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StarTek, Inc. Message Board

  • didionrock didionrock Aug 3, 2006 11:48 PM Flag

    Buyers Beware!

    Jack and Z202,let's hope you're proven right. In the past few calls, CEO has taken the position that SRT provides no guidance, or even predictions. This time, he changes that position and twice promised news of an imminent signing. The last time the company did that and couldn't deliver it, the CEO left and they got hit with a shareholder lawsuit; so he must be pretty confident. Even so, this CEO said on the call that a big part of the drain on earnings from 2006 deals is that employee turnover was a problem in the new centers, not the older ones. He acknowledged it would take another medicore quarter before they begin to make a decent income on the new business that has already worn them down for 2 quarters running because of that turnover. Using that disclosure, unless their attrition improves dramatically, new signings that they can't keep staffed won't make a positive bottom line impact for the first two or three quarters after they roll out. Now you're into the middle of 2007. SRT needs to improve a lot more than just getting new deals. If you buy, buy smart and with your eyes wide open.

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