Nice value... HH (Hooper Holmes)

Search

New member
Joined
Oct 19, 2007
Messages
35,366
Tokens
I'm typically a risk free investor in mutual funds and pretty much oil & gas stocks. But have some risk money floating around and am taking a stab at some stocks. Here is a write up on HH. Just picked up 7k shares at .888.

Hooper Holmes (HH) is trading for about 72 cents. Hooper Holmes offers health exam and other medical services, which are often used by insurance and other companies. This "undiscovered" company has a rock solid balance sheet with no debt and about $20 million in cash, which works out to be about 28 cents per share. Hooper Holmes has about $165 million in revenue and yet the current enterprise value is only about $28 million. Heartland Advisors, Inc. (which is run by famed value investor Bill Nasgowitz) is reported as owning a very significant stake of about 13.8 million shares, which is equivalent to about 20% of the company. See this and other significant ownership stakes. These shares have been holding strong for the past several days and I believe they should be trading for at least $1.50 per share. I can't find any small cap stock as cheap as HH, with the cash on the balance sheet equaling almost half of the current share price and the enterprise value of HH being about 1/5th of annual revenues. I believe these shares are bound to head higher due to their extreme undervaluation, and this company could be a takeover target. Even if these shares doubled to about $1.50 per share, they would still be cheap when considering the revenues of roughly $165 million per year and the balance sheet with other small cap stocks. If management reports higher profits soon, or a takeover is announced, these shares could easily more than triple from current levels and trade over $2.50.
 

Member
Handicapper
Joined
Jan 16, 2010
Messages
17,864
Tokens
yeah man I like it too. Im in it small for a 1k shares myself. Go baby go! :)
 

Member
Handicapper
Joined
Jan 16, 2010
Messages
17,864
Tokens
Looking good so far. Up .16 cents for us since posting..GO Baby GO!!!
 

Forum statistics

Threads
1,106,787
Messages
13,439,000
Members
99,339
Latest member
billcunninghamhomeloans
The RX is the sports betting industry's leading information portal for bonuses, picks, and sportsbook reviews. Find the best deals offered by a sportsbook in your state and browse our free picks section.FacebookTwitterInstagramContact Usforum@therx.com