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I recently reviewed the second quarter results and offered valuations for three small defense contractors: ManTech International  (MANT), VSE Corporation  (VSEC), and CPI Aerostructures (CVU).

The valuation approach I have taken is based on owner earnings, which is a variation on free cash flow. Basically, owner earnings is free cash flow with working capital removed from consideration. It is computed as net income plus depreciation and amortization minus capital expenditures, and adjusted for one-time items if necessary. An argument could be made for only subtracting off the portion of c

In my recent valuation of VSE Corporation (VSEC), I suggested waiting for the price, which is currently around $40, to pull back to the range $33-$35.

However, I have decided to pick up a few more shares at the current price based on what I believe to be a better valuation than previously discussed.

In a recent article, we noted that VSE Corporation (VSEC) has been growing nicely over the last 5 years. On an annualized basis, revenue growth is 49%, net income growth is 63%, and diluted EPS growth is 58%. It is instructive to examine the company's funded backlog. As noted in the company's Form 10-K, the "funded backlog for government contracts represents a measure of the Company's potential future revenues and is defined as the total value of contracts that has been appropriated and funded by the procuring agencies, less the amount of revenues that have already been recognized on such

Let’s first take a quick look at how VSE Corp. (VSEC) has been doing over the last 5 years and then look at the results of the first quarter of 2008.

Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice ! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisers prior to making any investment decision based on this website.

I received a nice letter from Kay, asking me about my VSEC comments . She wrote:

"Hi Bob and its great to find your blog. what do you think of vsec from now on, its around 43. you think its a good time now to jump in or to wait for a minor pullback around 37 and go long at

CLICK HERE FOR THE PODCAST ON VSE CORP

I did a podcast on this stock tonight and thought I ought to do a brief posting on this company. I do not own any shares nor do I have any options on this stock.

VSEC made the list of top % gainers on the NASDAQ today, c