GEO Investing

GeoInvesting has pegged NV5 Holdings (NVEE) to be 60% undervalued. We are always on the lookout, not only for good businesses to invest in but perhaps more importantly, businesses with proven management teams. This selection process led us to also find GeoBargain Costar Tech Inc (CSTI), an idea we alerted premium GeoInvesting members to on August 16, 2013 at $4.10. Shares of CSTI are up 265% since then.

In NV5 Holdings, we have found a management team that has rapidly built the company from a start-up in 2009 to a growing, highly profitable, and formidable firm that provides professional and technical engineering, as well as consulting solutions, to public and private sector clients in the infrastructure, energy, construction, real estate and environmental markets.

NVEE completed its IPO in March 2013, and the resulting performance of the company speaks for itself. The company initially offered 1.4 million units of common stock and warrants to investors for $6.00 per unit. The market cap at the time of the company’s IPO was around $25 million. The market cap has recently hovered around $75 million. Since the IPO, that is a rate of return that is approaching 200%, and we think the company is just getting started.

NVEE Price Target of $21.00

Our near-term price target of around $21.00 does not take into account future acquisitions that we think NVEE will complete that should be accretive to earnings . Shares are off about $2 from their recent high of $15.24, as investors have wrongly lumped the company into the pool of firms that will be negatively impacted by falling oil prices.

Please see the rest of our analysis here.

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