June 19, 2007

Take a HINT

From the Fool:

As regular Fool readers know, two common reasons for bargain opportunities are when a company is too small to be noticed, or when it's classified as an uncommon "special situation." Hill International, a $176 million company that underwent a reverse merger with Arpeggio SPAC, looks like one of those prime candidates for market mispricing.

Despite Hill's single-digit price tag and micro-cap status, it is the largest independent construction management firm in the U.S., raking in a total of $197.5 million in revenue for fiscal 2006. Over the last five years, Hill's top line has grown at a compounded rate of more than 20%, driven by major construction overseas -- particularly in the Middle East, where nearly 40% of Hill's business is generated.

The stock is up more than 30% since going public last June, but with a PEG of 0.85, Hill's shares still seem reasonably priced. Throw in the fact that founder and CEO Irv Richter owns more than 60% of the company, and you've got a stock to keep your eye on. CAPS All-Star phonixed runs down Hill for us:

Hill International seems to be a great stock. 70 worldwide offices, major contracts with foreign governments, a contract with the U.S. government to reconstruct parts of Iraq on an indefinite time/supply basis, and a number of other indicators from the news reel: all of these factors added up equal a great future for the company.

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