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MERRY CHRISTMAS!
($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Dip dip dip dip dip dip dip dip
Mum mum mum mum mum mum
Get a job
Sha na na na - sha na na na na
Every morning about this time
She gets me out of my bed a-crying
Get a job
After breakfast every day
She throws the want ads right my way
And never fails to say
Get a job
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Dip dip dip dip dip dip dip dip
Mum mum mum mum mum mum
Get a job
Sha na na na - sha na na na na
And when I get the paper
I read it through and through
And my girl never fails to say
If there is any work for me
And when I go back to the house
I hear the woman's mouth
Preaching and a-crying
Tell me that I'm lying
About a job
That I never could find
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Dip dip dip dip dip dip dip dip
Mum mum mum mum mum mum
Get a job
Sha na na na - sha na na na na
Now in 1958 the Silhouettes may not have delivered this message with the subtlety that some of our unemployed may have liked, but the fact of the matter is, it’s not a bad thing at all to get a job. Some people need help. Others need encouragement. At the end of the day, the end justifies the means.
Yesterday I bought Robert Half International Inc. (RHI) at 59.01. I will sell it in 4 to 6 weeks at 68.25. Here’s why I like RHI:
Just like all of the $$$MR. MARKET$$$ winning picks, you have to like the chart and this is a thing of beauty:
This stock is up 40% on the year with a PE of only 28. It pays a 1.30% dividend.
Robert Half International Inc. provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. The company operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services. It offers temporary staffing in the accounting, tax, and finance areas; information technology contract consultants; and senior level project professionals in accounting and finance fields, such as chief financial officers, controllers, and senior financial analysts for financial systems conversions, expansion into new markets, business process reengineering, and post-merger financial consolidation. The company also places temporary and full-time office and administrative personnel ranging from word processors to office managers; full-time accounting, financial, tax, and banking personnel; and full-time employees in the areas, ranging from multiple platform systems integration to end-user support, including specialists in Web development, networking, application development, systems integration, database design, security and business continuity, and desktop support; and temporary and full-time employees in attorney, paralegal, legal administrative, and legal secretarial positions. In addition, it is involved in serving clients in the areas of advertising, marketing, and Web design; placing project consultants in various positions, including creative directors, graphics designers, Web content developers, Web designers, media buyers, and public relations specialists; and the provision of experts specializing in risk, advisory, and transactional services. The company markets its staffing services to clients, as well as to employment candidates. Robert Half International Inc. was founded in 1948 and is headquartered in Menlo Park, California.
As companies are having a hard time keeping up with the boom and bust cycles of our unpredictable economy they have stood with hands on hips wondering what to do about employee staffing. Everyone wants hard working loyal employees, but no one wants to pay these employees, and their benefits, when business gets soft. At the end of the day, companies are craving a variable work force. Say hello to Robert Half. These days when you work at a big company, you have no idea if you’re sitting next to an employee or a contractor hired through an agency such as Robert Half. Now with the jobless rate down to the lowest level since 2008, Robert Half's business is poised to grow even faster.
Robert Half specializes in placing professionals in accounting and finance, and in technology. The company generates the majority of its revenue from assignments for temporary workers. It has booked 18 consecutive quarters of double- or triple-digit-percentage earnings gains. That’s not from a Kelly girl getting you coffee either. RHI revenue per placed employee is ~2x over Kelly Services and ~3x over Manpower Group.
Since the economic recovery began in March 2010, almost 10% of the jobs created have been temporary jobs – that’s a lot. Earlier this month, the jobs number marked another all-time high in the temporary to permanent worker ratio.
The way it works is employees work directly for Robert Half and Robert Half assigns them to companies. Companies pay Robert Half for the employee’s wages. Robert Half keeps the vig, skims the top and passes the money back to the employee. The paying company is happy because they don’t have to pay for benefits or vacations or savings plans or nothing. They just pay for work. When they fire the Robert Half employee, they don’t have to pay severance. As our population has become more educated, these contract employees have become better and better skilled but the companies that use them can still fire them whenever they want, as long as they are temporary employees.
The current and future environment should favor RHI's business. In addition to growing demand for RHI's services, such as accounting and IT, from the growing middle-market client base, it also benefits from increasing regulation and other developments, such as sweeping changes in accounting standards, with its consulting business. You need the nimbleness of temporary staffing to keep up with these trends. Your 60 year old accountant who has been with you 35 years and doesn’t know how to use a computer can’t help you but you can’t fire him because he gets a ginormous severance package plus he’ll sue you for age discrimination.
