This was tweeted last night in a light hearted manner by the super value blogger/investor and resident Sherlock Holmes, Jeff Moore.
This PI :) has been doing deep investigative work on small value stocks and runs a
must visit investing blog “Ragnar Is a Pirate”.
When Jeff is not muckraking
causing severe distress for some small dishonest companies, he may be mistaken for Bob Villa (America’s Handyman) as he works to earn
the title hammering one nail at a time , Donald Trump of the Midwest. Jeff sorry about my disturbing reference to "Mr. Trump" not sure where that came from :) . What is more disturbing I just called “the Don”,
Mr Trump. Full disclosure, I watched parts of the celebrity apprentice last night. okay I know
Back to yesterday's post, regardless of
their size these companies still may deserve a review for most value investors.
Hey in my defense the blog does headline
… Exploiting Market Anomalies
with Data That Has Been Overlooked Underappreciated Or Ignored. : "There
Are No Bad Assets Just Bad Prices".
:)
CACI: CACI
International Inc. (CACI)
CACI was founded
in 1962 with 15,500 employees in over 120 offices worldwide. CACI provides information
solutions and services in support of national security missions and government
transformation for Intelligence, Defense, and Federal Civilian clients.
The short term
risk or potential future depressed margins may be impacted by reliance on
government contracts.
There are a few key
reasons to consider this boring stock. CACI has a highly predictable business with
a historical free cash flow that justifies a higher price using a DCF model. YOY
revenue growth was 24.90%,12.90%,15.35%,13.61% and -4.28 for the annual periods
of 2008 to the current TTM respectively. Management has smartly recognized the company’s
intrinsic value and has been aggressively buying back its own shares. The diluted
weighted average share count as of year end 2008 was 30.61M. This balance was
reduced by 23.10% or 7.01M to the most recent share count of 23.54M. FCF as a
percentage of sales has been consistent with average annual FCF margin yield of
6.5% since 2007.ROE sits at 13.50%
and ROIC at 9%.
CACI trades at
51.10 off the 52 week low of 41.29. The 52 week return was -14.31% with a 52
week stock price high of 63.31.The stock may be
boring but what is not to like with this shareholder friendly stock with a highly
predictable and high FCF margins that has been used to aggressively buy back
their own stock. Just over the prior 5 quarters the outstanding share count was
reduced by 18.10%!
Market Cap:1.18B, Enterprise
Value:1.84B
Price/Book:1.04, Enterprise
Value/Revenue:0.49
Enterprise
Value/EBITDA:5.47 ,Book Value Per Share:49.06
Shares
Outstanding23.01M , Float:20.61M
Shares Short:3.54M
Short % of
Float:15.70% (The short term risk or potential
future depressed margins may be impacted by over reliance on government
contracts. The high short as a % of
float may explain this market sentiment.)
HGG is part of the
small group of companies that aggressively reduce their share count. They
posted 20% ROE and 18% ROIC over the past 4 years indicating a financial well managed
company.
Market Cap:340.99M,
Enterprise Value:302.78M
Price/Sales:0.13, Price/Book:0.90
Enterprise
Value/Revenue:0.12 , Enterprise Value/EBITDA:3.36
Shares
Outstanding:33.36M ,Float:13.84M
% Held by
Insiders:60.18%
I’m all blogged out
for tonight. But investors may want to
check out some stock in the education and services sector that took a hit today.
DY,STRA, CECO
Career Education
Corp. (CECO) caught my attention today with the 9.33% drop. The entire industry
was hit hard today. CECO closed the day at $2.72 per share or 180.06M market
cap. They have 304.44M in cash or 4.60 per in cash.
I will try and
continue tomorrow with some other ideas listed yesterday.