Kedar Special Situations

Leidos - A New Spin-Off To Play The CyberIntel And Healthcare Sectors

  • Long: Leidos Holdings (NYSE:LDOS) (previously SAIC, Inc. pre spin-off)
  • Current share price: Trading commences on 30-Sep-13
  • Potential Return: Short term, shares can trade at $37-$40. Over next 18-24 months, LDOS can trade as high as $62, excluding buybacks, special dividends and normal dividend.
  • Market Capitalization: Approx. $3.5B
  • Cash: $750M; Total Debt: $1.3B
  • Shares Outstanding: Approx 89m adjusted for split
  • FCFF (TTM): Approx. $350M
  • Trading timeline: 18 months; Inflection Point: 1Q14
  • Main Catalyst: Buybacks, Small divestitures, Expected special dividends, Change in management incentive policy, Incremental spending on Cyber Security and Intel, Positive Healthcare IT spend trends, Cost Synergies and Potential M&A
  • How might I trade: Go long the stock if the price goes below
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details