Monday, November 20, 2006


Nice JOB

The week started off on the wrong foot as my portfolio sank 0.2 percent. I sold my remaining shares of TSYS. I still like the stock and I suspect it will go higher, but the stock has gained about 60 percent in the last two months despite the fact that earnings estimates for 2007 have been reduced, so I though it would be prudent to take my profit and put the money into other names that haven't appreciated as much.

JOB reported decent earnings after the close. Earnings increased a bit relative to last year although they were down sequentially (there may be some seasonality there). The 10 cent special dividend was a nice surprise. The stock probably won't do much of anything tomorrow but if the company can keep posting solid earnings, I think it's just a matter of time until we are above $2.

While I'm not excited about the decrease in revenue in what is now a tight labor market, the mix of revenue has improved. The higher margin placement services is representing more of the revs decreasing contract services. That is a good sign and should lead to higher margins in the next few quarters.

I would like to see an increase in overall revenues. With 4.4 national unemployment, the firm should be awash in new revenue. Especially given that they specialize in IT, accounting and engineering placement- professions that are in great demand.
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