Saturday, June 7, 2014

Cash in on More Hiring With These Staffing Stocks: HSON, RHI & STAF

The government's closely watched jobs report today is expected to show that nonfarm payrolls increased by 218,000 positions and may have finally returned employment to its pre-recession level, but executive search or staffing stocks like Hudson Global Inc (NASDAQ: HSON), Robert Half International Inc (NYSE: RHI) and up and coming Staffing 360 Solutions Inc (OTCBB: STAF) have already made investors winners since the official end of the recession:

Hudson Global Inc. A global talent solutions company with expertise in leadership and specialized recruitment, contracting solutions, recruitment process outsourcing, talent management and eDiscovery, small cap Hudson Global operates in 20 countries. Near the end of May, Lone Star Value Management, LLC issued an open letter to the shareholders, clients and employees to "thank our fellow shareholders for their overwhelming support for change at Hudson Global" when they elected Lone Star's two nominees to the board. The letter noted:

As disclosed on its recent earnings call, Hudson expects to spend $1 million in Q2 for its part in the proxy contest and for retaining Alix Partners.  Hudson could have spared this expense by welcoming shareholder input and actively seeking to reconstitute the Board via constructive engagement with Lone Star in our numerous attempts to reach a mutually agreeable resolution.  Now that Hudson's shareholders have spoken resoundingly in electing Lone Star Value's nominees by a large margin, we believe that the message to the entire Hudson Board is clear -- to immediately enact real and positive changes for the benefit of all stockholders, clients and employees.

Before the proxy contest, Lone Star issued a detailed letter to shareholders to highlight "prolonged underperformance, negative returns and poor corporate governance." Shareholders apparently agreed and want a shakeup as again, they overwhelmingly voted for change that's also given shares a lift - meaning the stock is worth watching. On Thursday, Hudson Global fell 0.51% to $3.94 (HSON has a 52 week trading range of $2.11 to $4.33 a share) for a market cap of $129.53 million plus the stock is flat since the start of the year, up 70.6% over the past year and up 75.9% over the past five years.

Robert Half International Inc. Founded in 1948, mid cap Robert Half International pioneered the concept of professional staffing services and today is the world's largest specialized staffing firm plus it's a recognized leader in professional consulting and staffing services. Robert Half International also has more than 340 staffing locations worldwide and offers online job search services on its divisional websites. Back in April, Robert Half International reported net income of $61.6 million on revenues of $1.08 billion verses net income of $55.9 million on revenues of $1.02 billion to produce the company's 16th consecutive quarter of double-digit net income and EPS growth on a year-over-year basis. The Chairman/CEO commented:

"We were pleased with the company's operating results for the first quarter. We saw strong demand in all areas of the business, especially in the latter part of the quarter.  Growth was strongest in our Protiviti, technology staffing and permanent placement divisions.  Non-U.S. operations also improved, particularly permanent placement services, which reported solid sequential and year-over-year revenue gains during the quarter."

Robert Half International has a trailing P/E of 24.28 and a forward P/E of 18.90 plus a forward dividend of $0.72 for a 1.6% dividend yield. On Thursday, Robert Half International rose 0.28% to $45.75 (RHI has a 52 week trading range of $30.64 to $46.13 a share) for a market cap of $6.29 billion plus the stock is up 8.93% since the start of the year, up 31.6% over the past year and up 100.2% over the past five years.

Staffing 360 Solutions Inc. Armed with a consolidation strategy that is well suited for the highly fragmented temporary staffing industry, small cap Staffing 360 Solutions intends to become a major international publicly-held staffing organization with diversified staffing services by engaging in a targeted accretive acquisition strategy. Staffing 360 Solutions has already developed a significant pipeline of acquisition targets in the IT, financial, accounting, healthcare and banking industries. Moreover, executive chairman Brendan Flood had spent seven years at Hudson Global in various roles in Europe and the United States - culminating with him leading the company's IPO and listing of its common stock on the Nasdaq National Market back in 2003. Staffing 360 Solutions has already issued the following forecast for the next three fiscal quarters: $24.1 million for the quarter ending May 31, 2014, $30.2 million for the quarter ending August 31, 2014, and $32.1 million for the quarter ending November 30, 2014. The company has also recently completed the acquisition of PeopleSERVE, which provides IT professional and management consultants on a contract and direct hire basis to state and local government, multinational and regional businesses and entrepreneurial firms throughout the greater Boston area. On Thursday, Staffing 360 Solutions fell 1.52% to $1.94 (STAF has a 52 week trading range of $0.55 to $2.19 a share) for a market cap of $59.44 million plus the stock is down 3% since the start of the year, up 17.6% over the past year and up 158.7% since February 2013.

Top 5 Sliver Companies To Own In Right Now

No comments:

Post a Comment