We first introduced you to Right Management Consultants (NYSE:RHT) back in December. Here was a stock that was not only recession-resistant, but recession-resilient, trading at less than 10 times earnings. A provider of outplacement counseling services, Right was thriving in grim layoff-ridden times, but was also laying the groundwork for an economic recovery with its growing organizational consulting services.
The market wasn't quick to catch on. When it was singled out in our Stocks For Mom feature in May, the stock was fetching just $12.70 a share -- essentially what it had back in December. Were we wrong on Right?
Not quite. Earlier this week the company announced that it had received buyout bids from two different parties. A management-led offer for $17 a share, plus another from an undisclosed third party.
Value vultures might note that the announced offer actually prices the company, again, at less than 10 times the $1.80 per share projected for its bottom line this year.
Is a bidding war afoot? Could be. The stock closed above $18 on the news -- a healthy 40% higher than when it was written up just four months ago.
But don't kick yourself if you missed the boat. The market is ripe with Rights. That's the beauty of mining the undiscovered treasures that lie in the small-cap and micro-cap worlds.
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