I'll start a position in CLHL today.
carlisleholdings.com
negatives:
Hodge-podge company
-Has banking interests in Belize. What's that all about?
Overly diversified for its capital structure?
-Staffing services is a tough/rough business to be in now.
Too much insider (chairman's) control?
Possible that larger companies (ABM) freeze out competitors by locking clients into long-term contracts. CLHL also at risk if they (CLHL) improperly structure fixed-price contracts.
Hurt by WTC collapse
A thinly-traded, two-buck stock no one's heard of or cares about?
positives:
With low stock price ($2-2.15 - perhaps an 8 year low), price/sales at .1 is low, and price/book at .3 is low.
Ltd/eq should be manageable at .2.
If company can one again earn .68/sh (it did this or
better in '96,'97,'99,'00), that'd be a too-low (imo) p/e of 3 if current stock price did not advance.
Some of CLHL's businesses are necessary even in a recession: facilities maintenance (janitorial services, building maintenance and repair) and manned security.
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In looking at this sector, the safer/bigger/better company seems to be ABM based on track record. (It's a nice dividend-grower too). I choose CLHL because a large capital gain (percentage-wise from about $2.10) seems very feasible.
finance.yahoo.com
Jmo,
and I've been wrong many, many times. |
