Topic: How To Invest

What is Pat’s advice for the week of August 23, 2011

Article Excerpt

At first glance, ManTech International has a lot of appeal, based on its financial picture. Its revenue rose 13.8% in the latest quarter, and is now running at more than twice its market capitalization, or “market cap” (the total value of all stock it has outstanding). The company recently began paying a dividend. To top it off, the stock trades at less than 10 times ManTech’s likely 2011 earnings per share. However, it pays to be wary of companies that supply U.S. military and security needs. Government procurement is always highly politicized. To make matters worse, a lot of information about this industry is withheld from public view. That combination lends itself to corruption. We have no reason to impugn the integrity of ManTech or any of its employees, but keeping everybody honest in this industry is a constant struggle. Meanwhile, we are moving into a period of weaker U.S. military and security spending. ManTech expects a 5.2% cut in the U.S….