Exponent, Inc. recently announced that its Board of Directors has authorized up to an additional $35,000,000 for the repurchase of Exponent's common stock in the open market or privately negotiated transactions in compliance with Securities and Exchange Commissions Rule 10b-18.

"This action reflects our confidence in the future cash flow of the Company, as well as our ongoing commitment to build long-term shareholder value," commented Michael Gaulke, Chairman and CEO.

The stock trades for 11x cash flow.

GOOD LONG TERM STOCK

Exponent (EXPO) is a real problem solver. It's a scientific and environmental consulting firm with clients in the automotive, energy, health-care, and government fields. Its stock, reflecting the small outfit's success, has bolted from 14 in August to 19.52 on Mar. 26. "It's an unusual company with a franchise in litigation support, which is an attractive growth industry," says David Sowerby, portfolio manager at Loomis Sayles, which owns shares. Exponent is involved in high-profile cases, such as litigation over the "Big Dig" in Boston and Hurricane Katrina in New Orleans. Some 65% of revenue comes from litigation support and 25% from design and regulatory work in science and the environment. The rest is from Defense Dept. projects. Sowerby notes revenues grew every year since 1993 and earnings since 1998. Both should speed up again, he says, as Exponent gains new projects. David Gold of investment firm Sidoti rates the stock a buy, with a 12-month target of 26. He sees profits of 93 cents in 2007 and $1.06 in 2008, up from 83 cents in 2006.

Upgraded by Matrix Research from Sell to Hold