Investment Firm Picks Up Government Coverage

The investment firm Friedman Billings Ramsey Group Inc. is picking up its coverage of the government information technology services market, calling it one of the few IT services markets that is expected to grow over the next year.

Chris Penny, an FBR senior vice president, is heading up the research efforts for the Arlington, Va., firm. He served for six years as officer in the Navy's nuclear submarine program. He also was a consultant at Electronic Data Systems Corp. for a year before joining FBR more than three years ago.

In a report released Oct. 29, Penny wrote that the :e-solutions companies that were once leaders of the New Economy have fallen from grace with unexpected speed and impudence. As this was happening, sentiment quickly turned positive for IT service providers focused on the government market."

This is the first government focused report FBR has published, Penny said. Others will follow, with one expected before the end of the year, he said.

"This is a long term model for us," he said. "Our goal is to create a rapport with the Hill and communicate that to Wall Street."

The report provides snapshots of 10 publicly traded companies and 16 private companies that largely conduct business in the government marketplace. The report also explores legislative, business and other trends driving the government market.

Penny covers two companies that are working in the government market , EDS and Keane Inc. of Boston, but he said he plans to pick up coverage on more companies that are primarily government contractors.