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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Secondary Recommendation

Qinetiq - Elimination of overhang could benefit shares of defence firm

October 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • QQ.
  • Price:
  • 218p
When Qinetiq (FT sector: Aerospace & Defence), the former research arm of the Ministry of Defence (MoD), floated in February 2006, most column inches focused on the politically outrageous returns achieved by its backers. Private equity firm Carlyle and chief executive John Chisholm, who originally invested £42m and £129,000 respectively, went on to trouser £340m and £24m. The suspicion among critics was that the Government originally sold these minority stakes far too cheaply. Be that as it may, the fact is that Qinetiq, which has increased its underlying profit by 40% to £127m over the past two years, is actually quite a decent company and the only reason the shares pulled back after achieving a new high of 228p on 3 Sep ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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