Seeking Alpha
Editor's notes: Having shed legacy baggage, HSON has several paths to a higher valuation. Buysider Thomas Finser sees a potential double even if the company doesn't succeed in its cost-cutting efforts.

Human resource management expert Hudson Global (HSON) is poised to pop. After suffering through a double-dip recession and multiple restructuring initiatives, it is ready to profit from: (1) continued SG&A cost reduction, (2) recovery in depressed European markets and, (3) improved execution from new management. With tepid end-market recovery and continued progress on new growth initiatives, Hudson can deliver triple-digit total shareholder returns (TSR) in the coming 12 months. Its sum of the parts valuation, balance sheet flexibility and a key activist investor who recently joined The Board of Directors, mitigate investment risk.

Financial Snapshot

  • $80m market cap ($2.50 per share on 32m outstanding 8/22/13)
  • 2012 Revenue $777m (-16% YOY)
  • Net cash $27m as of Q2 '13 plus

Only subscribers can access this article, which is part of the PRO research library covering 3,741 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: