Resources Connection, Inc. (NASDAQ:RECN)

CAPS Rating: 4 out of 5

The Company is a services firm that provides finance and accounting, risk management and internal audit, information management, human capital, supply chain management and legal services professionals to clients on a project basis.

Recs

2
Player Avatar spearnick (75.06) Submitted: 8/26/2006 2:05:18 AM : Outperform Start Price: $21.89 RECN Score: -53.08

Investors seem to think that this company is a one-trick pony - that it is only good at providing consulting services surrounding Sarbanes Oxley (SOX) compliance. Yet this company continues to grow its topline and is setting itself for significant international expansion. Short-term investors, looking at lower-than-expected net income numbers have oversold this company. Yet the lower bottom line is due to expenditures focused on both geographic and subject-matter expansion. As a result, this stock is oversold and is poised for an impressive run.

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