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How do you define greatness? Barry Bonds is the greatest home run hitter of all time. Who cares if he took steroids. Barry Bonds holds the Major League Baseball home run record with 762. He passed Hank Aaron, who is currently second with 755, on August 7, 2007. The only other player to have hit 700 or more is Babe Ruth with 714. Somewhere, someone is keeping track of the greatest stock picker of all time. Certainly due impressive consideration is the one and only $$$MR. MARKET$$$, who now has 82 consecutive profitable trades of 15% or better. That’s HUGE. You should bring him your finest meats and cheeses.
That’s right little ones. Today I sold NSP at 115.00. That’s a 15% gain over my purchase price of 99.82 in a little over 2 months. That’s an 85% annualized gain. Over the same 2 month period, the S&P 500 was only up 3%. How pathetic. Who does this besides someone who must be an incredible genius? Someone who has an uncanny quantitative model that beats the stock market again and again and again for year after year after year for almost 30 years? How ridiculous is that??? Well, $$$MR. MARKET$$$ did it again.
I am HUGE! Bring me your finest meats and cheeses because I am the greatest – the greatest – stock picker in the universe. How HUGE is $$$MR. MARKET$$$???
What this all means is that there will be another stock pick….the question is…would you like me to share it? If yes, please tell me. Tell me how much you like my picks and how HUGE $$$MR. MARKET$$$ really is….
I am HUGE!
$$$MR. MARKET$$$
================================================== ================================
06-19-2018, 10:24 PM
NSP ==> The G7 Winner!
($$$MR. MARKET$$$ 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.)
When I was an accounting manager, one of my employees came into my office and told me I had to do something. She told me that one of her colleagues who sat next to her smelled like a goat. Now I found this to be a somewhat awkward situation, so I told Human Resources (HR) to handle it. Needless to say, nothing about this ended well. Come to think of it, whenever someone has to go see HR, it usually doesn’t end well. So it makes me wonder…why do companies even need HR? Wouldn’t it be better if HR was like GrubHub…whenever you needed it you could order it instead of having them sit around all day and drink coffee and give each other raises and bonuses? In many organizations the role of HR is to keep the company out of court. The role of HR is to keep the company from getting sued -- by its own employees!
Reasons People Hate HR
• HR people seem to take the company's side in any interaction, never the employee's side.
• HR people seem to want to get employees in trouble for tiny infractions.
• HR people are not viewed as trustworthy, even though they say, "Tell me what's on your mind!"
• HR people stand idly by while incompetent and abusive supervisors get promoted and mistreat employees.
• HR people often "know HR" but don't know anything about the business they work for.
• HR people often spout policy instead of actively getting involved to remove roadblocks their employees face.
• HR people are seen as political and more concerned with their own place in the company's pecking order than with the welfare of the team.
Clearly corporate America needs to retool HR. As the job market gets tighter and tighter, employees will soon have the rule of the roost. In order to keep things from becoming a kangaroo court inside companies, the experts are going to have to come in and lay down the law.
Today I bought Insperity Inc. (NSP) at 99.82. I will sell it in 4 to 6 weeks at 114.98. Here’s why I love NSP:
Like almost every stock I buy, it all starts with the chart…and this chart is magnifico:
NSP stock is up 169% in the last 12 months. That’s growing at a rate of 14% per month. That’s a pretty good clip. This stock has a 4 billion dollar market cap. It’s no microcap garage stock. It’s growing because it’s business is Godzilla in the world of HR. Insperity provides a plethora of human resources and business solutions. The company expects earnings growth of 39.2% for the current year and ANAL-ysts keep pumping up their own earnings estimates.
Insperity, Inc. provides human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses in the United States. The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions, which encompasses a range of human resources functions comprising payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management and training, and development services. It also provides Insperity Premier, a cloud-based human capital management platform that provides professional employer organization HR outsourcing solutions to its clients and worksite employees; and Workforce Administration solution that offers human capital management and payroll services. In addition, the company offers other business performance solutions consisting of human capital management, payroll services, time and attendance, performance management, organizational planning, recruiting services, employment screening and expense management services, retirement services, and insurance services via desktop applications and cloud-based delivery models. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.
That’s right. It’s like a Keurig cup for HR. Pop open the cloud whenever you need HR assistance. Can you imaginge companies without an HR floor in their building? What a riot. In reality, Insperity’s motto is to help businesses succeed so that communities prosper. How can you beat that?
How does it work?
