SXE

[BigSully1]

 Other "stocks on the move"  Fri were ANW, OMTR, CMED, MCD, most of which broke out, ANW big time.
[/quote

another big day for ANW on even bigger volume. Hmmm.

[BigSully1]

Other "stocks on the move"  Fri were ANW, OMTR, CMED, MCD, most of which broke out, ANW big time.
[/quote

another big day for ANW on even bigger volume. Hmmm.

SXE stalling a bit, ANW still rallying strong.

[BigSully1]

New contract wins;
keep em coming boys.


http://biz.yahoo.com/prnews/070924/nem051.html?.v=19

http://biz.yahoo.com/prnews/070920/neth024.html?.v=26

[BigSully1]

New contract wins;
keep em coming boys.


http://biz.yahoo.com/prnews/070924/nem051.html?.v=19

http://biz.yahoo.com/prnews/070920/neth024.html?.v=26

A bit of a delayed reaction to the new contracts, seems like there always is on SXE, but is now reacting favorably last couple days. Nice. Has exceeded my ST target of 26.70 now (thats the best I could come up with for a technical target), but that was before the new contracts. Think I'll push it a little further....

[bjc]

What a run!

Applaud again Sully.  This has been a dandy for you...

[BigSully1]

What a run!

Applaud again Sully.  This has been a dandy for you...

Thanks bjc. You've been doing very well yourself. Did you ever replace AUY with another? I  intend to buy back AUY again eventually, just waiting to see how it shakes out now. Added more SLW  yesterday and is now by far my largest PM holding. Got silver?

[bjc]

I switched over to FCX, Freeport-McMoran.  It is basically 80% copper and 10 % gold and 10 molybdenum..  Goldman is estimating $16 in EPS over the next 4 quarters. 

Some members on the Yahoo! message board have done some excellent fundamental analysis.  FCX took over Phelps Dodge, who was a bigger company, about 6 months ago, maybe a little longer.  When the takeover was complete, FCX had about $14 billion in debt.  They've already paid that debt down to $7.7 billion.   

When FCX is debt free, I think it deserves a PE in at least the 12 range.  This gives you an approximated 12 x 16.  You know the market thinks ahead, this will start to be going through the street's heads.  It may be  a bumpy ride up, but I'll see my FCX target at $192.  There's other factors, such as Phelps Dodge's costless collars that are limiting EPS now.  They were a hedge PD made, and are maximizing the cost of copper for 450 million pounds a year at $2.  This will rise to the $3.6x, whatever it is now that FCX makes.  Currently it's a $107 stock.

FCX is a CASH COW.

[BigSully1]

most recent contract;

http://biz.yahoo.com/prnews/071004/neth047.html?.v=25

[BigSully1]

Increase in credit facilities relieves some dilution concerns

http://biz.yahoo.com/prnews/071010/new043.html?.v=24

Earning due Nov. 1

[BigSully1]

.27 on 150.2M vs .24/136M consensus, raises 2008 guidance again

Source: Stanley, Inc.


Stanley Reports Record Financial Results for Second Quarter Fiscal Year 2008
Thursday November 1, 4:00 pm ET 
Quarterly Highlights:
- Revenue increases 53% overall, 42% organic(1), to $150.2 million;
- Diluted EPS of $0.27;
- Bookings total $524.1 million; and
- Financial guidance increased for Fiscal Year 2008.


ARLINGTON, Va., Nov. 1 /PRNewswire-FirstCall/ -- Stanley, Inc. (NYSE: SXE - News), a leading provider of systems integration and professional services to the U.S. federal government, today reported record revenue and earnings for the second quarter of fiscal year 2008 ended September 30, 2007.
ADVERTISEMENT


(Logo: http://www.newscom.com/cgi-bin/prnh/20040106/DCTU010LOGO )

Stanley's second quarter fiscal year 2008 revenue and earnings results exceeded the company's prior guidance. Because of new contract awards, faster-than-expected ramp-up of contracts awarded in the first and second quarters of fiscal year 2008, and modifications to existing contracts that have exceeded expectations, the company has increased its fiscal year 2008 revenue and earnings guidance.

Second Quarter Fiscal Year 2008 Results:

Revenue for the second quarter ended September 30, 2007 was $150.2 million, an increase of 53 percent over year-ago second quarter revenue of $98.2 million. Organic revenue growth was 42 percent. Year-over-year revenue growth for the second quarter resulted primarily from growth in passport services, expansion of systems integration work under the SPAWAR corporate production contract, increased work supporting Army RESET programs, continued capture of market share across many of the company's service areas, and revenue from the Techrizon acquisition.

