Mastech Digital Inc (MHH)

[gilead23]

Guidance may be conservative here

The revenue number they are throwing out would be on the low side. Keep in mind that will be a fully taxed number next Q as well. Given the low share count any revenue suprise to the upside should nicely magnify EPS. Figure every additional 300 - 350k or so in revenues should translate to about a penny in EPS assuming stable SGA and margins.

The company is basically trading at its cash break up value right now and valuing the business at 0. At 1.10 it was the most ridiculous bargain I have seen this year. Even at current prices I think you could see a good amount of appreciation. $4 to $6 seems like a possibility. You are not going to see that $15 without consistent growth and .20+ EPS quarters and a better market.

If you look at the low volume that knocked this down post spinoff though I do think a $5 price is a possibility especially if it gets a small amount of momentum behind it.