Springtime Budget-Busters -- Savings Experiment
How I Squandered My Inheritance at Age 18
No doubt, SAIC Inc. (NYSE: SAI) had a stunning IPO last week. The stock increased from $15 to $18.18 per share and traded about 50 million shares.
Founded 37 years ago, SAIC helps governments solve tough problems such as building technologies for unmanned planes or designing new battlefield networks.
In fact, governments outsource billions of dollars in research projects to SAIC. So, what are some of the things the company is working on?
Well, you can find out from the company's IPO filing:
Advanced Robotics. These are individual robots as well as unmanned vehicles. For example, an unmanned vehicle uses geospatial intelligence to basically get to where it needs to go (and, yes, defeat our enemies). One application: "these robots may be used to search and map terrorist-occupied or earthquake-damaged buildings, as well as track intruders."
Wireless Sensors. These are very small wireless sensors called Smart Dust. They basically self-configure according to changes in the environment. Application: "help the U.S. military improve situational awareness, reconnaissance, surveillance and target acquisition capabilities in urban areas."
Biopharmaceutical and Medical Research. SAIC is developing nanotechnology technologies to treat cancer, as well as come up with vaccines for HIV, anthrax and malaria. The goal is to establish a huge database called the Biomedical Informatics Grid, which will allow research among 600 experts from over 50 cancer centers.
Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
10-16-2006 @ 2:02PM
Michael Schneider said...
Story stocks can be exciting but also they often are risky and often over priced. Advanced robotics is truly a hot area now, for example, and long term trends are excellent for that area. Take a look at iRobots (IRBT) stock though-- a high price relative to meager earnings and the stock has come off a good mobe into the 30s. The story is great and brokers recommend it but the price makes it risky and there is competition as well. SAIC is in cool areas. Does that alone make it a great stock?
10-17-2006 @ 2:09AM
laurie bronson said...
i worked for SAIC for 23 years. and what is being discussed above - the robotics and such - is R&D money. money that SAIC has always set aside for research and development. it is always 'extra money' (i'm no financial expert obviously, am a programmer - i'm sure there is a term for it) - but it never is money that is needed elsewhere for operations. This is money set aside to be a 'loss' - and then if it pans out - it is golden. But things are always learned from it - so in that sense it never is a loss.
But it has nothing to do with daily operations UNLESS it pans out. It has to go thru rigorous committees to be funded, and is budgeted carefully and watched. Never allowed to be a drain. SAIC has always done this sort of R&D work. it is a smart way to do business - in my opinion.
These projects are also the ones that get media attention. (which is interesting considering that SAIC used to shun any attention (never even put their company name on the buidings or signs or anything. Abhored attention.) )