Let’s hear some feedback from satisfied employees of recruiting agencies:
“I really dislike recruitment agencies. The so called "consultants" are usually rude, arrogant and salesey. They are only interested in getting you in to register with them, they then promise you the world and you don't hear from them again, unless they want to flog you some job they can't get anyone else to do and think you will go for it because you are desperate or don't have 5 years plus experience in the particular field you are interested in. They will hardly ever put you forward for permanent work because they make more money out of you if you are just temping via them. They lie to you about the jobs and what they involve, making rubbish jobs sound like they are more high profile than they really are and they even lie about the salary / hourly rate you will get, if they think it will get you to say "Yes, please send my CV to that company!". Their philosophy is: "Get them to agree to it and worry about the details later!"
Ummmm….never mind that ungrateful person. It’s all about the money anyway. If the cost of hiring, employing and terminating a permanent worker rises, some previously "permanent" jobs may be reconstituted as temporary (or part-time) with the "permanent" functions being passed on to current workers or accomplished in other manners such as utilizing technology. It would be negligent, at best, for hiring managers to not compare the cost of adding a full time employee with the firm's true need for that position, including the temporal aspect.
In 2015, large employers (100+ employees) will have to offer health insurance for their employees. Employers also have to kick in for their employees' health insurance premiums. The Affordable Care Act might be unaffordable to smaller companies. In 2016, employers with 50-99 workers will have to offer (and pay for) health insurance for their employees. Therefore, the rise in the number of temporary workers may increase in percent and in number going forward into 2015.
In the recently posted third quarter, RHI earnings climbed 31% to 63 cents a share, the fastest rate of quarterly earnings growth since the fourth quarter of 2012. Sales rose 14% to $1.22 billion, the firm's biggest quarterly sales gain since the first quarter of 2012. This trend isn’t an accident. It’s a trend that will continue through next year.
RHI has raised its dividend every year since beginning its dividend in 2004. RHI returned 40% of its free cash flow to investors by the way of dividends and 60% by the way of share repurchases. They are certainly a shareholder friendly company. As of end of Q3, RHI has about 5 million shares remaining in its repurchase program.
A positive cash flow is typically used for internal expansion, acquisitions, dividend payments, etc. A company that generates rather than consumes cash is in much better shape to fund such activities on their own, rather than needing to borrow funds to do so. RHI's free cash flow of $1.21 per share passes this test with flying colors.
RHI's profit margin has been consistent or even increasing over the past three years (Current year: 5.94%, Last year: 5.11%, Two years ago: 3.97%. It is a sign of good management and a healthy and competitive enterprise.
ANAL-ysts see full-year EPS climbing 22% to $2.24. They expect a 15% rise in 2015 and a 12% gain in 2016. More on this later, but you don’t have to be a genius to know that as more jobs are being created, RHI is going to make more money. Management guides for only one quarter at a time and has continued its recent history of delivering results in the upper range or exceeding its revenue and EPS guidance. For Q4, the revenue range is $1.175-$1.225 billion and EPS range is $0.57-$0.62. Management's guidance was given in October before the feds published their bullish jobs numbers so it is likely that RHI will blow away their guidance numbers.
You have ANAL-ysts who pick numbers out of their ass. You have management who will always sandbag their guidance. Then you have $$$MR. MARKET$$$ who tells it like it is. Really simple, RHI is going to bank $5.4 billion of revenue in 2015 which will punch out $2.60 per share next year. If you use the existing trailing PE of 27.8 and multiply it by $2.60, you get a share price of 27.8 x $2.60 = $72.28, which is past my selling price. Workers at their desks, money in the bank!
The CEO’s name is Harold Messmer, but his performance has been far from messy. Here’s what he had to say:
“We were genuinely pleased with the company’s performance in the third quarter. Labor markets are stronger now than they have been in several years, particularly in the United States and most notably in the professional segments in which we specialized. We also saw our growth rates accelerate in our non-U.S. operations as a result of higher demand for our staffing and consulting services. In September, the unemployment rate in the United States drop below 6% for the first time since 2008 and the jobless rate for college-degreed workers 25 years and older was less than half that rate. The temp penetration rate which represents the number of temporary workers as a percentage of total U.S. employment reached an all time high of 2.1%. Competition for our experienced talent is intense right now in many cities and in some occupations the demand is growing faster than the supply of skilled workers. We are very good at locating our defined talent for our clients and I believe this is reflected in the higher demand for our services that we are seeing.”
“We do believe the macro for our small business, middle-sized business client is improving and the demand is broad based. And further, if you look at accounting operations versus financial positions, we’re seeing strength in accounting operations, which is more volume driven on the part of our clients, as our clients have more transactions to process, they need more accounts payable, accounts receivable, payroll and it’s those positions that we’re seeing near term strengthen in which is further indicative of our clients are seeing increasing demand on their side.”
