http://www.moneyam.com/action/news/showArticle?id=2270344

...Interesting response by our lot.

the americans are going after BAE not for bribery but because the contract was so big $$$ that they obviously think they should have had it and we are so simple that we think they would never do anything nasty like Bribery!

http://moneyam.uk-wire.com/cgi-bin/articles/200710020917329408E.html


Seems rather a lot of selling today by Directors, but price up 3p.

From 23rd Dec:
"LONDON (ShareCast) - Defence and aerospace firm BAE Systems was flying high on Tuesday following an upbeat research note from Goldman Sachs.

The US bank believes the stock has been weighed down by a wall of worry linked to the US and UK defence budgets, the slumping oil price and concerns over the companys pension deficit.

Against this, Goldman Sachs points out that the companys balance sheet is healthy and its cash flow is robust. Goldman Sachs has a buy recommendation on the stock and a price target of 433p."

Forecast '09: Yield 4.5%, P/E 9.2, EPS growth +9%

Brokers certainly like the look of this one...

BAE SYSTEMS PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

SG Securities
24-02-09 BUY 41.29 15.52 43.33 16.45

Exane BNP Paribas
24-02-09 HOLD 2,027.00 40.69 15.59 2,200.00 43.59 16.76

Evolution Securities Ltd
20-02-09 BUY 2,218.00 46.00 15.50 2,446.00 50.10 16.50

Numis Securities Ltd [R]
19-02-09 BUY 2,023.00 41.30 16.20 2,186.00 44.20 17.50

Charles Stanley [R]
13-02-09 BUY 40.90 43.70

NCB Stockbrokers Ltd [R]
04-06-08 ACCU 44.80 13.73

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 2,121.43 40.99 15.51 2,321.62 43.46 16.48
1 Month Change 98.43 -0.01 -0.27 183.57 -0.14 -0.29
3 Month Change 107.03 -0.24 -0.35 118.18 -0.40 -0.36


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS 59.76% -13.68% 6.03%
DPS 14.29% 14.04% 6.22%

INVESTMENT RATIOS

2008 (A) 2009 (E) 2010 (E)

EBITDA m 2,798.00m 2,910.00m

EBIT m 2,139.17m 2,262.54m

Dividend Yield 3.53% 4.03% 4.28%

Dividend Cover 3.49x 2.64x 2.64x

PER 8.11x 9.39x 8.86x

PEG 0.14f -0.69f 1.47f

Net Asset Value PS p 235.65p 264.80p

Broker Snap: BAE forecasts set to move up

24 Feb, 2009 12:32


Consensus estimates for BAE Systems' earnings are likely to be bumped up to reflect currency benefits, reckons broker Charles Stanley.

"Current estimates for FY 2009 are 20,409m sales (2010e: 21,263m), 2,535m EBITDA (2010e: 2,644m), 2,093m pre-tax profit (2010e: 2,237m), 42.1p EPS (2010e: 44.5p) and 15.6p DPS (2010e: 16.9p)," the broker said.

"If the current planning rate of $1.50/ materialises, trading results stand to benefit substantially from continued weakness in sterling," Charles Stanley analyst Tina Cook reckons.

The broker has a "buy" recommendation for the defence company, and believes that while the group will not be immune to the impact of the global economic slow-down, "it is well positioned with a large order book that provides visibility going forward, a conservatively managed balance sheet, a broad base of programmes and geographical reach."

Business Financial Newswire
"BAE Systems has been notified by the US Department of Defence (DoD) that it has not been awarded a follow-on contract for production of vehicles ubnder the Family of Medium Tactical Vehicles programme.

BAE says the full implications cannot be assessed until talks with the DoD have been completed regarding their intentions to move the programme to the new arrangements.

The current contract sees production continue to the end of 2010.

The Company's assumptions anticpate FMTV sales in each of 2009 and 2010 of some $2bn.

It is not anticpated that this planned activity will be impacted by this decision.

BAE had planned for FMTV sales to reduce to less than $1bn per annum from 2011 onwards."

Business Financial Newswire
"BAE Systems is buying VT Group's 45% shareholding in BVT Surface Fleet for 346m.

