"Since when are you looking at such big cap names!? ;)"

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.)

hhgregg, Inc. (HGG): The stock was downgraded today to underperform by Zacks, shorts as a percentage of the float is 34.20% and they compete in the ultra competitive retail space of Brick-and-Mortars  electronic stores. Oh and insider selling over the past year. But at least for today it continue to defy all odds and was up 7.13%. This move was similar to DECK that popped 15% Friday and up slightly today. Both have large amount of shares short but are aggressively buying back company stock.

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.

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