Heidrick & Struggles International, Inc. (NASDAQ:HSII)

CAPS Rating: No stars

The Company and its subsidiaries is engaged in providing executive search and leadership consulting services to clients on a retained basis.


Player Avatar saurabhprasad (94.69) Submitted: 1/24/2008 12:48:16 PM : Underperform Start Price: $21.68 HSII Score: +57.69

Basically same pitch as I have for KFY...

HSII belongs to an interesting segment of market because weighing scale of staffing stocks is the same as beauty contest.
If stock market is going down because of fears of recession, the same fear is pervading through board rooms and office cubes across the country.
As a boss, fear of recession makes me less likely to hire someone for my pet project.
Also, it makes me less likely to leave the company because they changed the coffee in kitchen.
Key thing to see here is there need not be a recession for this to happen, just the fear of it is enough.

And staffing stocks will take the brunt till the fear goes away, unless they get ridiculously cheap. P/E of 9 in this environment is not cheap; enticing but not cheap.

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