Batten Down The Hatches

Shared Data Among Battlefield Operating Systems

I am no friend to hackers.  Thanks to hackers, we have to password-protect wireless routers, use firewalls, install virus and malware scanners, and other security measures.   There are plenty of good reasons why not all information should be free.  No one but my family and me has any business in my computer.  As far as I’m concerned, the Hackers’ Manifesto is the fast lane to 10 to 20 years in  prison.

An even bigger threat, though, are terrorists and foreign powers using the same types of tools to gain access to government secrets or to bring down communications, electric, or any other system that relies on computer technology and networks.

Mantech International Corporation is one of the world’s largest electronic and cyber security firms.  The people they hire make the average hacker look like a minimum wage entry-level Nerd Herd tech at the Buy More.  They provide “systems engineering, software development, enterprise security architecture, information assurance, intelligence operations support, network and critical infrastructure protection, information technology, communications integration and engineering support.”

Mantech started with a couple of guys in 1968 and is now a  a nearly two billion dollar a year business.  President and Chief Operating Officer Robert Coleman, who came aboard when his company, Integrated  Data Systems, was acquired by Mantech in 2003,  is stepping down in a few months.

Most of their work is for various branches and departments of the U.S. government.  Their clients range from the Central Intelligence Agency to NASA.  And therein lies a weakness.  Reviewing their annual reports, I discovered that, on average, 95% of their customers are government related.  That weakness, however, creates a strength.

In my cover letter to Board Chairman, CEO, and Co-Founder George Pedersen, I suggested “an expansion of Mantech into the private sector.  I believe that some of the technologies Mantech has deployed in the defense of our country can be deployed commercially.”  Encryption used by the State Department to U.S. Embassies abroad, for instance, could be used for business communications.

With very little effort Mantech could easily become a major player in information technology security, with the C.O.O. leading the efforts to keep private information private.  We are in an arms race with hackers.  Mantech products could help us turn the tide.

Terror of Freddie Macagodzilla

Mechagodzilla Action Figure. It's debt-free!

Let’s say, just for example, that I had my eyes on a Mechagodzilla action figure that cost $20.00.  And for the sake of our argument I had only $5.00.  The dealer would finance the remaining $15.00 at 6.5% interest for 30 years.  I would pay nine cents a month. But wait!  There’s more!

Suppose this dealer then sold the mortgage on my Mechagodzilla to another dealer soon after my purchase.  This new dealer would purchase the promissory note for, oh, say $17.00.  The first dealer has made an extra $2.00 over the list price of the Mechagodzilla.  Meanwhile, Dealer 2 is hoping that the action figure will appreciate in value, and I will sell it in a three years for $25.00, and pay off the note.  Not only does Dealer 2 get the $2.95 in interest during those three years, but he will receive the $17.00 he initially paid to purchase the note.  And I will have made a little bit of profit as well.  If I keep the Mechagodzilla for all 30 years, Dealer 2 gets $34.13, of which  $19.13 is interest. His total profit is $17.13.

Broadly, this is what “securitizing” loans is all about.

Continuing our supposition, let’s suppose that I’ve owned this Mechagodzilla for six years.  I’ve been riding high on the speculative market and Mechagodzillas have risen in value to a massive $28.00!  But the bottom begins to fall out.  Folks are losing their jobs and just don’t have the money to buy Mechagodzillas.  In three months the value of my Mechagodzilla has fallen to less than half of list price.  Now I own a Mechagodzilla that is worth only $9.37 and I still owe $13.79.

Broadly, this is the danger of “securitizing” loans and why our housing market is in such crisis.

Broadly, this is why Freddie Mac is in deep deep trouble.  Much of this quasi-governmental agency’s business was buying mortgages on the secondary market, packaging them up, and reselling them to investors.

David M. Moffett has resigned as CEO of Freddie Mac.  He took the job just last September.  The massive losses at Freddie Mac may have been too much for him to get a handle on.

