On Assignment, Inc. (NASDAQ:ASGN)
The Company is a professional staffing firm providing flexible and permanent staffing solutions in specialty skills including Laboratory/Scientific, Healthcare and Medical Financial and Health Information Services.
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Recs
The Life Sciences and IT/Engineering units have continued to show improvement in recent months, but the weakness in the healthcare-related businesses has outweighed that growth. Demand for traveling nurses and physicians will probably remain fairly low until economic outlook gets better. Hospitals have been tightening their budgets and because of this there are less new jobs. The IT/Engineering unit should continue to grow, mainly because capital spending in these areas have been rising lately. Thanks to more funding in the R&D with Life Sciences segment they are likely to continue to get better also. ASGN recently purchased the Cambridge Group, a provider of physicans, IT staffing, clinical/scientific business for $5.5 million. This should improve their market share and help accelerate their earnings.
Recs
Booked small red thumb gain and reset red thumb at a higher price.
Intangibles and goodwill of $220MM on balance sheet (in other words, big time fluff) - seems very, very high. Also still has $100MM in debt with declining revenues / margins. Revenues have fallen ~37% over the past 4 quarters... cost cutting has saved them so far but they will only be able to reduce fixed costs so much (unless they plan to go out of business). Long time before turn around happens here...
I am not sure why fools have this as a 5 star stock.
Recs
Okay this stock has been killed lately I’ve watched it for several months and well in the last two weeks it’s been beaten to death. But now, it’s releasing that it meets it’s analysts estimates which is actually quite amazing at a time like this! Good pick for me I’m going to go ahead and pat myself on the back when this doubles. Or maybe I’ll start patting now.
BANGALORE, Feb 17 (Reuters) - Staffing company On Assignment Inc is expected to post quarterly results matching analysts' estimates as it benefits from a diversified client base and a small exposure to financial markets
Recs
VALUE LINES - WORST PERFORMING STOCKS 13 WEEKS
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