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Faneuil backlog way up at ALJJ

Just when I thought I was going to close this blog down, I am getting the urge to write again.

For the past few years, I have followed this company ALJ Regional Holdings (ALJJ). I owned it for a little while in 2014 and exited on an inappropriate rally with a 24% profit.

I will admit I am not the world’s smartest person when it comes to ALJJ. For smarter minds see Steven Kiel, Thomas Braziel, or anyone else whose name ends with -iel. It’s a bit more complex than my other investments due to a lot of debt and its holding company strategy (3 main subsidiaries).

Anyway, I have kept half-an-eye on it since selling, and was intrigued enough to buy back in after reading their latest earnings report. One sentence, regarding their largest business segment, Faneuil, caught my eye:

“Faneuil’s contract backlog, which represents multi-year contract deliverables, was $261.8 million and $48.1 million as of March 31, 2016 and 2015, respectively.”

And a little more color:

“During the remainder of fiscal 2016, Faneuil will begin to ramp up operations on several contracts, including a large multi-year contract with a utility provider which will contribute to additional revenues in the near term.”

More good news occurred recently:

  • Insiders purchased a significant amount of shares.
  • ALJJ uplisted to NASDAQ.

Those events are documented in a May 9 press release titled “ALJ Regional Holdings, Inc. Announces Approval For Listing On NASDAQ And Block Trade Purchase Of Shares.”

So… we’ll see. I feel pretty safe in the long-term given that I got my shares at $4.04 and the insider purchases were not far below at $3.89.

Nat Hunt

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