Qinetiq Share Discussion Threads

[nemesis toad] 12/11/2008 22:22

So SR is for Sea ranges ?

Yes they may have basic stuff on sea ranges but I hear they are on a reducing contract
Even the Maritime contract MOD gave them before MoD sold their shares for over 200 plus is likly a loss maker, I read on another board that it is a reduction from the money they got before the contract. Its not new work just a longer term contract to put up orders. The win notice says they will win commercial work that they tried to do before
Did they ever do much commercial work in this place?
If all this is true, and they don't this deal will sink into loss

[michaelsr] 12/11/2008 09:02

nemesis toad - It does look like QQ business but they are also involved in the management of a lot of basic stuff that will not be cut - management of sea ranges is a speciality. We'll have to see where they go but the stronger dollar can only help their results.

[nemesis toad] 11/11/2008 00:37

US mulling cuts in programs with Obama on Thomson news. Future Army Systems may be cut. Isn't this Qinetik business?

[michaelsr] 04/11/2008 08:24

gktc - As I understand it, the bulk of QQ's regular, not particularly profitable but reliable business is in facilities management (managing sites, ranges etc.) for the MOD in the UK. That includes a lot of facilities management etc. Their main profitable businesses are in the US. As they report in GBP and wage inflation in the UK has not taken off (yet?) they should benefit enormously from the US end of their operation.

[gktc] 02/11/2008 19:53

mw, sorry not totally up to speed on what the MOD have left in terms of shareholding. The trouble with the project support stuff (upgrades of legacy equipment etc) is that it will typically go to the original supplier or traditional defence manufacturer (BAE SYSTEMS etc). QQ are not a manufacturer and will never get a significant slice of this pie IMO. I agree that the £:$ will help the US contribution, it will be interesting to see if the US defence (excl national security) funding remains robust post this global crisis and election.

[nemesis toad] 01/11/2008 11:24

gktc
Thanks. Now I am more worried . upgrading legacy rotors won't feed many mouths will it?.

Think i will sell this week if we get 175

[mw] 31/10/2008 20:37

gktc,

I thought that the MOD had disposed of its remaining stake (apart from its "special share" ) at a price of 206p recently?
Otherwise your comments regarding staff levels in emea are interesting. I would have thought that with spend on major UK defence projects uder threat or declining, that there would be a market for upgrading legacy equipment, so as to improve its capability. The Carson rotor on the 30 year old Sea King is one such that comes to mind. There may be other examples which need to be pursued.
Also income stream from the US will benefit from the fall in the pound relative to the Dollar (at least in the short term).

[gktc] 31/10/2008 08:40

nemesis,
qq are heavily dependent on the US to maximise the profit for the company. In effect the UK operation is a cash cow bringing in a modest income against the huge income expected from the US, hence drive along the acquisition trail of US based specialist companies. However what isn't clear is the poor state of the UK business especially in the traditional areas that qq specialise in. MOD competition, programme delays and cut back have meant that EMEA has been short of income to maintain the staff levels, and due to the lack of budget to reduce numbers, they have been carrying this surplus for far too long. Recent 'market unannounced' redundancies have tried to address this in some areas as a last minute exercise. Will this work ? I guess it will help in the short term but not long term - too little too late comes to mind. I could see most of the UK business being sold off to BAE/Thales etc. but not sure if anyone would have the funding these days. Ongoing budgets both in the UK and US defence research must be under immence pressure as both Governments will have trouble funding for what is still a 20 year in-service expectation.
This industry is still defensive in terms of stock market valuations and hence the relative good performance against the rest of the market. However I can see it being a long time to recover to the previous highs, which considering it is only 10% higher than the IPO price in good market times doesn't inspire confidence. Another factor is whether the MOD will be under pressure to dispose of its remaining stake to provide the Government with additional money.
Enough said, best of luck

[wad collector] 30/10/2008 12:13

Name a better performing equity over the last 6 months.There aren't many.

[the other kevin] 30/10/2008 10:39

Summat's up

[gunter guil] 30/10/2008 07:11

Concerning that we are in uncharted waters with the share price but there doesn't seem to have been any spike in volume that might indicate someone in the know. BAE also dropped heavily from the opening price although still ended slightly up.

We could be in for a rough ride due concern with Oblahblahs plans.

[nemesis toad] 29/10/2008 20:00

I brought 10000 of these around the time the MOD sold their holding. Since then they have only dropped , even when the market rose today they dropped. A mate of mine thinks I may have made a big mistake. He had checked their report and accounts. It seemed to him to be their profit depends on the US and on one off items. Underlying profits have dropped a lot . and the US is in recession. And the men at the top made a major killing and their main MOD customers may not like that a lot now they arn't shareholders I am now worried that they are worth a lot much less but they have only just broken resistance. Does anyone have a clu where these are headed?

[wad collector] 29/10/2008 18:25

Yes Z , bit worrying today.Still , looking back , has still outperformed the ftse100 over the last 6 months.
Hope no-one knows something bad that we don't.

[zeppo] 29/10/2008 17:58

Not looking good today.

Down against the market.

z

[damanko] 23/10/2008 17:03

Looks okay to me, just have to be brave enough to ignore the worldwide volatile (ie reasonably crazy) swings, day after day. QQ. seems (to me) to be a quality outfit, one day this price will make buyers seem very intelligent. Though I would say that, as I am biased, having bought a couple of years ago. I am in (small) profit to date, though only through reinvesting dividends.

Anyway, 5 years or so will see a very different picture, in fact I'm considering adding - on a monthly basis, can't remember a better time to do that type of stuff. Let's be boring, it works, sometimes....................

[zeppo] 23/10/2008 14:25

wad collector

Up nicely against the market so far today.

Fingers crossed for a divi increase next month.

z

[wad collector] 23/10/2008 09:24

Or maybe 2010?

[wad collector] 29/9/2008 09:06

I switched my BAE holding back into QQ this am ; BAE had risen 2% and QQ now fallen 12% off last week. About the only profitable deal I have made this quarter.Hatches battened down, re-emerge in 2009?

[wad collector] 22/9/2008 16:17

Damanko , as you say not much overlap with BAE , I wonder if this makes it a suitable acquisition for BAE and acceptable as a "British " company?

[gunter guil] 22/9/2008 16:03

indeed. It looks as though both parties are 'committed' to enlarging the US army. And the UK will ultimately have to do the same.

[wad collector] 22/9/2008 15:51

Yes , and neither American party looks likely to abandon that postition in November .

[damanko] 22/9/2008 15:31

Interesting. I hold both, the only defence stocks I have. Bought BAE in the early 90,s, and QQ. in 2006, a few months after they were floated, managed to buy at 40% discount to the IPO price.

Though both are in the defence sector, I see little overlap. Both I feel are well placed in the North American market, which is less subject to political meddling, whatever party is in power.

If you are known - and happy to stay - as the the world's policeman, and only real superpower, there is only one way to maintain that position.

Maintain defence spending.

[wad collector] 22/9/2008 11:16

Limit order triggered just now to sell half my holding at 229 , suspect may be down again before too long , switching to BAE for now.

[wad collector] 19/9/2008 13:22

I couldn't get on to Selftrade this morning until the opportunity had gone - frustrating- but I think the plan to switch half makes sense if the timing works.