Shrinking Government Budgets and Sailing with a Friend
Published by Dr. Beyster July 31st, 2012 in Government, SAIC, San Diego.I have been reading in the newspapers that some of the largest defense contractors in the Washington area are starting to feel the effects of shrinking government budgets, particularly in the area of information technology. According to one article I read, the information-systems business was the only unit of four within General Dynamics to post both profit and revenue declines over the past year.
I of course have to wonder how this decline in IT spending — and in Defense and other government agency spending in general — will impact SAIC, which I believe still relies for the most part of government contracts. While the company’s stock is up about a dollar from its current 52-week low of $10.31 a share, the prospect of dramatic cuts to government budgets in the face of sequestration in the New Year may put some pressure on shareholder value. Good luck to them.
* * *
I had an enjoyable lunch last week with Jack Sutphen, who is an old timer and accomplished sailor at the San Diego Yacht Club. We got out on the Bay in my boat Solutions, and I believe an enjoyable time was had by all.
– Bob
Bookmark to:
The Sequestration Act is not going to change anything, although change is required. The solution however has to accept that the Defence acquisition process is broken, and has been at least since the early 1960s, having become both cultural and systemic.
If allowed to continue, it will threaten not only the US national security, but that of its allies.