For those of you who believe you can't get any more negative on a stock than TIE, check this one out. There are SCREAMING buys to be had in the small cap market and General Employment Enterprises (Ticker symbol JOB) is one of them. This is a company with good earnings, sustained growth, NO DEBT and almost $3.00 per share in CASH. This stock is down more than 80% in the last 14 months and trades at less than 6 times trailing 12 month earnings. Excluding the $3 in cash, at the current price you are basically paying 2 times earnings for the business (which requires almost nothing in capital investment). The market has been down on staffing companies in general -- even the best like Robert Half (consistent 30% EPS growth & never missed an earnings estimate EVER) have been creamed this past year. The small cap players have been completely destroyed. This is the cheapest stock of this quality I think I've ever seen. TIE is a good company, but at the bottom of the cycle metals companies always look like they are going out of business due to huge fixed costs and capital spending requirements. Current stock price reflects that. Check out JOB. If you can find anything better, let me know.
I do not pretend to know why staffing companies are getting creamed. I do know and agree small caps in general are getting creamed. A suggestion (flat out guess) on staffing companies: maybe they will be a major casualty of the rise of use of the internet. Many people are waiting for the internet bubble to burst. Even more people are trumpeting the internet as the next successor to the industrial - then - computer revolutions. This I believe: it will be very interesting to study the CASUALTIES of the internet revolution, and there will be various and serious.
Things always look worst before they get a LOT better.
Copper stocks are up. Oil stocks are up. There is a lot of feeling that Asia is showing signs of making its inevitable comeback. Commodities always lead a recovery, and I think this is no esception.
You guys have been down so long you are starting to believe in down. I had TIE on my buy list, and watched it jump up today. I STILL bought it, because it is a steal. Normally, I don't buy any company showing a loss in any quarter in the last year. This one has so much cash in the till that I made an exception.
If Asia does start waking up, Asia will be ordering wide bodies by the dozen.
Just give TIE some time. In a year, or so, you will be lending money to your next door neighbor who is buying internet stocks now.