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Staffing consolidation?

Recs

2

April 03, 2008 – Comments (2) | RELATED TICKERS: MAN , BBSI , KELYA

I'm bullish on both Manpower (MAN) and Barrett (BBSI), long-term, and I own a small position in Barrett and can (and probably will) buy Manpower shares at a discount to the lower of either their Jan 2, 2008 opening price or their Dec 31, 2008 closing price. I think that a recession may actually help staffing companies, as the whole lay-off, unemployment, taking-whatever-you-can-get-so-you-can-feed-your-family thing is good for a temp agency, which gets paid to make stopgaps in a bad employment situation.

Also, I cursorily read that Manpower bought a couple of other staffing firms recently, one in the Netherlands, one in L.A. I know Barrett also likes to buy competitors, and both companies (if I remember correctly) are well-run, profitable cash flow machines. I would like to read other opinions, but I think these two companies are getting ready to have a spectacular year or two.

Disclosure: as I said, I own a small position in Barrett and can (and probably will) buy Manpower shares at a discount to the lower of either their Jan 2, 2008 opening price or their Dec 31, 2008 closing price.

2 Comments – Post Your Own

#1) On April 03, 2008 at 11:49 PM, mandrake66 (96.23) wrote:

I liked Barrett and bought a small position myself in one of my portfolios. When the CEO half-jokingly mused aloud about buying all the shares himself because they had been bid so low, I couldn't resist.

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#2) On April 04, 2008 at 12:12 AM, FleaBagger (29.42) wrote:

I liked the conference call in which he cussed out congress for passing SarbOx. That was what sold me on my second helping.

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