• The company outsources their entire HR function to a single strategic partner
• The company enters into agreement with Insperity to establish a relationship between themselves, their employees and Insperity
• Insperity absorbs HR responsibilities and risks, empowering customers to focus on operating and growing their core business
Here’s the part that Insperity doesn’t tell you. Once the company outsources their HR, they are basically enslaved by Insperity – who can charge them whatever they want from then on because once you bounce your HR, you can never really get them back. NSP becomes a money machine. Insperity is Focused on Being a Trusted Advisor to the Best Small-to-MidMarket Businesses. That’s right, they don’t waste their time talking to loser companies who won’t be able to pay their bills. The growth opportunities for this service are ENORMOUS. NSP has not even begun to absorb the potential business opportunities. Insperity Currently Provides Workforce Optimization Solutions for ~7,300 Clients. There are hundreds of thousands of companies waiting to ditch their expensive and inefficient HR operations. They do ALL of these functions:
Employee Benefits • Employer Payroll Taxes • Workers’ Compensation • Employer Liability Management • Performance Management • Direct Placement Recruiting • Employment Screening • Retirement Services • Time and Attendance • Expense Management • Organizational Planning • Insurance Services • Payroll Services • Financial Services • Human Capital Management
What this all means is that NSP is literally an earnings monster. They crushed it in their first quarter earnings report and will report 2nd quarter in August. So I think the stock price will creep up nicely in anticipation of even better numbers later this summer. But regarding last quarter:
Revenues up 15% on worksite employee growth of 12%
Gross profit up 25% on strong pricing and direct cost trends
Net income up 40% to $50.0 million
Adjusted EBITDA up 34% to $83.8 million
EPS up 39% to $1.18; adjusted EPS up 53% to $1.41
Revenues increased 15% over the first quarter of 2017 to $1.0 billion on a 12% increase in the average number of worksite employees paid per month. The continued double-digit worksite employee growth was the result of strong new client sales driven by an increase in the number of trained Business Performance Advisors, a continuing high level of client retention, and an improvement in the net hiring of worksite employees by our client base. Worksite employees paid from new sales increased 23% over the first quarter of 2017 on a 15% increase in the average number of trained Business Performance Advisors. Client attrition totaled only 8% during the heavy first quarter client renewal period, an improvement over the first quarter of 2017. Their fourth year in a row where attrition has come in substantially lower than the previous historical first quarter trend of 11% to 13%.
The first quarter 2018 effective income tax rate of 23% was impacted by the enactment of tax reform in late 2017 and the benefit associated with the vesting of long-term incentive plan shares during the quarter. During the quarter, they repurchased 131,000 shares of stock at a cost of $8.6 million and paid $8.4 million in cash dividends.
Insperity has the benefit of strong momentum, which will translate into continued growth acceleration over the balance of the year. Historically, the growth rate in worksite employees follows the growth rate in trained Business Performance Advisors within a year or so. They finished the first quarter with 500 total BPAs and recent sales activity levels and efficiency rates lead them to believe that revenues will continue to perform very well. Attrition rates are typically less than 1% per month from April through the year-end, we would expect growth acceleration over this period. Money…money…money!
Where are we going? The company is forecasting full year 2018 adjusted EPS of $3.36 to $3.44, a 37% to 40% increase over 2017. Let’s stop this fooling around. The company is easily to hit $3.85 for the year. If you take its existing PE of 41 and multiply it by $3.85 per share, you get a stock price of :
41 x $3.85 = $157.85 which is well past my target price.
When it comes to HR, it’s all about monkey see – monkey do. Once companies start to get the word that their HR functions are being outsourced to NSP, they are going to do it too. This one is as easy as a me walking into a bar and winning an arm wrestling contest. No problemo.
Here’s what the boss had to say:
"We are pleased to report these outstanding record results reflecting our dynamic business model and strong execution all across the company," said Paul J. Sarvadi, Insperity chairman and chief executive officer. "Our key drivers to growth and profitability are in place setting up a fourth consecutive year of impressive earnings growth for 2018. Our 5 major initiatives, which we expect to drive our desired results over this period, are growth acceleration, operational excellence, technology leadership, risk optimization and talent development. As you can tell from our first quarter results and our revised guidance, we are well underway on these stated priorities, especially growth acceleration, operational excellence and technology development. "
"Our double-digit worksite employee growth, combined with the effective management of pricing and direct cost programs, continued to produce adjusted EBITDA at record levels," said Douglas S. Sharp, senior vice president of finance, chief financial officer and treasurer. "This strong cash flow positions us to continue to invest in the growth of our business while also providing excellent shareholder returns."
Doug Sharp is not related to Pretty Boy Larry Sharp, but I will say to you “Watch this one!” $$$MR. MARKET$$$ is taking this one to the bank…spank it!
I am HUGE!
$$$MR. MARKET$$$
Last edited by mrmarket; 08-09-2018 at 10:19 PM.
