Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of government technology and consulting firm SRA International
So what: Over the past two days, SRA has announced two new contracts. Yesterday, it revealed that it had won the Special Operations Research, Development and Acquisition Center (SORDAC) Program Executive Office-Fixed Wing (PEO-FW) task order (now ain't that a mouthful?). The contract is worth $15.3 million over five years. Today, the company announced that its Era a.s. subsidiary was picked to install its surveillance system for Germany's Berlin-Brandenburg International Airport. Though SRA didn't disclose the exact amount of the contract, it said that Era contracts typically run in the $1 million to $2 million range, with a top end of $5 million.
Now what: Considering that SRA logs more than $1.5 billion in revenue per year, it seems a little suspect that the contract news is the full reason for the stock's gains today. It could be that investors are also simply getting more bullish on the stock, as they look past goodwill impairments that dragged down the past year's results and anticipate a healthier bottom line in 2011.
Want to keep up to date on SRA International? Add it to your watchlist.
