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.
"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.
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