That’s right little ones. Today I sold NSP at 115.00. That’s a 15% gain over my purchase price of 99.82 in a little over 2 months. That’s an 85% annualized gain. Over the same 2 month period, the S&P 500 was only up 3%. How pathetic. Who does this besides someone who must be an incredible genius? Someone who has an uncanny quantitative model that beats the stock market again and again and again for year after year after year for almost 30 years? How ridiculous is that??? Well, $$$MR. MARKET$$$ did it again.
I am HUGE! Bring me your finest meats and cheeses because I am the greatest – the greatest – stock picker in the universe. How HUGE is $$$MR. MARKET$$$???
- $$$MR. MARKET$$$ is the only person who can see John Cena.
- When $$$MR. MARKET$$$ was in middle school, his English teach assigned an essay: “What is courage?” $$$MR. MARKET$$$ received an A+ for turning in a blank page with only his name on the top.
- Macgyver can build a bomb out of paper clips, rubber bands and soda cans. $$$MR. MARKET$$$ can build a bomb out of Macgyver.
- $$$MR. MARKET$$$’s gmail account is: gmail@$$$MR.MARKET$$$.com
What this all means is that there will be another stock pick….the question is…would you like me to share it? If yes, please tell me. Tell me how much you like my picks and how HUGE $$$MR. MARKET$$$ really is….
I am HUGE!
$$$MR. MARKET$$$
================================================== ================================
06-19-2018, 10:24 PM
NSP ==> The G7 Winner!
($$$MR. MARKET$$$ 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.)
When I was an accounting manager, one of my employees came into my office and told me I had to do something. She told me that one of her colleagues who sat next to her smelled like a goat. Now I found this to be a somewhat awkward situation, so I told Human Resources (HR) to handle it. Needless to say, nothing about this ended well. Come to think of it, whenever someone has to go see HR, it usually doesn’t end well. So it makes me wonder…why do companies even need HR? Wouldn’t it be better if HR was like GrubHub…whenever you needed it you could order it instead of having them sit around all day and drink coffee and give each other raises and bonuses? In many organizations the role of HR is to keep the company out of court. The role of HR is to keep the company from getting sued -- by its own employees!
Reasons People Hate HR
• HR people seem to take the company's side in any interaction, never the employee's side.
• HR people seem to want to get employees in trouble for tiny infractions.
• HR people are not viewed as trustworthy, even though they say, "Tell me what's on your mind!"
• HR people stand idly by while incompetent and abusive supervisors get promoted and mistreat employees.
• HR people often "know HR" but don't know anything about the business they work for.
• HR people often spout policy instead of actively getting involved to remove roadblocks their employees face.
• HR people are seen as political and more concerned with their own place in the company's pecking order than with the welfare of the team.
Clearly corporate America needs to retool HR. As the job market gets tighter and tighter, employees will soon have the rule of the roost. In order to keep things from becoming a kangaroo court inside companies, the experts are going to have to come in and lay down the law.
Today I bought Insperity Inc. (NSP) at 99.82. I will sell it in 4 to 6 weeks at 114.98. Here’s why I love NSP:
Like almost every stock I buy, it all starts with the chart…and this chart is magnifico:
NSP stock is up 169% in the last 12 months. That’s growing at a rate of 14% per month. That’s a pretty good clip. This stock has a 4 billion dollar market cap. It’s no microcap garage stock. It’s growing because it’s business is Godzilla in the world of HR. Insperity provides a plethora of human resources and business solutions. The company expects earnings growth of 39.2% for the current year and ANAL-ysts keep pumping up their own earnings estimates.
Insperity, Inc. provides human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses in the United States. The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions, which encompasses a range of human resources functions comprising payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management and training, and development services. It also provides Insperity Premier, a cloud-based human capital management platform that provides professional employer organization HR outsourcing solutions to its clients and worksite employees; and Workforce Administration solution that offers human capital management and payroll services. In addition, the company offers other business performance solutions consisting of human capital management, payroll services, time and attendance, performance management, organizational planning, recruiting services, employment screening and expense management services, retirement services, and insurance services via desktop applications and cloud-based delivery models. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.
That’s right. It’s like a Keurig cup for HR. Pop open the cloud whenever you need HR assistance. Can you imaginge companies without an HR floor in their building? What a riot. In reality, Insperity’s motto is to help businesses succeed so that communities prosper. How can you beat that?
How does it work?
