Yesterday, The Bowser Report issued a daily mover alert on
DLH Holdings Corp. (DLHC), which gained more than eight percent for the day.
DLHC popped on news of an acquisition today. There was heavy
accumulation that pushed it up to a 52-week high on high relative volume. Here
are some details on the acquisition from the press release:
Highly Strategic Combination Creates Unique Provider of
Technology-Enabled Solutions to the Federal Government
Financially Transformative and Expected to be Immediately
Accretive to Earnings and Cash Flow
Pro Forma for the Acquisition, Calendar Year 2015 Revenue
and Adjusted EBITDA of Over $100 Million and $10 Million, Respectively, and
Total Backlog in Excess of $300 Million
Purchase Price of $38.75 Million: $36.25 Million Cash, $2.5
Million Restricted Stock
Although the stock didn’t gain 10% for the day, we still
felt the need to send this out to Bowser subscribers as it is still of
importance.
DLHC currently has a Bowser Rating of 10, which has not
changed recently. The company does not get a point for book value when it comes
to the Bowser Rating System, but it’s effort to expand is noteworthy and should
drive the stock price higher. Although this offsets it’s market to book ratio,
it still provides incentive for new investors. The stock is out of our ideal
sub-$3 buy zone, but has more upside now that it is hitting new 52-week highs
with accumulation. Resistance levels from a technical standpoint are currently
at $4.30 and $4.49 so keep a close eye out for it to hold above those price
points.
To learn more about The Bowser Report, visit
https://thebowserreport.com
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