Stanley, Inc. (SXE)

Stanley, Inc. founded over four decades ago, recently released an initial public offer, primarily to reduce the debt caused by $82.2 million Morgan Research Group acquisition in early 2006. It is involved in the business of providing IT based services and solutions exclusively to U.S. defense and federal civilian government agencies, with over 65% of the over all revenues generated from U.S. defense department. The company provides services in five key areas: systems engineering; enterprise integration; operational logistics; business process outsourcing; and advanced engineering and technology.

Stanley’s exclusive operations for U.S. federal government create an indispensable risk, as the budget cuts can deeply impact companies like Stanley. However, with federal government being the single largest purchaser of IT based services and solution, spending to the tune of over $70 billion, has open a hefty opportunity. Moreover, in the midst of war in Iraq and Afghanistan there has been strong demand for outsourcing the technical and process functions, thus leading to an additional spending by the defense on IT based services.

The company is currently witnessing a sturdy performance, as revenues registered a rise of 48% driven by the Morgan Research acquisition and improved business from existing and new clients. Stanley also has a strong record of wining all of its recompeted contracts from the existing clients, and this record will surely come in handy as its biggest Department of State contract that contributes about 14% to the revenue tally is slated to expire in end of 2007. Looking ahead in 2007, the company will continue to provide strong performance amidst of growing demand by federal agencies. While added synergies with the acquired company can improve margins that currently observed a minor drop. Adding to it, the new initiative to mandatorily require a passport for traveling between U.S. and formerly exempt countries is set to be implemented from 2007, and will claim a very positive impact on Stanley’s core passport services operations, boosting the company to outperform the benchmark.

Another random pick, this time due to the humor of a stock ticker sharing the name with the non-drinking/non-smoking straight-edge movement.

This is great turn around stock. Look at the balance sheet from just a year ago!

earnings strat

Former Military Member, I belive the government will need further technologies than any other industries in the country.

Strong fundamentals but caution must be taken as the stock's industry group is not a strong performer. SXE recently cleared a base with higher than normal volume.

This is a great company and they've got a lot of pressure on them as they've been getting so much praise and attention. It's getting a little overvalued, which makes me worried, but I still think it will overperform, at least for a little while.

Handle has formed (is forming)

This stock will beat over almost all timeframes.
It is a small cap (not for much longer!), which has a solid internal and acquisition based growth strategy.
It is mostly owned by employees and mutual funds.
Good target for premium purchase in the next 5-10 years, when it will be considerable bigger market cap.
Get it before it is the next Lockheed!

tHIS ONE WILL BE ONE THE MOVE. HAS CASH$$$

hey lets just hope that this company can get some information that the gov could actually use to benefit us the people

Decent returns but I would like to see the key price ratios a little lower, especially with respect to cash flow which is currently over 20.

IBD

Stanley has consistently had a significant growth rate for the last 10 or so years.

MOTLEY FOOL PLUS INVESTORS BUSINESS DAILY
1) INSIDE OWNERSHIP >15% PER FOOL
AND EITHER
2) PRICE LESS THAN $15 PER IBD
OR
3) RELATIVE EARNINGS LESS RELATIVE STRENGTH = A POSITIVE NUMBER.

NOTE #3 ABOVE YIELDED QSII BACK IN AUG 2008

PEG = 1.15

stimulus money should trickle in

Defense and Civilian Government agency IT Support. Budget cuts.

Well-connected to military/civilian government contracting. Efficiently run, consistent performer. Got a nice pop today and up significantly since the IPO, but still more to come, I think.