Congratulations to Qinetiq. A solid bet. Excellent products. Management only as good as staff. Staff very competent so will make management look good. management should not squander opportunity. Looks a good future.

This hasn't really joined in the market rally over the summer.

Looks pretty good value having done a bit of research.

If defence budget is not cut and they gain new contracts, or another war starts it should fly up.

A tip by EK and a chart: http://uk-analyst.com/shop/page-article/action-article.show/id-130002538

QinetiQ upgraded to buy from neutral at BA-Merrill Lynch

This would affect QQ. adversely...


British efforts to tackle terrorism and radicalisation in Pakistan have been slashed by 110million due to a Foreign Office budget shortfall.

In an embarrassing admission, the Government yesterday revealed the vital cutbacks blaming the falling value of the pound for the decision.

It comes as Prime Minister Gordon Brown told MPs in the Commons that the crucible of terrorism on the Afghan-Pakistan border remained the number one security threat to the West.

Foreign Office minister Baroness Kinnock told peers at Lords question time last night: As a result of exchange rate movements, the FCO faces a shortfall in 2009-10 of an estimated 110 million; we estimate this shortfall will increase slightly in 2010-11.

'Programmes in Afghanistan in counter-narcotics have been cut, capacity building to prevent conflicts in Africa, counter-terrorism and radicalisation in Pakistan, the list goes on.

test

Test What ?

Good price now, get in before the septics invade Iran

Any views on these? They are obviously vulnerable to any defence cuts etc, but have recently agreed with unions the start of staff/pay rationisation.

Commenting on the union ballot on 28th June, CEO CEO Leo Quinn said, "This result is a credit to our
people in understanding the increasingly competitive nature of our markets.
Whilst this is only one step in a two-year journey, and it is too early to
quantify the impact, this agreement was integral to our plans announced last
month and will enable us to strengthen our UK business. Our priority is to
ensure that we retain the right expertise, flexibly deployed, to help customers
to derive value for money from their defence and security programmes."

Trickeling up they need a war somewhere

Defence research group QinetiQ axes 325 jobs as MoD cuts bite

Recent $2Bn NASA contract win encouraging

QQ. Qnietiq

Lovely breakout on the chart. looks
like another leg up. Fundys pretty
solid aswel, on a multiple of just
over 10 to 2013. very cheap.



QinetiQ Group PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Broker Name Withheld 3
07-02-12 BUY 131.02 16.87 2.70 114.72 14.04 2.78
Execution Noble
09-01-12 BUY 109.00 16.21 4.00 100.00 15.09 4.00
Edison Investment Research
06-01-12 None 108.40 13.30 2.50 112.50 13.80 3.00
Investec Securities
07-12-11 HOLD 136.95 16.75 2.70 108.82 13.29 3.50
Evolution Securities Ltd
30-09-11 RED 107.00 12.90 2.60 114.00 13.80 2.90

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 121.99 15.98 3.03 109.10 14.12 3.31
1 Month Change 2.98 0.43 -0.08 0.84 0.02 -0.09
3 Month Change 17.09 2.69 0.24 0.32 0.54 0.19


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS -36.32% 124.24% -11.60%
DPS % % 8.96%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £167.70m £196.71m £181.74m
EBIT £96.30m £141.46m £127.92m
Dividend Yield % 2.13% 2.32%
Dividend Cover x 5.27x 4.27x
PER 19.99x 8.91x 10.08x
PEG -0.55f 0.07f -0.87f
Net Asset Value PS -25.27p p p

Hemscott premium.

Yes tipped by Investors Inteligence today

QinetiQ (QQ/) - broke the 140p range resistance last week. This signalled that the uptrend is about to reassert, especially as this resistance is the major base ceiling (see right). We buy.



Portfolio Update

We open a long in QinetiQ (see above).

IN SUNDAYS FINANCIAL MAIL...today.

QinetiQ starts tests on new Boeing 737
By Tom Mcghie

Last updated at 5:15 PM on 19th February 2012

Britain's top secret QinetiQ defence company will this week start critical tests on the new Boeing 737 at its world-leading wind tunnel in Hampshire.

The success of the multi-billion pound Boeing 737 ‘Max’ project depends on the outcome of four months of tests on its efficiency at take-off and landing speeds.High-speed tests will be done in Seattle.

The aircraft, which is due to come into service in 2017, is expected to be 12 per cent more efficient than the present 737. A new engine and wings with shark-like fins are set to make it significantly more economical to run than its rivals.

In 2004, Boeing agreed a ten-year deal to use QinetiQ’s wind tunnels at Farnborough.

Scientists there have built a global reputation, having successfully tested Boeing’s 777 series and the Dreamliner.

QinetiQ shares neared a 12-month high on Friday, closing at 148p.


http://www.thisismoney.co.uk/money/markets/article-2103384/QinetiQ-starts-tests-new-Boeing-737.html

Mentionned in the National Press
yesterday, please see post above.

IG Index


Client Sentiment

LONG 95% of IG clients with open positions in this market expect the price to rise
5% of IG clients with open positions in this market expect the price to fall

goldy you may well find most IG customers are optimists and are always long

Just using it as a proxy as IG is the biggest of them all.

Changes every 15 minutes anyway and shows on a daily basis how sentiment changes.

We should have a pre-close trading update from aerospace and defence technology specialist QinetiQ on Monday, ahead of interim results due in November And I think engineering and defence companies are well worth a look these days, having suffered during the economic downturn.

Earnings per share figures have slumped over the past three years, and the dividend was stopped in 2011. But forecasts for the year to March 2013 suggest a return to pre-crash levels, with round 15p per share being forecast -- today's price of 174p turns that into a price-to-earnings (P/E) ratio of under 12. The recovery in the dividend is expected to continue this year and next, too, though there's only around 2% on the cards as yet.

Still, it's a recovering industry, and it seems like a good time for investors to give it some scrutiny.