DynCorp becomes a “real” business

DynCorp, one of the many private military companies, is now being covered by analysts. Analysts Initiate Coverage on DynCorp, in my inbox via the WepsTrade list, brings DynCorp into the real business world of reviews in the financial press. We can look forward to such gems as Credit Suisse’s Robert Springarn bullish attitude toward DynCorp because of a "unique investment opportunity." Springarn gave DynCorp an "Outperform" rating.

Peter Barry of Bear Stearns is more pragmatic, noting the "highly unpredictable" market sector DynCorp operates in. Barry also noted DynCorp "won more than 80 percent of the aggregate value of the contracts on which it has bid — an extraordinary success rate". The investment risks that caused Barry to give only a "Peer Perform" include the real ""politically charged, often clandestine" environments DynCorp operates in, something perhaps others are too enthusiastic to notice.

DynCorp is on a roll. Earlier in June, Moody’s upgraded DynCorp "citing a consistently improving performance and benefits from the company’s recently completed initial public offering."

Things look good for DynCorp and the industry. Wait until the reality sets in.