EBITDA(2) was $13.4 million for the quarter, an increase of 57 percent over EBITDA of $8.5 million in the year-ago quarter. EBITDA margin for the second quarter increased to 8.9 percent from 8.7 percent a year earlier due primarily to continued efficiencies realized in the company's general and administrative infrastructure on a higher revenue base. Operating income was $11.6 million, up 69 percent from $6.9 million in the same quarter of last fiscal year. Operating margin increased to 7.7 percent from 7.0 percent in the second quarter of fiscal 2007, due to the factors improving EBITDA as well as depreciation and amortization and deferred compensation expenses representing a lower percentage of revenues.

Net income for the quarter was $6.3 million, or $0.27 per diluted share, versus $2.4 million, or $0.15 per diluted share, a year ago.

Contract backlog at September 30, 2007 was approximately $1.4 billion, up 38 percent from June 30, 2007, and up 43 percent from September 30, 2006.


    Second Quarter Fiscal Year 2008 and Recent Highlights:
    -- Second quarter bookings totaled $524.1 million, equating to a quarterly
       book-to-bill ratio of 3.5:1.
    -- New business awards and additional tasking in the second quarter of
       fiscal year 2008 included:
       -- A $267 million, five-year contract to operate the U.S. Army's Field
          Logistics Readiness Centers at Fort Campbell, Ky. and Lexington,
          Ky.;
       -- A $225 million, three-year, indefinite delivery, indefinite quantity
           (ID/IQ) contract for the U.S. Citizenship and Immigration Services
           (USCIS), Department of Homeland Security;
       -- A $115 million, five-year ID/IQ contract to provide technical and
          analytical support to the U.S. Navy's Commander Operational Test and
          Evaluation Force;
       -- A $76 million, five-year contract and an $8 million, four-year
          contract to provide IT life cycle support of Standard Army
          Management Information Systems for the U.S. Army Reserve Command
          (USARC) and to continue support of the USARC Fleet Management
          System, respectively.  Both represent additional tasking under
          Stanley's Field and Installation Readiness Support Team (FIRST)
          prime contract;
       -- A $17 million, five-year contract and an $8 million, five-year
          contract to provide sustainment, support and enhancement for the
          Marine Corps Recruiting Information Support System (MCRISS) and to
          provide network operations support for the U.S. Marine Corps
          Recruiting Command (MCRC), respectively; and
       -- A $4 million, 10-month contract providing the Army Materiel Command
          and Army Sustainment Command with the enterprise foundation and
          information solutions critical to Army RESET programs.

    -- On October 10, 2007, Stanley announced that it had signed an amendment
       and restatement of its Senior Revolving Credit and Term Loan Facility
       ("Senior Credit Facility").  The new Senior Credit Facility includes
       the following provisions:
       -- A $100 million increase in the revolver, to $150 million;
       -- An accordion feature for increase of the revolver commitment up to
          an additional $125 million;
       -- A more favorable pricing grid lowering the applicable margin;
       -- An extension of the revolver commitment termination date to October
          31, 2012; and
       -- Less restrictive financial covenants and more flexibility for
          potential future acquisitions.

Six-Month Fiscal Year 2008 Results:

For the first six months ended September 30, 2007, revenue increased 49 percent to $283.7 million compared with $190.7 million for the same period in the prior fiscal year. Organic revenue growth for the first six months of fiscal year 2008 was 38 percent. EBITDA for the six-month period ended September 30, 2007 increased 54 percent to $25.1 million compared with $16.2 million for the first six months of fiscal year 2007. EBITDA margin for the first six months of fiscal year 2008 was 8.8 percent, up from 8.5 percent for the same period a year earlier. Operating income for the first six months of fiscal year 2008 was $21.6 million, an increase of 67 percent over operating income of $12.9 million reported a year earlier. Operating margin for the first six months of fiscal year 2008 was 7.6 percent compared with 6.8 percent in the first six months of fiscal year 2007. Operating margin increased year- over-year primarily as a result of efficiencies realized in the company's general and administrative infrastructure on a higher revenue base as well as depreciation and amortization and deferred compensation expenses representing a lower percentage of revenues.

Net income for the first six months of fiscal year 2008 was $11.7 million compared with net income for the same period last year of $4.9 million. The primary reasons for the increase in six-month net income were the factors affecting operating income and lower interest expense. Diluted earnings per share for the first six months of fiscal year 2008 were $0.50 compared with diluted earnings per share of $0.30 for the first six months of fiscal year 2007.

