CDI Corp. (CDI-N)

(A Top Pick April 3, 2017. Down 0.60%). They were in a technology sector. They were taken out last May. When he recommended it, it appeared that the stock would be taken out, it had a lot of debt. It had a nice uptick at the end but is now trading flat.

They are being taken over by a private equity group. He lost money. He bought when the US dollar was about par. The earnings recently weren’t very good. He doubts a higher bid will come in and is worried the deal will not go through. He hopes it will get taken over. They don’t pay a dividend any more. He estimates it will close in the third quarter.

IT consulting, staffing. They have been having trouble making money. They have no debt. They are looking at strategic alternatives. Normally a company like this can double in value. It could be sold for over $10-$12 within a year.

The new CEO has made a lot of changes. Have had a lot of write-downs, and because of that they have been losing money. Thinks the CEO is on the right track. They cut the dividend and eliminated about $10 million of money that was going out of the company. Selling at about half BV. If you take out goodwill, it is selling at far less then BV. He is happy to be holding onto this.

(Top Pick Nov3/11, Up 28.50%) Zero debt, beautiful company. Company should do better if economy continues to turn.