Putting Subprime Suits to Work for You

Lawsuits over the subprime mess and other recent financial calamities will probably drag on for years, making it worth looking for companies that benefit from our love of litigation.

One, Navigant Consulting (symbol NCI), seems especially promising. As its name suggests, the Chicago company provides consulting services to businesses around the world. It specializes in helping companies that are suing or being sued.

According to a Navigant study, about 280 lawsuits related to the subprime mortgage crisis were filed in 2007. That's already half the number of suits filed over many years as a result of the savings and loan debacle of the early 1990s. A lot more subprime-related suits are likely.

A pickup in business and a string of acquisitions are boosting revenue. Navigant's top line has grown handsomely the past three years: $575 million in 2005, $681 million in 2006 and $767 million last year.

Until recently, the profit picture hadn't been as pretty. A couple of punk quarters last year pushed the stock down from $22 in 2007 to $11 in January. But the company turned things around in the first quarter. It earned $11.8 million, or 25 cents a share, up from 22 cents in the corresponding period of 2007 and beat analysts' estimates by a nickel a share. The stock rebounded sharply and closed Friday at $18.50.