VSE Corp. (VSEC)
Loading...
Symbols:
VSEC Forum Topics
- All Comments on VSEC
- General Discussion on VSEC
- 16 Stocks That Are Paying My College Tuition [view article]
- Valuations for 3 Smallcap Defense Contractors [view article]
- VSE Corp.: Quite Attractive at Current Price [view article]
- VSE Corporation: Another Look at Valuation [view article]
- Dividend Stocks: Good News / Bad News [view article]
- Dividends In the News: Seven Companies Raising Dividends [view article]
- VSE Corporation: Still on a Roll [view article]
- VSE Corporation Still Undervalued: Why Hasn't It Bounced Higher? [view article]
loading ...Recent VSEC Articles
- Valuations for 3 Smallcap Defense Contractors
- 16 Stocks That Are Paying My College Tuition
- VSE Corporation: Another Look at Valuation
- VSE's Second Quarter: Company Continues to Grow
- VSE Corp.: Quite Attractive at Current Price
- Dividends In the News: Seven Companies Raising Dividends
- Dividend Stocks: Good News / Bad News
- VSE Corporation: Still on a Roll
- VSE Continues To Deliver
- VSE Corporation: Riding the Rocket
- Full List of Articles »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »
Spritzer
16 Stocks That Are Paying My College Tuition [view article]
Glenn-Keep up the good work! Your stock recommendations are brief and to the point.
I also posted on XIN on my blog on May 19-
quantinvestor.blogspot...
George Spritzer
Reply
Valuations for 3 Smallcap Defense Contractors [view article]
Leigh, you make some fair points but first I welcome the discussion because you sound like you know the industry too. Personally I love the sector especially as you note those with commercial business interest as well. And VSEC has trailed down nicely so its definitely worth consideration.So in terms of my general statement, which true, that's what it was, in looking at their 10-Q, I actually think you're making my point. One contract for VSEC appears to have generated 75% of its total revenue. And that's where the "risk". From VSEC's latest 10-Q:
from page 13-14 of the 6/30 10Q filing:
"CECOM Contract: This contract generated revenues of
approximately $302 million in the first six months of 2008 and approximately$145 million in the first six months of 2007. The CED Army Equipment Support Program and the CED Assured Mobility Systems Program are performed through this contract. CED Army Equipment Support Program - In December 2005, our CED division was awarded a task order on the Rapid Response support contract to provide maintenance and logistics services in support of U.S. Army equipment in Iraq and Afghanistan. Services provided under this program include deployed sustainment management, deployed logistics and repairs management, unique system training and curriculum support, resource management and acquisition and administrative support. Most of the services on this program is provided by CED's subcontractor. Profit margins on subcontract work are generally significantly lower than on work performed by our own personnel." - This one concerns me. A) it's subk work b) it's generating a lot of low margin revenue. (now on the flip side, that could be disguising some nice higher margin biz, but the proportion is overwhelming right now).
And that's all I'm saying...when the revenue is concentrated like that, you've got to know how the customer views the contract, is it "strategic" or is it, "eh- take it or leave it."
I love to throw around ideas in this space - so please I welcome your comments and look forward to the discussion! :-) Best to you! Reply
Valuations for 3 Smallcap Defense Contractors [view article]
Buyit,you do have a valid point when speaking in general terms. However, personally I can speak about VSEC and CVU, your points don't carry a lot of wieght because of the type of contracts these companies have and the programs they are involved in. Short of us going back to reducing our military (like in the Clinton days) you are way off base. Matter of fact, as the war winds down these companies will benifit as they will also be involved in helping the military rebuild our worn torn equipment. And in the case of CVU they have major upcoming work with Commerical programs. Reply
Valuations for 3 Smallcap Defense Contractors [view article]
Your analysis presupposes that life will go on nicely as if these firms had lots of customers - they don't. Typically, they have 2-3 "real" ones. The defense sector is very different from others where one contract cancellation, delay, or award protest (witness Boeing's tanker fiasco) can ruin your whole quarter/year/call on a stock. Items you should consider are the quality of their backlogs, how the contract funding spread over the defense priority allocation system (DPAS). That will give you a sense of how serious the government considers the contracts - meaning, if the Dems get in and say "cut cut cut" the higher up on the DPAS their contracts are, the more likely the revenues will continue to flow. DCF is nice, but you need to put probabilities around every one of their major contracts and know where the funding is coming from to do a serious analysis. ReplyBlumenthal
VSE Corp.: Quite Attractive at Current Price [view article]
The Hammer,Their capex does exceed depreciation expense indicating that they are growing. For the first half of 2008, net income was 8.4M, depreciation expense was 2.3M and capex was 3.7M, leading to owner earnings of 7M. So, yes, they appear to have a level of capex consistent with a growth trajectory. Just when that will level out and they become a mature company is hard to say. I don't think it's going to be anytime soon since they have a lot of growth potential. We will begin to suspect they are reaching a mature phase when capex and depreciation expense are close to being equal. Reply
Blumenthal
VSE Corporation: Another Look at Valuation [view article]
The Hammer,This earlier article of mine will at least partially answer your questions.
seekingalpha.com/artic...
Reply
16 Stocks That Are Paying My College Tuition [view article]
Good stuff. Here are a few from my shopping list PETS and AUTH. (I own both all ready) VFC is another one I am accumulating. ReplyVSE Corporation: Another Look at Valuation [view article]
How is this company reinvesting the oe's?what customers do they serve? Reply
VSE Corp.: Quite Attractive at Current Price [view article]
It appears that this company has a higher level of cap ex to maintain this growth. At what point does cap ex level out? Reply16 Stocks That Are Paying My College Tuition [view article]
EZPW is making me a lot of money... through short selling Replycom
16 Stocks That Are Paying My College Tuition [view article]
I agree with Hurco.A semi annual show is this September. They are introducing 5-axis machines that are 20 to 30% less than the competition. Great Company. Reply
16 Stocks That Are Paying My College Tuition [view article]
I hope you're not really banking on these stocks to pay for your tuition bills. Many of those stocks are highly speculative, I will agree that SIGM is highly undervalued but many of those aren't. I'm not suggesting a broker or anything because I dont believe in their advice half the time, but I would suggest a much more conserative strategy when it comes to paying back debt. Those 16 could be great holdings at a young age considering you could take loses and just wait them out. I do like SIGM though. ReplyFlatt, CFA
16 Stocks That Are Paying My College Tuition [view article]
A very misleading title to this article. It appears that little to no tuition is being paid for in cash at the present time by means of holding these equity securities. I would recommend re-posting this article with a more accurate title; for example: "16 Stocks in Which I Am Speculating In the Hope of Having a Pile of Cash By the Time My Student Loans Come Due".Reply
16 Stocks That Are Paying My College Tuition [view article]
What proceeds, maybe I am confused, but from 7/2007 to 7/2008 you have losses of $1225 dollars. How is that paying for anything? Reply16 Stocks That Are Paying My College Tuition [view article]
Thanks for sharing your thoughts regarding your investment portfolio. Since I know few young people who invest -- let alone have any interest in learning how to save -- I commend you for putting together a plan that suites your needs. And like most plans, I'm certain that you'll continually monitor and fine-tune it as you go along. Keep up the good work and best of luck in the future. Reply