This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Crescendo Win Resounds for Computer Horizons

What's Next?

The next critical event comes on Sept. 22, when shareholders vote on whether to keep the company's board intact or to remove the board and replace it with a slate proposed by Crescendo.

If the Crescendo slate wins, expect the company (assuming Crescendo then takes control of the company) to hire an investment bank and either look to get bought at a much higher price or take on debt and repurchase shares. Also, Crescendo has noted that the company frequently missed guidance on revenue. I expect that there might be a one-time readjustment of revenue, and then I would look for the company to start surpassing guidance.

Meanwhile, as TSC reporter Emma Trincal, has pointed out , Rosenfeld is now involved in an activist battle surrounding IT services firm GEAC Computer (GEAC).

This is a slightly harder story. As opposed to Computer Horizons, which consistently missed guidance and was pursuing a strategy that arguably ran blatantly against strategic guidance, GEAC shares have had a nice, steady climb over the past year, income has grown each year: to $74 million in 2004 from $37 million in 2002.

However, with a market cap of $860 million, net cash (with only $5 million debt) of $184 million, and cash flow from operations of $79 million in the past 12 months, a strong case can be made that with nice growth and a great balance sheet, this represents a significantly undervalued situation. The key is what to do with the cash.

The company is going to be tempted to make acquisitions, and as Emma pointed out, Rosenfeld opposed the company's recent acquisition of Extensity. I'd expect Rosenfeld to call for an increase in share buybacks. Flush from his success with Computer Horizons, where his shares just posted a significant gain from his purchase price 20% lower, my guess is that Rosenfeld is going to be itching for an increase in the battle over GEAC.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Computer Horizons and Analysts International to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

P.S. from Editor-in-Chief, Dave Morrow:
It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our free trial offer to RealMoney premium Web site, where you'll get in-depth commentary and money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice -- try it now.
James Altucher is a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of Trade Like a Hedge Fund and Trade Like Warren Buffett . At the time of publication, neither Altucher nor his fund had a position in any of the securities mentioned in this column, although positions may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback; click here to send him an email. has a revenue-sharing relationship with under which it receives a portion of the revenue from Amazon purchases by customers directed there from
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs