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PRO Articles
PRO articles cover stocks that fly under most investors' radar screens.
  • NV5 Holdings' Management: Been There, Done That, And Doing It Again
       • Thu, Feb. 19 NVEE 4 Comments

    Summary

    • NV5 Holdings fits our criteria for a GeoBargain; it's cheap and it's led by a management team with significant pedigree and a proven track record.
    • Dickerson Wright, the company's founder, has a history of entrepreneurial success that we believe will continue with the growth of NVEE.
    • Management is targeting $300 million revenue and 12% to 15% EBITDA by 2016, a feat that we think it can achieve and is supported by industry dynamics.
    • We believe that recent cash from a warrant redemption will be put to good use as management continues to pursue accretive acquisitions.
    • Our price target of around $21.00 does not take into account future acquisitions that we think NVEE will complete that should be accretive to earnings.
  • Superior Uniform Group: An Old Dog That Has Learned New Tricks
       • Fri, Jan. 23 SGC Comment!

    Summary

    • Since 2003, Superior Uniform Group has made a focused and activity-based effort to evolve and position its business to achieve optimal performance.
    • SGC has acquired one of its closest competitors in an accretive acquisition of HPI in 2013, where it can share in positive industry dynamics for the segments it focuses on.
    • Successfully leveraging fixed costs and ongoing cost efficiencies have enabled the company to double its bottom line in recent quarters.
    • We believe SGC is undervalued compared to its industry peers.
    • We believe SGC deserves a forward premium PE of 20, which implies a target price of $50.00 on a pre-split basis.
  • ALJ Regional Holdings: Building A Solid Holding Company, One Acquisition At A Time
       • Nov. 21, 2014 ALJJ 29 Comments

    Summary

    • In short, we believe ALJ could be the beginning of a "baby Berkshire"; a holding company with a sharp eye for value and shareholder-friendly management.
    • ALJ bought, revamped, and turned around a Kentucky Electric Steel Mill for a $76 million profit. They sold it last year.
    • After paying off liabilities, ALJ returned a large portion of this profit to shareholders in the form of a 30 million "dutch auction" share buyback.
    • We believe ALJ will optimize and increase profitability at the two new companies they recently acquired.
    • We think ALJ could generate $175M in revenues and $25M in EBITDA and $0.50 fully diluted EPS in the next 12 months; we peg the company to be worth $7.50.
  • Baker Street Capital's Big Bet: The Next Catalyst To Drive USA Truck Shares Higher
       • Nov. 19, 2013 USAK 5 Comments
  • Global Telecom: Near-Term Catalysts Should Close Relative Valuation Gap
       • Sep. 26, 2013 GTT 17 Comments