Seems like Saic was a pretty self-sufficient private company without a need to go public.
Now that they have gone public, why would they need to care about share holders. They have a fixed client ie. Government based more on contacts than on competence and stockholder goodwill. Ironically they have been doing well, but their stock languish. The profits will be divvied up among the management and they won't care much about driving the stock higher.
With such hefty contracts what actually is given back to shareholders, in terms of dividends/buybacks is still a mystery. My open question is why would SAI management even bother what wall st. thinks of them.
Okay, you're right Nova engineer... shouldn't be alienating them.
Just irks me hearing that people genuinely think that management/employees could care less about stock value, how we "made a killing" off the IPO (not true), etc etc.
Simply put, we picked poor timing for the IPO in terms of the overall sentiment regarding government contractors right now. With the house/senate @ war with the President, talk of spending less, pulling out/escalating Iraq conflict.... investors take this information and start thinking that SAIC is in trouble concerning future contracts. What really stinks is that, as you've mentioned, SAIC is a lesser known government contractor, and has really come into the public light since the IPO. And you and I both know the reason behind this: the insane amount of classified work that SAIC does, work which for obvious reasons does not get noticed.
You are correct in saying we need a good PR guy... PR is certainly not something SAIC has had to deal with in the past.
I'll try to tone it down in the future ;)
the bashers on board here are ridiculous though, given their complete lack of knowledge about the company.
Let's hope PR does get better.....
when all is said and done, SAIC will prevail through a divided house/president as well as the eventual all-dem lineup we have coming.
but, that's classified (or so PR would have you think...or not think for that matter) ;)
I do have some sentiment for a frustrated street holder who asks what is the share holder benefits?
- First the buy backs...if you want someone to notice your stock and that you have buy backs in progress then make it an PR event! Otherwise they are buried in the SEC filings! Yawn..zzzz!
- Dividends, Yes every IPO I have seen says they do not intend to distribute dividends...its a CYA. Dividends is a great defense for the stock price which the SAI defense seems to be weak/nill (oh yeah aren't we getting close to another lock up date - back to $17?). Also dividends are another good PR!
- Growth? Acquistions? Where is the beef? SXE has already has an acquistion in progress!
Ok...Ok...I know its only six months...but I am saying I can relate to some of the sentiment for a frustrated street holder!
Benwlink: lets get the stockholders on OUR side, not alienate them. When you get someone like with_due_bill or (to a lesser degree) kevinc, then blast away. But, I think Jesus has some legitimate concerns
"without a need to go public.": We HAD to go public. SAIC was having to keep tens (hundreds?) of millions in the bank as cash in order to do buyback during the internal trades. One of the biggest reasons we went public was to free up this cash for captial improvments and aquisitions.
"why would they need to care". For me, personally, I currently have about 20% of my "egg" in SAIC stock. I hope, and am working hard toward making the price climb because it represents cash in my pocket at retirement. I'm driven by the same motivations that drive persons working in a company whose stock climbs higher & faster - there is no difference - we all want the same thing
"The profits will be divvied up among the management and they won't care much about driving the stock higher.": Please describe to me how you think this happens, and I'll comment further. I'm thinking that once you contemplate your statement, you'll see how silly it is. But none-the-less, if you really believe it, tell me how you think Mgmt grabs the profits and we'll talk more.
"what actually is given back to shareholders, in terms of dividends/buybacks is still a mystery":
Dividends are no mystery. The S1 said "NO DIVIDENDS" loud and clear. If you think the lack of dividends is a mystery, then shame on you. You didn't read the S1.
Buybacks are no mystery: The extent to whch we can buyback, and the plans for buying back are in SAIC SEC documents. Go read them: www.saic.com
"My open question is why would SAI management even bother what wall st. thinks of them.": I don't think SAIC mgmt DOES care what Wall st thinks of them. What SAIC mgmt DOES care about is a sound plan. It is clear mgmt is effective. All you have to do is review the wins for the last 60 days.
To be fair: the stock could be had for the low 17s at the IPO. As I write this, the stock is above 19 again. That is about a 10% gain in 6 months. If you bought at 18-19-20, then I can understand, but the stock price is driven by the public, not mgmt. I think you are shooting arrows at the wrong monster.
Don't forget that SAIC was an unknown 6 months ago. Our own IPO broker (MS) downgraded us right before Q4 earnings. Its clear the public has a lot to learn in understanding who SAIC is and what SAIC doese do so that they will have the confidence to buy and hold
Hey- I have legit concerns here to. Let's talk about my "egg". I about 40% of my portfollio is in SAI. I also will buy more when (if) the time is right. My portfollio accounts for about half of my equity investments, and as the other half is in my current company's 401k which does not have an option to buy your stock. So.. I too have about 20% of my net worth sunk into SAIC, and I don't even work there!
I thought employee stock options were meant to protect the share value, but if employees are the ones sparking off selling on a good news, then take their options and hand them a pink slip.
Different companies utilize their cash in different ways. Like with the cash form a gargantuan contract, a Google would invest in a new service, Phillip Morris might increase the dividend. Valero does buybacks. I want to know where does SAIC money goes. I am not alleging that it translates to fat bonuses for management, but I would be curious where it went if I don't see any stock price improvement.
Heh, because the employees STILL own the majority of the company.
That's why they/we/I care. Talk of all profits going to management is absolutely ludicrous. Upper/middle/lower management all own shares, other employees all own shares.
SAI management cares what wall street thinks b\c that directly affects their holdings, regardless of options etc given.
Do a little thinking before you post this sort of drivel.