Tuesday, August 7, 2007

Dynamics Research Corporation

Dynamics Research Corporation is a NASDAQ listed security that has been trading in a range between $8.55 and $14.72 over the past year. With 9,457,930 shares outstanding, a recent price of $13.03 gives a total market capitalization of $118,980,759. While there are certainly larger companies, Dynamics Research Corporation has definitely earned its place in the pack. Last year, Dynamics Research Corporation created $0.39 in earnings for every share outstanding.

Dynamics Research Corporation is currently priced by the market at 33.10 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Dynamics Research Corporation could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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