I have been following Mastech Holdings (NYSEMKT:MHH) for quite some time. It was spun off from iGate (NASDAQ:IGTE) during the worst possible time in 2008, and the stock was crushed to unbelievably low levels. The stock tripled since the 2008 lows, but it is nowhere near what it was when it was originally spun off. Finally, on Thursday, December 23, 2010, after the market closed, the company announced that its Board of Directors authorized a share repurchase program of up to 750,000 shares of the company’s common stock over the next 24 months. This represents about 50 percent of the float. Additionally, 750,000 shares equals roughly 340 days of the last three months’ average daily trading volume.
This could turn out to be the best Christmas gift ever to current shareholders as the stock can take off as early as Monday, December 27, 2010. I wouldn’t be surprised if we see a price of $7 to $8 per share within the next 12 months. About a month ago, I had lunch with the CEO, and he made several remarks about the stock being unbelievably cheap ($3.45 per share with $1.58 of cash per share). Now, he is putting his money where his mouth is.
Here, is a link to the first article I wrote about Mastech.
Then, in May of 2010, I interviewed the CEO. You can access the interview here.
Disclosure: I, or persons whose accounts I manage, own shares of Mastech Holdings (MHH). This report is not a solicitation to buy or sell securities. Neither Mariusz Skonieczny nor Classic Value Investors, LLC, is responsible for any losses resulting from purchasing or disposing shares of Mastech Holdings (MHH). You are advised to consult your financial advisor or conduct the due diligence yourself.