What we don't get is why this stock didn't bounce immediately to $75. If you buy the growth story, then this stock should be at $75. If you don't buy it, then this stock should not be increasing gradually at all. Obviously the trend is real and the company has a proven growth pattern, including the ability to team up with others for larger contracts. Perhaps the market is signaling that VSEC growth rate is poised to contract to 7/8% over the next five years. Otherwise we just don't get the markets laidback stance on this one.
By the way, we still maintain our 33% average annual growth estimate for the next five years (FY2008 - FY2012). This one is still a buy at $67.
VSEC 1-yr chart
Disclosure: No conflicts.