Opinions
Benj Gallander
DLH Holdings Corp. (D)
DLHC-Q
COMMENT
Feb 18, 2014
Stock price when the opinion was issued
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(A Top Pick Jan 17/12. Down 67.57%.) (Formerly TeamStaff). Staffing in healthcare. If their $153 million backlog gets them into the profit zone with good margins, the company could fly. Revenues of about $50 million, up 21% in 2012. Keep losing money but cut their losses by about $300,000 last quarter. Insiders own 29%. NASDAQ has given them until June to get the stock up over $1.
(A Top Pick June 25/12. Down 42.03%.) Has been a thorn in his side. Thought new management had a good plan and he still hopes they do. The major problem now is that it trades under $1 but revenues have been going up. Getting new contracts but he has been wrong about this for a number of years.
He has done reasonably well on this, but it has taken a lot of time. They are in staffing with a lot of their contracts in the US government. Stock has flat lined. They were losing money for a number of years, but are now making a very little money. If they can finally report better numbers, and they have quite a backlog of orders, the stock can move up very, very quickly. He can see this going to $3-$4. He is going to Hold his stocks.
He can see this possibly going over $5. Had losses for a number of years but are marginally profitable now. Revenues have been going up quite smartly. Management owns about 17%. They only have about 9 million shares and change outstanding. If they can manage to have a really good quarter or two, this could really spike. One negative is that they only have about $3.8 million in the bank and he would like to see more. Seems to be still fairly early in the turnaround.