• The company outsources their entire HR function to a single strategic partner
• The company enters into agreement with Insperity to establish a relationship between themselves, their employees and Insperity
• Insperity absorbs HR responsibilities and risks, empowering customers to focus on operating and growing their core business
Here’s the part that Insperity doesn’t tell you. Once the company outsources their HR, they are basically enslaved by Insperity – who can charge them whatever they want from then on because once you bounce your HR, you can never really get them back. NSP becomes a money machine. Insperity is Focused on Being a Trusted Advisor to the Best Small-to-MidMarket Businesses. That’s right, they don’t waste their time talking to loser companies who won’t be able to pay their bills. The growth opportunities for this service are ENORMOUS. NSP has not even begun to absorb the potential business opportunities. Insperity Currently Provides Workforce Optimization Solutions for ~7,300 Clients. There are hundreds of thousands of companies waiting to ditch their expensive and inefficient HR operations. They do ALL of these functions:
Employee Benefits • Employer Payroll Taxes • Workers’ Compensation • Employer Liability Management • Performance Management • Direct Placement Recruiting • Employment Screening • Retirement Services • Time and Attendance • Expense Management • Organizational Planning • Insurance Services • Payroll Services • Financial Services • Human Capital Management
What this all means is that NSP is literally an earnings monster. They crushed it in their first quarter earnings report and will report 2nd quarter in August. So I think the stock price will creep up nicely in anticipation of even better numbers later this summer. But regarding last quarter:
Revenues up 15% on worksite employee growth of 12%
Gross profit up 25% on strong pricing and direct cost trends
Net income up 40% to $50.0 million
Adjusted EBITDA up 34% to $83.8 million
EPS up 39% to $1.18; adjusted EPS up 53% to $1.41
Revenues increased 15% over the first quarter of 2017 to $1.0 billion on a 12% increase in the average number of worksite employees paid per month. The continued double-digit worksite employee growth was the result of strong new client sales driven by an increase in the number of trained Business Performance Advisors, a continuing high level of client retention, and an improvement in the net hiring of worksite employees by our client base. Worksite employees paid from new sales increased 23% over the first quarter of 2017 on a 15% increase in the average number of trained Business Performance Advisors. Client attrition totaled only 8% during the heavy first quarter client renewal period, an improvement over the first quarter of 2017. Their fourth year in a row where attrition has come in substantially lower than the previous historical first quarter trend of 11% to 13%.
The first quarter 2018 effective income tax rate of 23% was impacted by the enactment of tax reform in late 2017 and the benefit associated with the vesting of long-term incentive plan shares during the quarter. During the quarter, they repurchased 131,000 shares of stock at a cost of $8.6 million and paid $8.4 million in cash dividends.
Insperity has the benefit of strong momentum, which will translate into continued growth acceleration over the balance of the year. Historically, the growth rate in worksite employees follows the growth rate in trained Business Performance Advisors within a year or so. They finished the first quarter with 500 total BPAs and recent sales activity levels and efficiency rates lead them to believe that revenues will continue to perform very well. Attrition rates are typically less than 1% per month from April through the year-end, we would expect growth acceleration over this period. Money…money…money!
Where are we going? The company is forecasting full year 2018 adjusted EPS of $3.36 to $3.44, a 37% to 40% increase over 2017. Let’s stop this fooling around. The company is easily to hit $3.85 for the year. If you take its existing PE of 41 and multiply it by $3.85 per share, you get a stock price of :
41 x $3.85 = $157.85 which is well past my target price.
When it comes to HR, it’s all about monkey see – monkey do. Once companies start to get the word that their HR functions are being outsourced to NSP, they are going to do it too. This one is as easy as a me walking into a bar and winning an arm wrestling contest. No problemo.
Here’s what the boss had to say:
"We are pleased to report these outstanding record results reflecting our dynamic business model and strong execution all across the company," said Paul J. Sarvadi, Insperity chairman and chief executive officer. "Our key drivers to growth and profitability are in place setting up a fourth consecutive year of impressive earnings growth for 2018. Our 5 major initiatives, which we expect to drive our desired results over this period, are growth acceleration, operational excellence, technology leadership, risk optimization and talent development. As you can tell from our first quarter results and our revised guidance, we are well underway on these stated priorities, especially growth acceleration, operational excellence and technology development. "
"Our double-digit worksite employee growth, combined with the effective management of pricing and direct cost programs, continued to produce adjusted EBITDA at record levels," said Douglas S. Sharp, senior vice president of finance, chief financial officer and treasurer. "This strong cash flow positions us to continue to invest in the growth of our business while also providing excellent shareholder returns."
Doug Sharp is not related to Pretty Boy Larry Sharp, but I will say to you “Watch this one!” $$$MR. MARKET$$$ is taking this one to the bank…spank it!
I am HUGE!
$$$MR. MARKET$$$
Last edited by mrmarket; 08-09-2018 at 10:19 PM.
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