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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (37221)	4/13/2010 10:03:45 AM
From: E_K_S	Read Replies (3) \| Respond to of 78715

RE: Medical Properties Trust Inc. (MPW) Medical Properties to offer 24M shares Medical Properties to offer 24 million shares to fund tender offer finance.yahoo.com ------------------------------------------------------------------ Any idea what a good entry level might be? I am looking to start a new position. This secondary offering will add 30% more shares with the proceeds used to reduce 6 1/8% LT debt. Stock current yields 7.6% as long as the dividend holds. EKS

To: Grommit who wrote (37221)	10/5/2010 12:17:44 PM
From: Jurgis Bekepuris	Respond to of 78715

VSEC - They were mentioned in the "upgraded" magic formulla article, so finally I took some time to look at them. Nice ROE numbers. Very low net margins - I guess they keep them that way so government wouldn't feel they are getting gauged on the contracts (some contracts are cost+fee which naturally is low margin). As is clear from 2010 the government contracts are not going straight line up. Furthermore, there might be government cutbacks if budget deficit reduction get serious traction (a big IF...). So I guess the question to all VSEC holders is what is the edge for VSEC to get future contracts and continue good growth + ROE? Is it that margins are so low and nobody else bids? Is it management schmoozing/knowledge of bidders in Pentagon? In other words, why the future is going to look like 2004-2008 and not like something that happened to CRDN (and CRDN actually did have a technology/material edge, where VSEC to my eye has none)? Quote from 10K: "While our largest contract, the Rapid Response (“R2”) Program, is scheduled to expire in January 2011, we expect to continue our work on existing task orders under such contract through that time, however, specific task orders under the R2 contract will expire intermittently prior to the expiration date of the contract. We have submitted a bid for a follow-on to this contract that is currently under evaluation by our U. S. Army customer. However, we cannot determine revenue levels precisely even if we are awarded a follow-on contract." Have they obtained a follow-up contract? If not, how much this will affect them in 2011?