Market Watch: Federal IT companies hold steady but uncertain lead

<FONT SIZE=2>Before mid-2000, commercial information technology companies, those serving predominantly commercial and state and local markets, outperformed the federal IT companies, both on an operating basis and in the stock market. </FONT>

Market Watch: A bullish long-term outlook for fed IT, defense companies

<FONT SIZE=2>The sun has shone brightly during the past year on federal information technology and defense companies. Revenue growth, profit margins and public market valuations have grown significantly. More importantly, the evidence supporting a longer-term period of sunshine continues to accumulate. </FONT>

Market Watch: M&A pace picks up for government IT players

Merger and acquisition activity<FONT SIZE=2> in the government IT sector has increased significantly in the first nine months of 2002. Measured by the 79 transactions in this industry sector in the 12 months ended Sept. 30, this recent pace is a 44 percent increase over the 55 M&A deals announced in 2001. This pace is nearly equal to the 78 transactions announced in 2000, and about 20 percent above the average annual rate of 64 deals during 1998 to 2000.</FONT>

Market Watch: Sizing up who will succeed in government IT market

Since Sept. 11, investors and<FONT SIZE=2> market analysts have correctly identified the government information technology market as a good sector for investment. While this is a sound strategy for many reasons, all companies will not prosper. </FONT><p>

Market watch: Buyers have more choices in M&A market

Notwithstanding the growth in government spending for defense, intelligence and homeland security purposes ? effectively an expansion of the government information technology market ? the economic logic supporting continued consolidation within the industry is still valid. That's because the growth rates required to support current valuations are not achievable for most companies from organic growth alone.

Market Watch: Procurement policy changes could sink industry profits

The government services and defense industry is basking in the glow of positive investor sentiment. Growth in government spending, ongoing needs for technology infusion and refreshment, along with more rational, commercial-like procurement processes provide a sound basis for revenue growth and earnings visibility going forward.

Market Watch

The most common question among industry executives and investors in the government information technology and defense sector is: Will public market receptivity to the industry remain high, continuing to support new initial public offerings and valuations?

Market Watch: U.S. market draws British firms' acquisition interest

Discussions with senior executives at defense companies based in the United Kingdom reveal a common objective: expanding their presence in the U.S. market.

Market Watch

By almost any standard, the public markets are more interested in the government services and aerospace and defense sector than any time in memory. This newfound affection is particularly startling, considering the widespread antipathy with which investors customarily view the government and defense sector.

Market Watch

These are heady days in public equity markets for federal information technology and defense stocks. For owners and executives at privately owned defense companies, a correct interpretation of pricing behavior in the public markets is essential.

Market Watch

It's been a great ride over the past year for investors in the government information technology and defense services industry. Most pricing indexes are up 40 percent to 50 percent or more since February 2001.

Market Watch

The emergence of the government technology sector, or GTS, as a hot investment opportunity presents important questions for owners and executives running privately held companies.

MARKET WATCH

I don't know about you, but I feel much better about America today than I did two months ago. During the past year, the country seems to have been cleansed of excesses and mistaken priorities. Generally, the spirit of America is strong, and determination is steadfast as we confront a clear threat to our freedoms and governing principles.

MARKET WATCH

Most of the time, investor excitement and public-sector-oriented companies are mutually exclusive. But not now. The emergence of a strong appetite and intense interest in companies serving government and defense markets has been dramatic.

MARKET WATCH

Increasingly, the major players in federal information technology and defense technology services, or government tech services, are the aerospace and defense primes.

MARKET WATCH

The globalization of commerce, technology and finance has begun to affect the aerospace, defense and public-sector markets. The relaxation of many of the impediments to more open government markets is gaining momentum in the United States, as well as in the United Kingdom and European markets. This trend is likely to continue and, more probably, to expand in the years ahead,

MARKET WATCH

The concept of companies working together to deliver products or services isn't new. What's changing, however, is the nature and scope of corporate alliance arrangements, reflecting the explosion of this business tool across nearly all industry categories.

MARKET WATCH

Merger and acquisition activity in the defense and government services markets remains robust, even as many domestic buyers have slowed their pace of buying because of stock price declines or tightening of debt and mezzanine markets.

MARKET WATCH

Over the past few years, many industry executives and shareholders, as well as government officials, have expressed concern about the increasing risk faced by smaller government information technology companies in the evolving federal procurement environment.

MARKET WATCH

Most investors are hiding in underground bunkers by now and have ceased their declarations that each successive market low is a definite buying opportunity. This is particularly true for technology investors with a predominance of focus on the Nasdaq.