One has to wonder, after spending most of this decade trying to sort itself out, why BearingPoint can’t seem to find a way out of the fog. After too many restructurings, redirections and restarts to count, now we get this.
Morningstar is placing its fair value estimate for BearingPoint under review and may rule out a successful turnaround for the company.
The investment research firm cites the McLean-based company's weak financials, its low stock price and the recent resignation of BearingPoint's chief financial officer in placing the company under review. Finance chief Eileen Kamerick resigned earlier this month after less than a month on the job.
BearingPoint stock (NYSE: BE) was halted this week by the New York Stock Exchange after falling below $1.05 per share. It currently trades electronic exchanges, but will not resume trading on the New York Stock Exchange unless its share price rises above $1.10.
For all its problems, the company still generated $3.4 billion in revenue over the past 12 months. As of the close of business on Friday, the market valuation for BE was a lofty $185 million with a share price of $0.85.
Operating a consulting organization in the current environment is challenging but there are dozens of BearingPoint’s competitors that are not only surviving but, in many cases, thriving. I won't pretend to know all the problems that have plagued BearingPoint, but the things I have heard about suggest a complete inability to adapt to the exigencies of the evolving services marketplace.
While the company’s exposure to the Federal market might complicate things, BE could end up becoming a nice front-end for one of the India pure-play providers looking for a larger footprint in the Americas.
Stay tuned.
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