sgc laundries_2The GeoTeam has uncovered yet another opportunity with Superior Uniform Group that we feel has been overlooked by the general investing public. We have a simple and concise thesis on our newest GeoBargain, Superior Uniform Group (SGC). We disclosed our long position to GeoInvesting Premium Members on October 30, 2014 at $24.13. We then coded SGC a GeoBargain on 12/31/14 at $29.51. In addition, we mentioned SGC as one of our top three ideas for 2015 in a recent interview with Seeking Alpha.

Why We Think Superior Uniform Group Is Undervalued

  • Since 2003, Superior Uniform Group (SGC) has made a focused and activity based effort to evolve and position its business to achieve optimal performance.
  • SGC has acquired one of its closest competitors in an accretive acquisition of HPI in 2013, where it can share in positive industry dynamics for the segments it focuses on.
  • Successfully leveraging fixed costs and ongoing cost efficiencies have enabled the company to double its bottom line in recent quarters.
  • We believe SGC is undervalued compared to its industry peers.
  • We believe SGC deserves a forward premium PE of 20, which implies a target price of $50.00 on a pre-split basis.

To see our full Bullish thesis, as well as to receive other great proprietary research that has received industry acclaim, please go here.