$CCNI - Command Center quick update
It's only been just over 3 months since I originally wrote about Command Center. You can check out the original write-up here.
Long story short, nothing has changed except I feel the thesis is slightly derisked after a decent Q2. Since mid-2016 the organization has been focused on right-sizing operations and the results are showing.
The company is growing mid single digits organically
The aqcuisition of Hancock has delivered as expected
Margins and revenue are expanding at the individual store level
It sounds like the bottom is in for North Dakota business activity
The company now trades at a market cap of 21.3 mil with 4.1 mil in net cash. They have bought back some stock and are looking at potential acquisitions. I estimate ttm FCF at just over 3 mil. Though the shares responded well to Q2 earnings, they are only back to where they traded in April of this year.
I believe that CCNI is a buy at this price.
Dean
Disclosure: the author is long CCNI at time of writing.