9/05/2013

Potential Value under .50 Cents and worth a Closer Analysis

Hooper Holmes Inc. (HH): does a medial examines 3 times every minute, 24 hours a day, seven days a week. They arrange more medical exams than any other company and process millions of specimens in their laboratory.

Current price is $0.40 per share.

Value investing shops have been invested in HH as the stock has been on a multiyear decline. Heartland Value has been a share holder for many years and continues to add to their position. Heartland now owns 19.85% of the shares outstanding. Back in 2002 HH was trading over 10 per share back.

Hooper Holmes has a market cap of 27.95M with a 23.81M enterprise value. TTM sales were 138.53M and gross profits 31.32M. Insiders own 13.51% and purchased more company stock today.

"but there's one more thing" Steve Jobs

The company owns a five-building complex located at 170 Mt. Airy Road, Basking Ridge, New Jersey. The property was on the 1998 10k. I don’t know when the property was purchased but it’s safe to say it’s on the books well below the market value. A quick search shows that many single family homes currently list at the high end for +900,000 in Basking Ridge, New Jersey only 40 miles from NYC.

Director Gus Halas reported (09/05/13) the purchase of 100,000 shares for .40 per share.


3 comments:

Miguel Palma said...

Why are you comparing the 170 Mt. Airy Road property to single family home values? It's a commercial building and you're using residential valuations.

Miguel Palma said...

Why are you comparing the 170 Mt. Airy Road commercial property to residential property values? Did I miss something?

ShadowStock said...

Hi Miguel

Sorry about the confusion. It was just a starting point to think about the real estate value as a potential extra margin of safety.

The post was just a quick thought driven by insider purchases today to introduce “potential value worth a closer analysis”.

As with most of my posts my main focus is to provide the best quality idea generation, not intrinsic value analysis. Sorry for any confusion.

But thanks to Jeff at the must visit blog http://ragnarisapirate.blogspot.com


The value of the “property is assessed at >$5mm”

See link below for property record (thanks Jeff)

http://www.loopnet.com/Property-Record/170-Mount-Airy-Road-Basking-Ridge-NJ-07920/UbH8-3Y3g/Tax/#