VT Group will inject 43m of capital into BVT in settlement of other matters, including claims in respect of certain export contracts which were contributed by VT Group into the BVT business.

And VT Group will pay a further 4.7m to BVT in respect of certain inter-company balances.

BAE Systems will receive from VT Group in cash at completion of the transaction approximately 70m in deferred payment for the sale in July last year to VT Group of BAE Systems' 50% shareholding in Flagship Training. "

SFO To Prosecute BAE For Overseas Corruption Offences


LONDON -(Dow Jones)- The U.K. Serious Fraud Office said Thursday it intends to seek the Attorney General's consent to prosecute BAE Systems PLC (BAESY) for offences relating to overseas corruption and will prepare its papers to be submitted to the Attorney when the SFO considers it is ready to proceed.

MAIN FACTS:

-Follows the investigation carried out by the SFO into business activities of BAE Systems in Africa and Eastern Europe.




Followed quickly by :-

BAE Systems Seeks To Resolve Issues with SFO




LONDON -(Dow Jones)- BAE Systems PLC (BAESY), the U.K. defense company, said Thursday it continues to expend considerable effort seeking to resolve, at the earliest opportunity, the historical matters under investigation by the U.K. Serious Fraud Office, or SFO.

MAIN FACTS:

-BAE Systems at all times acted responsibly in its dealings with the SFO

-If SFO obtains the consent and proceedings are commenced, BAE will deal with any issues raised in those proceedings at the appropriate time and, if necessary, in court.

Storm in a teacup, imo. Investigation has been rumbling on for 6 years apparently & opinion seems to be that HMG will ensure nothing too severe happens to BA.

Yes Agreed - still good for a +11 short (now closed).

Goes ex-divi 21/10/2009 Bae Systems Plc (BA.) Ex-dividend (6.4p)

Interim Management Statement.

Business Financial Newswire
"BAE Systems is setting up a joint venture with Mahindra & Mahindra to create a land systems focused defence company in India.

BAE Systems will have a 26% shareholding in the joint venture and Mahindra will have a 74% shareholding.

The parties have agreed to contribute US$21.25m, with BAE Systems investing US$5.83m in cash and Mahindra contributing the balance.

Completion of the transaction is conditional upon required regulatory approvals and the joint venture is expected to be established in the first half of 2010. "

Business Financial Newswire
"BAE Systems share price rose more than 8p to 346.9p in the immediate aftermouth of an announcement that it was being fined $400m for making false statements on US regulatory filing.

The Company also said that it had reached agreement with the SFO regarding the payments to a former marketing adviser in Tanzania and will pay a 30m penalty for a breach of duty on accounting records.

The market was intially relieved that the fines were not bigger and the shares were in demand just before the close, up 8.3p to 348.8p.

Earlier in the day Nomura had put out a buy recomendation arguing that the stock was cheap and the cash generation was strong. Normura's target price is 450p. "

"On 27 August 2009 BAE Systems announced that it had been notified by the US Department of Defense (DoD) that it had not been awarded a follow-on contract for production of vehicles under the Family of Medium Tactical Vehicles (FMTV) programme.

Following protests of that decision the US Government Accountability Office recommended a re-evaluation of the offerors' proposals.

The Group has now been informed that the decision not to award the contract to BAE Systems has been confirmed. With confirmation of this decision the Group will include in its 2009 accounts an impairment of goodwill and other intangible assets amounting to 592 million relating to the Armor Holdings Inc. transaction and specifically the FMTV product line."

harry does that mean no more back handers ...no more contracts, they are going to have to find a new modus operandi pretty fast.

ha bloody ha! ..... what's the diff between a secondary commission and a bribe? ..... bugger all, except that BAE didn't show secondary commission in its books, as that would have pointed the finger too precisely ..... whole thing was just sour grapes by Boeing and/or Lockheed.

everyone knows that if you want to do biz in many areas of the world, the wheels have to be oiled

I have never actually owned this share but for some reason it's my number 1 SB beginning of December for the last 4 years, it just seems to like Xmas :o) Goes down in Jan and then just meanders with the occassional rally during the year, amazing! Sorry that is no help whatsoever just something I have noticed.

Big company but seems to be run by those with little concern for shareholders.