Thursday, January 15, 2009

Versar, Inc - VSR

Versar, Inc. (VSR) is a professional services company which specializes in project management and infrastructure services for government and private sector clients. A number of analysts see this company as being like a mini Halliburton, and with its wealth of government and military contracts I tend to agree. Versar, Inc. (VSR) has high insider ownership, good growth and practically no debt.

The one unresolved question is how will the company's fortunes change following the Presidential switch in the next week? If the Obama adminstration is favorable towards Versar (VSR) then this will prove to be a very profitable investment. Some may say that the stock price has increased substantially since the Election, suggesting the change at the White House is already priced in, but I believe this one has a long further to run. The one thing missing is a nice dividend payment!

Versar, Inc. (VSR) currently trades at a trailing P/E of 12.3 and a price of $3.85. I anticipate a 12-month price target of $9.

Disclosure: At the time of writing the author held shares in Versar, Inc. (VSR).

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