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.
