Here's another way of looking at it. If they hit their EBIT...

Here's another way of looking at it.

If they hit their EBIT margin targets, them being:
- Consulting 12%
- Applications 12%
- IT Infrastructure 5.5%

...they will make EBIT of $54M - assuming last years revenue is repeated in each of the 3 segments - which is 12.3 cents a share.

If you assume a 7% increase in each segment's revenue that will be $58M or 13.2 cents a share.

Using multiples of 10 to 14 that's a price range of $1.23 to $1.84.

Consulting was the segment dragging the chain, but if you consider that Apps achieved 11% last year, and IT Infra did 4.8%, they must stand a chance of going close to these targets, especially given Consulting has the smallest amount of revenue at $90M.

A lot of IF's in there but they have always had plenty of revenue in the IT part of the business. Turning that into profits was the problem. They never made the returns SMX or Oakton (a few years back) were making, so he (Chris Niccoli) is looking in the right place. Plenty of revenue, but lousy margins historically.

He fixes that and we're in business.