Let's estimate how the stock pop might work here...

DynCorp on a cost plus type contract would get an overhead factor for each
cop they field, plus administrator to oversee them.

They are advertising for police who they will pay $79-101,000 (See ad below)

So let's guess for every four cops DynCorp will need one administrator and
one clerk. So one cop is

$85,000 average cop
$85,000  cop support and management, other direct contract support

$170,000 total direct costs

Let's guess that DynCorp's overhead should be about 1- 1.5 times direct
costs. That would add another $170,000 or $255,000 in overhead for a total
direct and indirect costs of $390,000 to $425,000 per police. It would be
interesting to look at how much they can load into the overhead. It should
include costs like fees paid to lawyers and investment bankers for mergers
and acquisition fees. It would be interesting to see if it included their
costs of running their internal stock market making operation. It would
certainly include the costs of top management, etc.

Typical profit margins for federal cost plus contracts run at 5-10% so
$39,000 to $42,500 per policeman

Under these assumptions, the total cost to the American Taxpayers would be
$429,000 to $567,500 per policeman

The total increase in DynCorp stock value would be $1,170,000-1,2750,000 per
policeman (pop of 30X income based on Dyncorp's internal market making as
reported in SEC filings)

The only problem is that the American taxpayer only makes $36,000 a year,
and the people being policed make much less (what is the annual average
income in Kosovo?).  Meantime, all the guys taxing them and spending the
money are making far more.

Let's say if DynCorp gets a contract to move 50 international location for
"peacekeeping" their stock value would go up as much as $50MM plus depending
on the length of the contract.

The American people would get 0% of that $50 MM plus.

 http://copspotweb.hypermart.net/employment/open-chief.htm

DynCorp, Technical Services

                        International Police Officer-
                        $79,000 to $101,000

                        Indefinate
                        On behalf of the United States Department of State,
DynCorp Aerospace Operations (UK) Ltd.,
                        is seeking active, recently separated, or retired
law enforcement officers to accept a challenging
                        and adventurous assignment within the International
Police Programs. Officers must have a
                        combined total of eight (8) years work experience
with at least five (5) years being at the position
                        of sworn civilian law enforcement, and who are at
least 26 years of age with no maximum age
                        requirement. Annual compensation begins at $79,000
and may exceed $101,000.
                        Applications are being accepted on a continuing
basis, for immediate and future hire. Fax
                        Resumes' to (817) 570-2120, email Resumes' to
[EMAIL PROTECTED], or apply
                        immediately via our website at
www.policemission.com. To speak to a recruiter, call toll-free
                        1-888-466-5417.
                        An Equal Opportunity Employer.
                        http://www.policemission.com--
[EMAIL PROTECTED]



Reply via email to