"This
show is entirely without a moral compass, but I have found two co.s
that do pretty much the same thing; two Hessians that have been
receiving a lot of press coverage; two mercenaries that look a whole
lot different.
What
we've got is DynCorp (DCP) and CACI (CAI).
In this game, you always want to find two co.s that do the same
thing. It lets you set up a straight comparison, and those
give you a better sense of what something's worth.
CAI and DCP give us a real easy comparison, because one such a good job
and one does a less good job.
In a vacuum, since its a good sector, a bad investor might want to buy
DCP. But we don't invest in a vacuum, and on Mad Money, we
try to be good investors.
Where your wallet, and not your conscience, is concerned, I think CAI's
got DCP beat too.
There is speculation that CAI being bought - or rather stolen, given
the price being tossed around - by BEAV - that's also two thumbs up,
way up.
If I were at my old hedge fund, I'd be shorting DCP and long in CAI.
The bottom line!:
I think you should buy CAI and I think you should sell DCP."
