ultimately the Federal deficit spending will have to come under control - impacting government contractors like SAIC. With the installation of a new CEO, an outsider from BAE - another large defense contractor, SAIC shows no indication of expanding the their target market. SAIC will be fighting for market share in a shrinking market.

SwordAgain (76.99) Submitted: 8/25/2008 9:35:37 PM : Start Price: $19.72 SAI Score: -0.89

E2008-09-03 5pm. It's tough to take a non-profit and turn it into a for-profit company. They are still struggling with that. Let the P/E go to 10 and then show the growth. Then I'll up-thumb it. That means it drops to 15 before it hits 25.

LucklessWonder (< 20) Submitted: 3/28/2008 1:31:53 AM : Start Price: $18.16 SAI Score: -12.29

Short-term, it's overpriced with regard to PEG and Price per Free Cash Flow. Downstream, if Obama wins the presidency, I have to think that defense contractors might see a reduction in revenue.

betterthanvegas (< 20) Submitted: 10/16/2007 11:41:21 PM : Start Price: $19.60 SAI Score: -16.55

Stagnant company, high P/E relative to peers. There are better plays out there.

NetscribeServcs (< 20) Submitted: 3/21/2007 8:03:57 AM : Start Price: $18.04 SAI Score: -16.34

SAIC, Inc. is a provider of scientific, engineering, systems integration, technical services and solutions to all branches of the United States military, Department of Defense (DoD), intelligence community, Homeland Security, Government civil agencies, as well as to customers in selected commercial market. It offers a range of services and solutions, including defense transformation, intelligence, logistics and product support, systems engineering and integration, research & development and commercial services.

U.S. government spending to the global war on terrorism and in transforming its military has increased ever since September 11,2001 attacks, making a favorable impact on SAIC’s business through fiscal 2005. For the reason that, since then U.S. government has increased outsourcing of information technology (IT) and other technical services from the company.

From fiscal 2002 to 2006 company’s consolidated revenue has increased at a CAGR of 15.5% to a company record of $7.8bn, of which major portion of the revenue upto 90% is generated from the government segment. Conversely, this favorable progress has slowed down in fiscal 2006 and 2007 as a result of diversion in funding toward the ongoing military deployment in Iraq and Afghanistan by U.S. government and tightening of spending in I.T. initiatives. Supporting the same, President Bush has announced a budget of 145 billion for 2008 to finance the wars in Iraq and Afghanistan in military deployment. Besides, competition for contracts with the U.S. Government is increasingly becoming intense. Also, according to management the operating margins that are lagging behind its peers would perk up in coming few years.

Company’s cash deployment strategy announced during the recent IPO roadshow would take effect only in the long run. Furthermore, increasing political pressure to reduce overall levels of government spending is negative for the company. Looking at the above factors SAIC’s stock price would enter a bearish phase.

vanubisv (< 20) Submitted: 2/27/2007 11:16:20 AM : Start Price: $18.30 SAI Score: -15.95

Although this company has won many new DoD contracts and is rolling in money, their bad business methods will catch up with them. The management within SAIC has a record of gender discrimination, cronyism and delivering products/technology that does not work and they are currently mired in lawsuits (see Mar 07 Vanity Fair article). Additionally, the DoD spendathon will end at some point - probably beginning with a Democratic Administration (which should be just on the horizon).

pitch31 (28.33) Submitted: 1/31/2007 9:18:18 PM : Start Price: $18.50 SAI Score: -15.30

Stock continues to get big contracts and stock does not move. Stock is out of favor currently and do not see this changing soon.

pjulius01 (29.22) Submitted: 1/22/2007 2:37:23 PM : Start Price: $20.84 SAI Score: -0.83

Don't get me wrong, this is a great company. The stock just needs to settle into it's on trading range after a cool down from the IPO.

lowteck (61.55) Submitted: 1/19/2007 7:50:30 PM : Start Price: $17.76 SAI Score: -18.73

Just a huge company. Billions of dollars of revenue. Very important to national defence. I like this company just on their expertise and fantastic ability to solve world security issues. I like owning this company just because of who they are.

stabfederline (96.37) Submitted: 12/14/2006 3:58:08 PM : Start Price: $19.35 SAI Score: -9.47

The EBITDA margin is a ridiculously bad 7.7%. Since growth is decelerating, I expect this margin to further decrease and continue to pull this stock down.

alkamist81 (< 20) Submitted: 11/20/2006 3:30:39 PM : Start Price: $19.43 SAI Score: -8.34

this is going to waffle around 20 for too long to beat the S&P. Plus the democrats are going to start reducing spending on militaristic ventures. Expect SAI to continue to be a profitable company, but don't expect huge gains from the stock.