Hooper Holmes: Pruning Of Underperforming Businesses Uncovers A High-Growth Business Ready To Break Out
- Since 8/13, Hooper Holmes has sold 3 of its 4 businesses and reinvented itself into a lean and nimble company solely focused on the fast growing Health & Wellness sector.
- Health & Wellness posted a 38% QoQ increase in Q1’14 revenue and an adjusted 35% YoY increase in 2013, and without the underperforming businesses, a return to profitability is near.
- HH has received significant investments from 3 top-tier small cap activist investors, Cannell Capital, Osmium Partners and Meson Capital—Cannell steadily increased its investment from <1% in 2010 to 15%+ today.
- With the turnaround effort largely complete, and current bargain-basement prices based on trailing metrics, the stock trades at a steep discount relative to potential upside valuation.