Science Applications International Corp (SAIC)

[extra]

Lots of SAI info available here: WEBSITE:http://www.saic.com/

and a little in the iBox above.

Basically, SAI is somehow involved in almost everything
that is funded by the Fed. Gov't.

They have an 'Energy Group' , [or 'Business Unit'],
or whatever they call it. It no doubt includes 'Clean Coal'.

SAI hardly ever builds 'big systems', or big hardware,
like tanks + missiles, etc, but is always 'involved',
usually in the new technologies before production, and
'Systems Integration' + Testing as a new system is developed
and deployed. Sometimes they also get long-term contracts
to operate high tech systems.

Much of their work is very 'high level', and rarely discussed.

Occasionally, SAI does something 'public', for fun.
Recently, they were on the winning team for the unmanned
vehicles that 'raced' from Barstow, CA to Primm, NV.
Previously, they were on an 'America's Cup' team, and worked
on hydrodynamic design of the hull + keel.

SAI hardly ever advertises, because they don't sell to the
public. And, all of their potential Gov't customers already
know them very well, because they already work everywhere.
Usually at the very highest levels of large + new-tech
Gov't programs, especially DoD + DoE.

SAI has always had an amazing ability to 'get lucky', every
few years, almost as if it were planned + scheduled. Could
be, because, when you work at the highest levels of new
technologies, that receive long-term Gov't funding, you have
an 'insight' into what is coming [and will be profitable].

My favorite SAI 'got lucky' story, was their 100% cash
purchase of a small private moderate-tech company, for
$50 Million in ~1997. Even though SAI was private [until
Oct 2006], they did an IPO for the small company, and a
'Secondary Offering' a little later, and finally, a sale
of their last remaining ~22% to VeriSign. All-in-all, SAI
collected ~$4 Billion in profits, within ~5 years, from
their 'lucky' purchase of small company, with only 1
'sole source' Gov't contract, which the Gov't soon decided
to 'put out for competition'. Thus, the 'monopoly' held by
the small company was gone, forever. That's usually very
bad news, like losing your only patent, and having to start
competing with the 'big boys', who are now allowed to copy
your technology, and undercut the price. And, that's exactly
what happened. As a monopoly, their 'product' sold for
~$70 for the first 2 years, and ~$25 to renew, annually.
The price today is as low as $1 per year, but, they are
still 'in business' and making a profit.

In case you have not yet guessed. SAI had bought NSOL, and
did the IPO + Secondary, and sold the rest of it to VeriSign,
which still owns it. NSOL = Network Solutions, the Real
Inventor of the Internet, as we know it today. In the early
days, only the Federal Gov't needed an internet, to connect
the largest computers in the U.S., to do research that
required most of the world's computer power, at that time.

No outsider know what could be the current 'insights' of SAI.

But, as an investor, and an early-retired former employee,
I personally know that my first shares have a current basis,
after many splits, of $0.042. And, last Friday, they closed
on the NYSE at $19.13 each. So, that's up, 45,477% ,
in 31.25 years, since October, 1977. If you do the math,
That's a compound annual growth of 22.4% , for 31+ years,
with no taxes, if you don't sell. Except for a 33% 'Special
Dividend' in Oct 2006, right before the IPO, to return a
huge cash hoard to the employees, who earned it, since 1969.

SAI is an amazing company. And only the tip of its iceberg
is publicly discussed. Most believe that SAI has 'created'
thousands of Millionaire$, including secretaries, who, like
all employees, got ~4% as a yearly bonus, in SAI stock, paid
into a tax-deferred retirement plan. Many stayed employed
for 20+ years. Just for fun, do the math and see what happens.

The Miracle of Compound Investing.
Save $1000 yearly, for 27 years, compounding 22.4% annually.

extra, Sincerely + GLTY