This is going to be one brutal job, and it’s going to take a Mechagodzilla style of leadership to pull it off.  The first thing I would do is squash this 40 year mortgage concept that’s floating around right now.  I think 30 year mortgages are too long already (I’m on track to pay mine off in 20).    I would also try to minimize the buying and trading of real estate like baseball cards, which played a big part in getting us into this economic morass.  Houses are homes not poker chips.  Adjustable Rate Mortgages are also on my hit list.  ARMs should go down, not up, when interest rates go down.

Give me an Absolute Zero Cannon and let me get to work.

The Tick Tock Man

Somewhere In Time clock, by Infinity Art Furnishings

Once upon a time, when my children were much younger, we were careening down the road at the legally allowable speed when one of them asked “What time is it?” I answered “It depends on whether you are in the front or back seat.”

Turns out, I was right. It’s got something to do with energy, mass, speed, and a whole lot of other math.

The Earth’s gravitational and magnetic field bends time, and among other things, causes satellites in orbit to drift out of time sync. If it weren’t for time synchronization products, I would always be late for lunch (instead of often).

Symmetricom materials say their “Perfect Timing… solutions… have helped define the world’s time and frequency standards, delivering precision, reliability and efficiency… in more than 90 nations.” They have customers in Government, Aerospace, Broadcast, and other sectors. From television stations, to stock markets, to Global Positioning Satellites, if time is a critical componant Symmetricom has something for you, including the spiffy new XPRO High Perfomance Rubidium Oscillator.

Thomas W. Steipp is retiring this year, after more than 11 years with the company, the last ten as President and CEO. He’s leaving the company in a strong position for future growth. In my cover letter I noted that while the Symmetricom is “well known and respected within its markets, I would like to create a stronger consumer awareness, similar to the brand awareness of Intel.”

Wow! Free Stuph!

On their website they have a download of a Windows based program called Symmtime. It’s a highly configurable clock program that syncs with numerous time servers, has hundreds of time zones, and you can have up to 30 clocks on your desktop. I have three: Fort Smith, AR; Tucson, AZ; and Mumbai, India. It’s free, but you do have to register to download it. You can opt out of their newsletters and I have not received any spam from them. This is pretty cool.

Update! (already)

An email from Mr. Steipp:

“I appreciate your interest in the position here at symmetricom, but our position description calls for someone with a much different background than you currently have included on your resume.”

I guess my timing was off.

Securing the Exchange

What better way to relaunch Bob’s Job Blog than by applying for the job of Director of the Division of Enforcement for the Securities and Exchange Commission?

Linda Chatman Thomsen resigned that job this week. She got beat up last week by Congress for failing to catch the alleged pyramid scheme alleged to have been run by Bernie Madoff that caused investors to lose billions of dollars.

Prior to that, though she had a pretty good run at catching the bad guys.  But sometimes things slip through the cracks.  Unfortunately it was $50 billion dollars that slipped through those cracks.

Mary Schapiro is the new Chair of the SEC, and she has a difficult task ahead of her.  As the meltdown in the economy continues, more people and more companies will be looking for ways to squeeze a few dollars, much of it through illegal investment schemes.  She’s the watchdog, but she’s going to need a strong attack dog to go after these scalawags.

I can bring her data analysis skills, extensive interviewing experience, and public relations expertise, all rolled into one tidy package.

Why should I settle for CEO when I can be the bulldog nipping at their heels?  Bring on the quarterly reports.  They’ve met their match.

Bob Job’s Blog: The Bailout Edition

Dow Jones Industrial Average February 10, 2009. Graphic from djaverages.com

Hi there!

Remember me?  It’s been a while, hasn’t it?

A lot has happened since the last time I worked on this.  Obviously, the most significant thing to have occurred is the deepest recession in decades.  You already know all the details so I won’t get into all that.

As the economy looks for solid footing, it appears that there are going to be a lot of changes going on in the executive suites at many companies.  These companies are going to be looking for strong leadership with new ideas.  They need look no further!

It doesn’t matter to me if there will be a salary cap on CEO salaries of companies that accept government bailout bucks.  I’ll manage somehow if my pay tops out at half a million dollars a year.

I am here to serve.