The once-storied Booz Allen Hamilton (BAH) is now sullied with one scandal after another. From the ignominious honor of having employed not only one, but two of the most damaging leakers in government history - National Security Agency (NSA) contractors working for Booz Allen Edward Snowden and Hal Martin - the company is now under civil and criminal investigation by the Department of Justice (DOJ) and SEC for how the company allocates indirect costs, or costs that the government should not otherwise be responsible for reimbursing as part of a contract.
Once described as the “world’s most profitable spy operation,” Booz Allen is a shell of what it once was. Saddled with legacy debt from its days under the thumb of the Carlyle Group and reeling from three massive security breaches that have compromised Booz Allen’s prized position with government customers, the day of reckoning for Booz is on the horizon. This stock has been lofty for far too long (up 122% since disclosing Edward Snowden was a Booz Allen employee) and is on its way to a more than 50% decline in the near term.
