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Weekly Roundup Mar. 7 – Mar. 11 2016: GovCon Index, Defense Stocks Show Steady Recovery & more

Mar. 7 – Mar. 11 2016

A Note From Our President & Founder Jim Garrettson

The start of March has given investors everywhere a respite of calm so far after a January and February period of across-the-board, worldwide market volatility that carried over from the end of last year.

Concerns over China’s economic picture and low oil prices may still loom over financial markets worldwide but some stability appears to have settled in compared to the panic-like activity from winter.

Our GovCon Index of 30 large, publicly-traded government contractor stocks hit a three-month low Feb. 11 and sat at a decline of 11 percent on a year-to-date basis then.

The Index has climbed back 6 percent since and is down 5 percent since the year’s start as of Thursday, with the S&P 500 composite index down 2 percent year-to-date by comparison.

Within the past four weeks, the GCI has risen 4 percent as investors with an interest in defense and GovCon have welcomed positive earnings reports from the Index’s largest platform and system makers for 2015 and outlooks that forecast continued growth in 2016.

Military truck maker Navistar has been the Index’s brightest star over four weeks with its stock up 45 percent as of Thursday’s close in a period that saw its CEO hint to Reuters the company was open to deals and increased industry partnerships to boost sales.

Traders have also snapped up Engility shares to make that company the Index’s second-largest gainer over four weeks at 35 percent, followed by Cubic at 19 percent and AECOM at 16 percent.

Another earnings season is just right around the corner next month to give us a new gauge of the GovCon sector’s health and its perception in the Wall Street community.


VA Awards 21 Firms Spots on Potential $22B Follow-On IT Modernization Contract
Awardees on the vehicle comprise of nine large, two small and 10 service-disabled veteran-owned small businesses.
GSA Picks 31 for Zone 1 Building O&M Services Under $30B GWAC Program
Nine contractors hold positions under the vehicle’s unrestricted portion and 24 are on the small business exclusive track.
Frank Wiercinski, Mike Kelly Appointed to Leadership Roles at Cubic’s Global Defense Segment
Wiercinski is a retired two-star Army general and former Lockheed Martin executive, while Kelly previously led BD functions for the segment.
TASC, Lockheed Vet Barbie Bigelow to Join Jacobs as CIO
Bigelow will officially join Pasadena, Calif.-based engineering and construction services contractor Jacobs on March 14.
USAF Unveils Northrop’s 7 Teammates on B-21 Bomber Aircraft Development Program
Pratt & Whitney will build the engine while 6 other contractors will focus on mission systems and airframe aspects.
NCR Govt Lead Stan Ratcliffe on Self-Service Tech’s 2016 Prospects & The Future of ‘eGov’
Ratcliffe also reviews two of NCR Government Systems’ major contract awards from 2015 in this Q&A with ExecutiveBiz.
Rick Ambrose: Lockheed Eyes August Completion of 1st Air Force GPS III Satellite
Lockheed’s space systems lead also said the satellite has started a series of electromagnetic interference trials.
Matt Desch: FAA Should Make Aircraft Surveillance System Decision By Year’s End
Iridium’s chief executive said the FAA should move towards the new system before its scheduled full deployment worldwide in 2018.
Robert Work: DoD Seeks Updated Cyber Posture Through Microsoft Windows 10 Adoption
DoD’s number two-ranked official says the shift to Windows 10 also aims to streamline the military’s IT operating environment.
Navy Appoints Rear Adm. John Neagley to Head Littoral Combat Ship Program Office
Neagley is currently assigned at SPAWAR in San Diego and his prior LCS roles include program manager and lead requirements officer.
Anne Rung: Agencies Must Establish Labs for Acquisition Innovation
The country’s chief acquisition officer says the new laboratories should focus on IT investment management and feedback from vendors.
GSA Seeks New IT Schedule Programs Director for FAS
Responsibilities for the new director would include contract operations, business programs and acquisition program planning.

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