Cash flow provided by operations for the six months ended September 30, 2007 was $0.7 million, up $7.1 million from the $6.4 million used in operations for the three months ended June 30, 2007. This increase was driven by a decrease in days sales outstanding ("DSO") and increased net income. DSO for the quarter was 77 days, down from 81 days for the first quarter of fiscal year 2008.

Management's Outlook:

Based on the company's current backlog and management's estimate as to future tasking and contract awards, Stanley is issuing guidance for the third quarter of fiscal year 2008 and increasing guidance for the full fiscal year. The table below presents management's current expectations about financial performance for the third quarter and full fiscal year, based on information available at this time:



                             Third Quarter          Fiscal Year 2008
                        Fiscal Year 2008 Ending          Ending
                            December 31, 2007        March 31, 2008

    Revenue                $152 - $162 million     $590 - $610 million
    Diluted EPS            $0.27 - $0.29           $1.05 - $1.10
    Diluted share count    23.6 - 23.7 million     23.6 - 23.7 million


"In the second quarter of fiscal year 2008, Stanley saw growth throughout the value chain that makes up our systems integration framework of IT solutions," said Phil Nolan, Stanley's chairman, president and CEO. "Second quarter bookings were strong, especially from contracts related to logistics and sustainment work for the U.S. Army and Marine Corps."

Nolan concluded, "At the midpoint of our fiscal year, our visibility into current and recently awarded contracts has further improved and we are able to increase financial guidance. The increase in our FY08 guidance is driven by several recent and significant awards and continued expansion of existing contracts."

As previously announced, Stanley management will conduct a conference call today at 5:00 p.m. EDT to discuss fiscal second quarter 2008 results. To obtain the dial-in number, please contact Rashida Gofney at (703) 310-3209. The conference call will be broadcast simultaneously on the Investor Relations page of the company's website, http://www.stanleyassociates.com. Investors are advised to log on to the website at least 15 minutes prior to the call to register, download and install any necessary audio software. An archive of the webcast will be available for one week following the live event.

About Stanley

Stanley (NYSE: SXE - News) is a provider of information technology services and solutions to U.S. defense and federal civilian government agencies. Stanley offers its customers systems integration solutions and expertise to support their mission-essential needs at any stage of program, product development or business lifecycle through five service areas: systems engineering, enterprise integration, operational logistics, business process outsourcing, and advanced engineering and technology. Headquartered in Arlington, VA, the company has approximately 3,000 employees at over 100 locations in the U.S. and worldwide. In 2007, Stanley was recognized by FORTUNE® magazine as one of the "100 Best Companies to Work For." Please visit http://www.stanleyassociates.com for more information.

The above-referenced statements may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals, financial information or reporting, and similar expressions reflecting something other than historical fact, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward- looking statements may involve a number of risks and uncertainties, which are described in the company's filings with the Securities and Exchange Commission. These risks and uncertainties include: changes in federal government procurement laws, regulations, policies and budgets; risks relating to contract performance; changes in the competitive environment (including as a result of bid protests); and the other factors discussed in the company's Annual Report on Form 10-K for the year ended March 31, 2007, as filed with the SEC on June 1, 2007 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, as filed on August 9, 2007. The risk factors set forth in the Form 10-K and Form 10-Q under the caption "Risk Factors" are specifically incorporated by reference into this press release. All forward- looking statements are based on current plans, expectations, and beliefs and speak only as of the date of such statements. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


    (1) Organic revenue growth, as presented, measures revenue growth adjusted
        for the impact of acquisitions. Stanley believes that this non-GAAP
        financial measure provides useful information because it allows
        investors to better assess the underlying growth rate of the company's
        existing business. This non-GAAP financial measure should not be
        considered in isolation or as a substitute for measures of performance
        prepared in accordance with GAAP.  Please see the reconciliation table
        at the end of this release.

    (2) EBITDA is a non-GAAP measure that is defined as GAAP net income (loss)
        plus other expense (income), interest expense, income taxes, and
        depreciation and amortization. We have provided EBITDA because we
        believe it is a commonly used measure of financial performance in
        comparable companies and is provided to help investors evaluate
        companies on a consistent basis, as well as to enhance an
        understanding of our operating results. EBITDA should not be construed
        as either an alternative to net income as an indicator of our
        operating performance or as an alternative to cash flows as a measure
        of liquidity.  Please refer to the table at the end of this release
        that reconciles GAAP net income to EBITDA.



