ALJ Regional Holdings, Inc. (ALJJ), a company that provides call center, back-office, staffing, and toll collection services to government and commercial clients, has declined 7.43% in aftermarket trading session. Consequently, ALJJ stock is trading at $1.62 at the time of the writing. The decline could be attributed to profit-taking factor after the stock rocketed 48.31% in Monday’s mid-day session and closed the day at $1.75. The acquisition of a public sector citizen experience platform is perceived to be the reason behind this surge in ALJJ stock.
Why ALJJ Surged?
On Wednesday, ALJJ announced the acquisition of certain citizen experience and smart city assets of Faneuil, Inc., a wholly-owned subsidiary of ALJ Regional Holdings. The transaction is expected to close during the first quarter of fiscal 2022. The closure is subject to customary closing conditions and consent which also includes the competition clearance by the Federal Trade Commission.
3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free.
Q3 2021 Operational Results
On Tuesday, ALJJ released the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th September. The company generated net revenue of $111.6 million against $97.8 million for the same period of 2020. The total operating expenses bore by the company during the three-month period stood at $108.3 million against $95 million for the same period of 2020. The net income generated by the company during the quarter was $1.06 million (or $0.03 per basic and diluted share) against $1.06 million (or $0.03 per basic and diluted share) for the same period of 2020.
Jess Ravich, Chief Executive Officer of ALJJ, while commenting on the results said that the results for the quarter were above the previous year results as Faneuil, a subsidiary of the company, continued to benefit from state unemployment-related contracts, the conclusion of certain unprofitable legacy contracts, and operational efficiencies. Meanwhile, Phoenix, another subsidiary, continued to provide strong overall results with volumes increasing for education components and books.
Future Outlook for ALJJ
A closer look at statistics reveals that the ALJJ stock has mostly seen success during the last few months. With the excellent business strategies in place and reliance upon business expansion strategies, the stock looks set to provide investors with handsome returns in near future.