Booz Allen’s Bumpy Ride

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Now, listen closely. There’s a rather peculiar business called Booz Allen Hamilton (BAH 10.64%). They’re a sort of brain-for-hire, a company that whispers secrets into the ears of governments. And today, those whispers have turned into a bit of a squawk, as their shares tumbled downwards like poorly baked soufflés – nearly 11% by mid-afternoon, if you please. The trouble? A rather sticky situation involving the U.S. Treasury, and a fellow named Littlejohn.

A Leak and a Lament

You see, the Treasury Secretary, a Mr. Scott Bessent (a man who clearly enjoys wielding power like a particularly unpleasant garden gnome), decided to cancel all contracts with Booz Allen. Why, you ask? Because of a dreadful leak. A chap named Charles Edward Littlejohn, an employee of Booz Allen, decided to share tax records. Not just any tax records, mind you, but the tax records of hundreds of thousands of people. Including, rather audaciously, the tax records of President Trump himself!

Littlejohn, it seems, had a penchant for sharing confidential information with newspapers – the New York Times and a rather inquisitive outfit called ProPublica. He’s now residing in a rather less comfortable establishment (prison, you see), having been sentenced to five years for his troublesome behavior. Bessent, puffing himself up like a prize-winning pigeon, declared it was all about rooting out “waste, fraud, and abuse.” Honestly, the man speaks in riddles.

The contracts cancelled amount to $21 million in revenue, which, while not a king’s ransom, is still a significant chunk of change. Booz Allen insists they “consistently condemned” Littlejohn’s actions – a bit like a fox condemning the farmer for setting traps, wouldn’t you say?

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A Difficult Climate for Dividends

Now, as a dividend hunter, this is where things get interesting. Booz Allen does a great deal of work for the government, and governments, as we know, are rather fickle creatures. The current administration, led by a gentleman with a fondness for dramatic pronouncements, has been busy trimming budgets and generally making life difficult for consulting firms. Booz Allen’s stock has halved since November of 2024 – a truly dismal performance.

The worry, you see, isn’t just the $21 million. It’s the possibility that more contracts might be cancelled. This creates a rather unsettling climate for those of us who seek a steady stream of income from our investments. The temptation to “buy the dip” is strong, but I wouldn’t advise it just yet. The consulting industry is looking rather rocky, like a path riddled with potholes.

My advice? Monitor the situation carefully. Watch for signs of improvement, a change in the wind, perhaps. But for now, I’d suggest keeping your powder dry and seeking more reliable sources of dividend income. There are plenty of other fish in the sea, and some of them are far less likely to be caught in a governmental squabble.

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2026-01-26 22:13