                 Condensed Consolidated Statements of Income
                                 (unaudited)
                   (in thousands, except per share amounts)

                             Three Months Ended        Six Months Ended
                               September 30,             September 30,
                             2006         2007         2006         2007

    Revenue               $ 98,191    $ 150,239    $ 190,746    $ 283,720
    Operating costs and
     expenses:
      Cost of revenues      83,116      127,556      161,419      239,879
      Selling, general
       and administrative    6,559        9,322       13,080       18,750
      Amortization of
       deferred compensation   355           67          604          142
      Depreciation and
       amortization          1,306        1,702        2,694        3,312
      Total operating
       costs & expenses     91,336      138,647      177,797      262,083
    Operating income         6,855       11,592       12,949       21,637
    Other income (expense):
      Other income
       (expense)              (804)           6         (544)           6
      Interest expense
       - net                (2,034)      (1,138)      (4,179)      (2,200)
      Total other expenses  (2,838)      (1,132)      (4,723)      (2,194)
    Income before taxes      4,017       10,460        8,226       19,443
      Provision for
       income taxes         (1,595)      (4,125)      (3,320)      (7,744)
    Net income             $ 2,422      $ 6,335      $ 4,906     $ 11,699

    Earnings per share:
      Basic                 $ 0.16       $ 0.29       $ 0.34       $ 0.53
      Diluted               $ 0.15       $ 0.27       $ 0.30       $ 0.50
    Weighted average shares:
      Basic                 14,684       22,034       14,551       21,966
      Diluted               16,533       23,591       16,435       23,478



                   Selected Consolidated Balance Sheet Data
                                 (unaudited)
                                (in thousands)

                                               As of              As of
                                          March 31, 2007    September 30, 2007

    Cash                                       $12,736                    $-
    Accounts receivable - net                 $110,029             $ 131,065
    Line of credit                                  $-               $18,494
    Current portion of long-term debt           $1,000                $1,000
    Long-term debt - net of current portion    $36,750               $36,250
    Stockholders' equity                      $134,152             $ 148,961



                        Organic Growth Reconciliation
                                 (unaudited)
                                (in thousands)

                                              Three Months Ended
                                                 September 30,
                                     2006            2007      Percent Growth

    Total revenue, as reported      $98,191        $150,239         53.0%
    Plus: Revenue from acquired
     companies for the comparable
     prior year period                7,628               -
    Organic Revenue                $105,819        $150,239         42.0%


                                               Six Months Ended
                                                 September 30,
                                      2006            2007     Percent Growth

    Total revenue, as reported     $190,746        $283,720         48.7%
    Plus: Revenue from acquired
     companies for the comparable
     prior year period               14,893               -
    Organic Revenue                $205,639        $283,720         38.0%



                            EBITDA Reconciliation
                                 (unaudited)
                                (in thousands)

                                 Three Months Ended         Six Months Ended
                                    September 30,             September 30,
                                  2006         2007         2006        2007

    Net income                   $2,422       $6,335       $4,906     $11,699
      Provision for income taxes  1,595        4,125        3,320       7,744
      Interest expense - net      2,034        1,138        4,179       2,200
      Other expense (income)        804           (6)         544          (6)
      Depreciation and
       amortization               1,306        1,702        2,694       3,312
      Amortization of deferred
       compensation                 355           67          604         142
      EBITDA                     $8,516      $13,361      $16,247     $25,091
      Revenue                   $98,191     $150,239     $190,746    $283,720
      EBITDA Margin                 8.7%         8.9%         8.5%        8.8%




--------------------------------------------------------------------------------
Source: Stanley, Inc.

[BigSully1]

New high.

[BigSully1]

Got  a double, took 2/3 off the table. Up 18%

[BigSully1]

Sold a bit early, could have got another 7% out of it. Oh well, still happy, and still holding 1/3.

[bjc]

Do you watch the TV show Curb Your Enthusiasm?  Larry David is playing the card game "war" with his new house mate, and they keep going... I declare war BOOM!  The longs declared war here and crushed.  Great work, what was your catalyst on your buy on this?  Or, worded differently, why did you like this stock?  It's been killer.

[BigSully1]

1) I really like the sector
2) I have a friend in Homeland Security that is very knowledgeable about them
3) I know that a former Admiral - forget his name, was the founder and is very well connected in government.

I was very cautious when I first bought in being a new IPO but, but as all the big contracts came rolling in and my sentiments were confirmed, I kept adding more.

I will probably sell some more soon, then put the rest away for the LT. I think insiders will probably begin selling some soon now, and there might be dilution coming up. I wouldn't advise buying here and now, but I still think they have a great future.ahead.