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Qinetic (QQ.L): MOD Research & Technologies


drbubb

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Qinetic (QQ.L) ... Ministry of Defense Research & Technologies for the Public sector

 

A FALL / AFTER a controversial IPO birth:

chart ... update

bigil5.gif

 

In Feb. 2006 QinetiQ was listed on the London Stock Exchange with a market cap of £1.3 billion.

"The UK Ministry of Defence said in a statement that the IPO would raise

about 290 mln stg for the British taxpayer on top of more than 500 mln stg

received by the Treasury from the QinetiQ public-private partnership since 2002.

Describing the deal as "an excellent result for the taxpayer", Minister for

Defence Procurement Lord Drayson said: "This successful partnership between

government and business has sustained highly-skilled British jobs, whilst

supporting the need of our armed forces to access the very best of international

research and technology."

Critics of the deal have said they believe the government is selling the

company too cheaply. There has also been criticism of the decision to exclude

retail shareholders from subscribing for shares, which one market commentator

said could damage the liquidity of the stock."

 

STOCK PRICE SEEMS to have stabilised for now

 

ABOUT

QinetiQ was founded from the world's first top flight national defence laboratory to transition to the private sector. It gives customers access to the output of 50 years of national investment at the forefront of technology. Today, the Group has grown to offer its global customer base technology rich services and solutions, from an expanding base of leading capabilities in both Europe and North America.

 

QQ operate at the leading edge of technology which enables them to give our civil customers access to solutions that are often beyond those readily available in commercial markets.

 

QinetiQ's business is all about innovation and solutions. Its heritage is well-founded in developing intellectual property and applying it, providing a wealth of available expertise. This position gives the organisation a unique angle to take on important problems for its customers, providing them with tailored solutions.

 

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Corporate website : http://www.qinetiq.com/

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Qinetic (QQ.L) ... Ministry of Defense Research & Technologies for the Public sector

 

A FALL / AFTER a controversial IPO birth:

 

Critics of the deal have said they believe the government is selling the

company too cheaply. There has also been criticism of the decision to exclude

retail shareholders from subscribing for shares, which one market commentator

said could damage the liquidity of the stock."

 

STOCK PRICE SEEMS to have stabilised for now

 

If it was sold off far too cheaply then either the market is wrong or it was too expensive to begin with given the price has steadily fallen since flotation. Alternatively, it might just have been caught up in the summer sell-off. Defence stocks ought to be doing well, but Qinetic appears to have been an exception for now. There are rumours that it might land a big government PFI contract soon, although there are those that say it will present a conflict of interest if it does. On fundamentals I would expect the shares to be re-rated on the news (or before) if it were successful in landing the contract.

 

http://news.independent.co.uk/business/new...icle1218803.ece

 

The contract is for £10 Billion.

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Yep, know a couple of guys there, they also thought it was far too expensive when sold.

 

I remember suddenly being offered the chance to buy shares about a few days before the float, when previously it was impossible (for private individuals).

 

Could have been something to do with the (slightly shady) Carlyle group who became a "strategic partner" or something like that some time (couple of years) before the float, for a relatively tiny investment.

 

I think they pocketed about 1/3 of the total float value (~1.3 billion), their share ~400 million if I remember rightly, with people like John major and his cronies rumoured to have pocketed a cool 20 million each :D .

 

Strip their profit share from the price and you get a far better valuation of the company, which is, interestingly, not too far from current value. B)

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Yep, know a couple of guys there, they also thought it was far too expensive when sold.

 

I remember suddenly being offered the chance to buy shares about a few days before the float, when previously it was impossible (for private individuals).

 

Could have been something to do with the (slightly shady) Carlyle group who became a "strategic partner" or something like that some time (couple of years) before the float, for a relatively tiny investment.

 

I think they pocketed about 1/3 of the total float value (~1.3 billion), their share ~400 million if I remember rightly, with people like John major and his cronies rumoured to have pocketed a cool 20 million each :D .

 

Strip their profit share from the price and you get a far better valuation of the company, which is, interestingly, not too far from current value. B)

 

The Carlyle Group seem to have their fingers in many a conspiracy theory pie. B)

 

Yes, the government really screwed all the "Sids" on this one. It came to the market at the top of the expected price range and then each application was scaled well down, so that those who wanted a quick profit hardly got anything. Some might think that this is a good thing, but many who decided to hold suddenly realised what the true value probably was while some at the top, as always, did very well and got the cream. If it gets the PFI contract however, the shares should be re-rated upwards.

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