This little gem will pay for all of my Christmas presents. Merry Christmas to all!
$$$MR. MARKET$$$
www.mrmarketishuge.com
($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Dip dip dip dip dip dip dip dip
Mum mum mum mum mum mum
Get a job
Sha na na na - sha na na na na
Every morning about this time
She gets me out of my bed a-crying
Get a job
After breakfast every day
She throws the want ads right my way
And never fails to say
Get a job
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Dip dip dip dip dip dip dip dip
Mum mum mum mum mum mum
Get a job
Sha na na na - sha na na na na
And when I get the paper
I read it through and through
And my girl never fails to say
If there is any work for me
And when I go back to the house
I hear the woman's mouth
Preaching and a-crying
Tell me that I'm lying
About a job
That I never could find
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Sha na na na - sha na na na na
Dip dip dip dip dip dip dip dip
Mum mum mum mum mum mum
Get a job
Sha na na na - sha na na na na
Now in 1958 the Silhouettes may not have delivered this message with the subtlety that some of our unemployed may have liked, but the fact of the matter is, it’s not a bad thing at all to get a job. Some people need help. Others need encouragement. At the end of the day, the end justifies the means.
Yesterday I bought Robert Half International Inc. (RHI) at 59.01. I will sell it in 4 to 6 weeks at 68.25. Here’s why I like RHI:
Just like all of the $$$MR. MARKET$$$ winning picks, you have to like the chart and this is a thing of beauty:
This stock is up 40% on the year with a PE of only 28. It pays a 1.30% dividend.
Robert Half International Inc. provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. The company operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services. It offers temporary staffing in the accounting, tax, and finance areas; information technology contract consultants; and senior level project professionals in accounting and finance fields, such as chief financial officers, controllers, and senior financial analysts for financial systems conversions, expansion into new markets, business process reengineering, and post-merger financial consolidation. The company also places temporary and full-time office and administrative personnel ranging from word processors to office managers; full-time accounting, financial, tax, and banking personnel; and full-time employees in the areas, ranging from multiple platform systems integration to end-user support, including specialists in Web development, networking, application development, systems integration, database design, security and business continuity, and desktop support; and temporary and full-time employees in attorney, paralegal, legal administrative, and legal secretarial positions. In addition, it is involved in serving clients in the areas of advertising, marketing, and Web design; placing project consultants in various positions, including creative directors, graphics designers, Web content developers, Web designers, media buyers, and public relations specialists; and the provision of experts specializing in risk, advisory, and transactional services. The company markets its staffing services to clients, as well as to employment candidates. Robert Half International Inc. was founded in 1948 and is headquartered in Menlo Park, California.
As companies are having a hard time keeping up with the boom and bust cycles of our unpredictable economy they have stood with hands on hips wondering what to do about employee staffing. Everyone wants hard working loyal employees, but no one wants to pay these employees, and their benefits, when business gets soft. At the end of the day, companies are craving a variable work force. Say hello to Robert Half. These days when you work at a big company, you have no idea if you’re sitting next to an employee or a contractor hired through an agency such as Robert Half. Now with the jobless rate down to the lowest level since 2008, Robert Half's business is poised to grow even faster.
Robert Half specializes in placing professionals in accounting and finance, and in technology. The company generates the majority of its revenue from assignments for temporary workers. It has booked 18 consecutive quarters of double- or triple-digit-percentage earnings gains. That’s not from a Kelly girl getting you coffee either. RHI revenue per placed employee is ~2x over Kelly Services and ~3x over Manpower Group.
Since the economic recovery began in March 2010, almost 10% of the jobs created have been temporary jobs – that’s a lot. Earlier this month, the jobs number marked another all-time high in the temporary to permanent worker ratio.
The way it works is employees work directly for Robert Half and Robert Half assigns them to companies. Companies pay Robert Half for the employee’s wages. Robert Half keeps the vig, skims the top and passes the money back to the employee. The paying company is happy because they don’t have to pay for benefits or vacations or savings plans or nothing. They just pay for work. When they fire the Robert Half employee, they don’t have to pay severance. As our population has become more educated, these contract employees have become better and better skilled but the companies that use them can still fire them whenever they want, as long as they are temporary employees.
The current and future environment should favor RHI's business. In addition to growing demand for RHI's services, such as accounting and IT, from the growing middle-market client base, it also benefits from increasing regulation and other developments, such as sweeping changes in accounting standards, with its consulting business. You need the nimbleness of temporary staffing to keep up with these trends. Your 60 year old accountant who has been with you 35 years and doesn’t know how to use a computer can’t help you but you can’t fire him because he gets a ginormous severance package plus he’ll sue you for age discrimination.
