An operations and process improvement services company that develops and employees methodologies to transform the processes, procedures and people within its clients' organizations to enable more efficient and seamless operations.
The best Bull and Bear pitches based on recency and number of recommendations.
On 2-Feb, The company announced a voluntary investigation of stock option grants which seems to be the catalyst that sent the stock price down 20% during the week.These investigations typically don't have any large impact on the company's bottom… More
Read the most recent pitches from players about TGISQ.
Recs
So let me start this out by saying that I think the stock's current valuation is OK, so I'm not thrilled about adding this to my CAPS as an underperform. However, I do not think that this stock deserves a five-star rating at all and I was surprised to see the unanimity of opinion about this mediocre company.
So I'm throwing in with the bears. Let's review:
1) TGIS brings in over 90% of its revenue from government contracts (mostly federal) that have been shrinking for the last two years. Federal spending is already at an unsustainable level and it's likely dept.s (except Defense) will have to cut costs in the coming years.
2) Both net income and ROE have been trending downward (significantly) for at least the last three quarters. The stock has trended down with them appropriately and is probably fairly valued.
3) TGIS operates in a service sector with much larger competitors. The company's mission "using technology to streamline processes and improve efficiency"...hmm...I bet you could think of more than a handful of firms that do exactly the same thing. I can't find a competitive advantage that gives the company's "Resultants" (no joke, that's what they call them) an edge.
BIG THUMBS DOWN. I've done only cursory research on the company, and if someone can prove me wrong, PLEASE DO.
Recs
magic formula
Recs
Does consulting work to help companies improve efficiency and competitiveness. Seems to be doing the same in house, with operating margin increasing from 4.24% in 2003 to 12.06% in 2006. Trades at a reasonable 12 times FCF, has no debt and has grown revenues at about 40% for the past two years. High insider ownership, about 65% between Edward and Chain, both members of the board. Currently pays 3.9% dividend, has increased dividends every year and has plenty of room to increase dividend judging by FCF. P/E is 10, roughly half of competitors such as ACN.
Lower P/E may be due to risk of severe client concentration. About 90% of revenues come from US Navy. No indication from management that diversification is a top priority. However, Chain is a retired general, who has been/is a member of various corporate boards, including Burlington Northern, Northrop Grumman, and RJ Reynolds. One can only assume that he has various ties in the military/government that will help ensure that the business keeps rolling in, esp. when he has such a vested interest in the company.
No analysts cover this stock. Overall, I think the add'l risk from only having one client is mitigated by Chain. All other metrics point to this stock being undervalued. I think the stock is worth between $16 and $20 based on a dividend yield model and a discounted FCF model.
Find the members with the highest scoring picks in TGISQ.
ContraCAPS (< 20) Score: +399.22
The Score Leader is the player with the highest score across all their picks in TGISQ.
Top Pick |
Member Name |
Member Rating |
Start Date |
Call |
Time Frame |
Start Price |
Stock Gain |
Index Gain |
Score | Commentary |
---|---|---|---|---|---|---|---|---|---|---|
ContraCAPS | < 20 | 10/17/2006 | 3W | $10.54 | -99.95% | +299.27% | +399.22 | 0 Comment | ||
MRTShorts | 96.00 | 11/9/2007 | NS | $8.65 | -99.94% | +268.82% | +368.76 | 0 Comment | ||
chriscricket | < 20 | 4/20/2007 | 5Y | $12.19 | -99.96% | +265.80% | +365.76 | 1 Comment | ||
xodys | 98.78 | 6/4/2007 | 3M | $10.92 | -99.95% | +253.14% | +353.09 | 0 Comment | ||
darkgoody | 46.31 | 10/17/2007 | 5Y | $9.08 | -99.94% | +251.12% | +351.06 | 3 Comments | ||
abc123fool | < 20 | 10/11/2007 | 5Y | $10.27 | -99.95% | +242.40% | -342.35 | 0 Comment | ||
oneStinkyBum | 67.40 | 10/11/2007 | 1Y | $10.27 | -99.95% | +242.40% | -342.35 | 0 Comment | ||
OracleofNormal | < 20 | 10/11/2007 | 5Y | $10.27 | -99.95% | +242.40% | -342.35 | 0 Comment | ||
willphipps | < 20 | 10/11/2007 | 1Y | $10.17 | -99.95% | +243.41% | -343.36 | 0 Comment | ||
TheCreek | 74.83 | 10/12/2007 | 5Y | $9.89 | -99.95% | +245.00% | -344.95 | 0 Comment |
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