Friday, August 10, 2007

ICT Group Inc.

ICT Group Inc. is a NASDAQ listed security that has been trading in a range between $14.35 and $36.88 over the past year. With 15,765,430 shares outstanding, a recent price of $14.72 gives a total market capitalization of $245,467,740. While there are certainly larger companies, ICT Group Inc. has definitely earned its place in the pack. Last year, ICT Group Inc. created $0.53 in earnings for every share outstanding.

ICT Group Inc. is currently priced by the market at 27.80 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, ICT Group Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.