GEO Investing

GeoBargain Superior Uniform (NASDAQ:SGC) manufactures and sells a range of uniforms, image apparel, and accessories primarily in the United States. The company operates through two segments, Uniforms and Related Products, and Remote Staffing Solutions.

We love SGC. The industry dynamics are strong and the company has a solid history of successfully integrating acquisitions, while under promising and over delivering operationally. One only has to look at the long term price performance chart of uniform giant Cintas Corporation (NASDAQ:CTAS), which plays in a similar market space and is expected to see solid growth in 2015.

SGC is a much smaller company than CTAS, with greater growth potential and sells at a meaningfully lower 2015 P/E multiple based on the EPS we think SGC can achieve in 2015 (not taking into account future acquisitions).  EPS and sales have grown for eight consecutive quarters, year over year, a trend we think will continue through 2015.  We urge investors to read management’s commentary from the Q3 2014 conference call transcript. Management also just announced a 2 for 1 stock split, which we believe will help bring in some retail liquidity. We see immediate upside of 50% from current prices.