Let’s hear some feedback from satisfied employees of recruiting agencies:
“I really dislike recruitment agencies. The so called "consultants" are usually rude, arrogant and salesey. They are only interested in getting you in to register with them, they then promise you the world and you don't hear from them again, unless they want to flog you some job they can't get anyone else to do and think you will go for it because you are desperate or don't have 5 years plus experience in the particular field you are interested in. They will hardly ever put you forward for permanent work because they make more money out of you if you are just temping via them. They lie to you about the jobs and what they involve, making rubbish jobs sound like they are more high profile than they really are and they even lie about the salary / hourly rate you will get, if they think it will get you to say "Yes, please send my CV to that company!". Their philosophy is: "Get them to agree to it and worry about the details later!"
Ummmm….never mind that ungrateful person. It’s all about the money anyway. If the cost of hiring, employing and terminating a permanent worker rises, some previously "permanent" jobs may be reconstituted as temporary (or part-time) with the "permanent" functions being passed on to current workers or accomplished in other manners such as utilizing technology. It would be negligent, at best, for hiring managers to not compare the cost of adding a full time employee with the firm's true need for that position, including the temporal aspect.
In 2015, large employers (100+ employees) will have to offer health insurance for their employees. Employers also have to kick in for their employees' health insurance premiums. The Affordable Care Act might be unaffordable to smaller companies. In 2016, employers with 50-99 workers will have to offer (and pay for) health insurance for their employees. Therefore, the rise in the number of temporary workers may increase in percent and in number going forward into 2015.
In the recently posted third quarter, RHI earnings climbed 31% to 63 cents a share, the fastest rate of quarterly earnings growth since the fourth quarter of 2012. Sales rose 14% to $1.22 billion, the firm's biggest quarterly sales gain since the first quarter of 2012. This trend isn’t an accident. It’s a trend that will continue through next year.
RHI has raised its dividend every year since beginning its dividend in 2004. RHI returned 40% of its free cash flow to investors by the way of dividends and 60% by the way of share repurchases. They are certainly a shareholder friendly company. As of end of Q3, RHI has about 5 million shares remaining in its repurchase program.
A positive cash flow is typically used for internal expansion, acquisitions, dividend payments, etc. A company that generates rather than consumes cash is in much better shape to fund such activities on their own, rather than needing to borrow funds to do so. RHI's free cash flow of $1.21 per share passes this test with flying colors.
RHI's profit margin has been consistent or even increasing over the past three years (Current year: 5.94%, Last year: 5.11%, Two years ago: 3.97%. It is a sign of good management and a healthy and competitive enterprise.
ANAL-ysts see full-year EPS climbing 22% to $2.24. They expect a 15% rise in 2015 and a 12% gain in 2016. More on this later, but you don’t have to be a genius to know that as more jobs are being created, RHI is going to make more money. Management guides for only one quarter at a time and has continued its recent history of delivering results in the upper range or exceeding its revenue and EPS guidance. For Q4, the revenue range is $1.175-$1.225 billion and EPS range is $0.57-$0.62. Management's guidance was given in October before the feds published their bullish jobs numbers so it is likely that RHI will blow away their guidance numbers.
You have ANAL-ysts who pick numbers out of their ass. You have management who will always sandbag their guidance. Then you have $$$MR. MARKET$$$ who tells it like it is. Really simple, RHI is going to bank $5.4 billion of revenue in 2015 which will punch out $2.60 per share next year. If you use the existing trailing PE of 27.8 and multiply it by $2.60, you get a share price of 27.8 x $2.60 = $72.28, which is past my selling price. Workers at their desks, money in the bank!
The CEO’s name is Harold Messmer, but his performance has been far from messy. Here’s what he had to say:
“We were genuinely pleased with the company’s performance in the third quarter. Labor markets are stronger now than they have been in several years, particularly in the United States and most notably in the professional segments in which we specialized. We also saw our growth rates accelerate in our non-U.S. operations as a result of higher demand for our staffing and consulting services. In September, the unemployment rate in the United States drop below 6% for the first time since 2008 and the jobless rate for college-degreed workers 25 years and older was less than half that rate. The temp penetration rate which represents the number of temporary workers as a percentage of total U.S. employment reached an all time high of 2.1%. Competition for our experienced talent is intense right now in many cities and in some occupations the demand is growing faster than the supply of skilled workers. We are very good at locating our defined talent for our clients and I believe this is reflected in the higher demand for our services that we are seeing.”
“We do believe the macro for our small business, middle-sized business client is improving and the demand is broad based. And further, if you look at accounting operations versus financial positions, we’re seeing strength in accounting operations, which is more volume driven on the part of our clients, as our clients have more transactions to process, they need more accounts payable, accounts receivable, payroll and it’s those positions that we’re seeing near term strengthen in which is further indicative of our clients are seeing increasing demand on their side.”
This little gem will pay for all of my Christmas presents. Merry Christmas to all!
$$$MR. MARKET$$$
www.mrmarketishuge.com
($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
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