Qinetiq is the newly listed (and "commercialised") UK defence and security research laboratory (previously a governmental agency). Having floated with a bloated 200p price tag, we waited for the inevitable post-IPO correction to gain an attractive entry point below 180p where we believe there is now virtually nil value attributed to the numerous "projects" the geeks and scientists have in the pipeline (and unlike the old days, when it was in the public sector, the company is now developing technology that actually serves a commercial purpose). Qinetiq is also attempting to enter the US defence technology market via acquisitions and transfer of UK technology - again, the current share price assigns limited success by the company in this respect. With the risks in our view skewed to the upside and the share price currently offering absolute value, the stock is now a buy.
| Sedol |
Type |
Price |
Date |
| B0WMWD0 |
Buy |
£ 1.85 |
20/11/2006 |
| B0WMWD0 |
Buy |
£ 1.772 |
11/10/2006 |
| B0WMWD0 |
Buy |
£ 1.771 |
24/05/2006 |
| B0WMWD0 |
Buy |
£ 1.769 |
23/05/2006 |
|
