Background: In NV5 Holdings, we 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.
Why GEO Investing chose to delve into this story:
- NV5 Holdings fit our criteria for a GeoBargain; it was cheap and is led by a management team with significant pedigree and a proven track record.
- Dickerson Wright, NVEE’s founder has a history of entrepreneurial success that we believe will continue with the growth of NVEE.
- Management is targeting $300 million revenue and 12% to 15% EBITDA by 2016, a feat that we think they can achieve and is supported by industry dynamics.
- We believe that recent cash from a warrant redemption will be put to good use as management continues to pursue accretive acquisitions.
- Our 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.
Action Steps: Go long shares NVEE at $13.00 per share on February 18, 2015
Results: A $10,000 long investment in NV5 Holdings (NVEE) resulted in $$13,000 or a peak return of 130% on May 13, 2015.*