The KEYW Holding Corporation (NASDAQ:KEYW) is a government services company that specializes in cybersecurity and intelligence gathering applications. Shares have increased dramatically since fourth quarter earnings. At that time, the incoming CEO announced his strategic initiatives to drive growth in the core services business, and to stem operating losses and/or sell KEYW’s money losing commercial cybersecurity software business. In the second quarter, management executed against this strategy by completing the divestiture of the commercial software business, and by significantly increasing its backlog of government services business. This has started to unlock what he have always believed is the hidden value in the company. The market has finally recognized this as well, and the stock now trades at a more reasonable sector valuation.
From Baron Discovery Fund's second quarter 2016 commentary.
