Staffmark made one great move, they fired Jerry Poston. Jerry to say the least is a jerk. Staffmark is a young company that made several mistakes. They need to take into consideration the time it takes to bring the new companies that they have acquired under the StaffMark umbrella. You can't expect a 20% growth rate until the confusion and uncertainty and dead weight have been addressed. They need to get rid of former owners of smaller companies in a one year time span and acquire larger companies. There is too much loyalty with smaller companies with the former owners. Businesses need to be run internally by StaffMark management. They need to start the changes immediately, focus on organic growth, cut overhead, meet all the existing clients and let them know of changes at once, set internal growth for the first year at 10-12%, and move all upper management to Arkansas. With that said, Clete is doing a wonderful job. His age has nothing to do with his performance. Clete's only problem has been to put too much trust in Jerry Poston. I can assure you he has learned his lesson. StaffMark will be back in favor and will be a power house. I have first hand experience. My company was acquired by STAF. I have seen my investment down by millions, but I have also been buying aggressively. Most of these changes I have listed have taken place and in the end I'll be back on top. Cliff, some of us have lost more than lunch money. Analysts have to downgrade. My advise is to do your own homework and listen to people like Scott and let's give Clete and unsung heros like Don Marr the support they deserve.
My company was also acquired by staf and I have also lost millions . I agree with what you are saying and I firmly believe the management team that is now in place can turn things around , they have learnt a hard lesson and will come back stronger and better. I also have been buying aggressively.
The dynamics of a selling market are very similar to the dynamics of a buying market. The selling pressure this stock is getting has gotten little resistance from the demand side which is waiting to see how low it will go, creating the large drop in price. It will end when the Company puts out solid earnings numbers and gives the brokerages following this Company a reason to believe that it is the P/E that is ludicrously low and not the future earnings projections that are too high. It will take some time (some benefit from Q1 if it is what they expect and alot more after Q2 if it is on target) for this upward movement to occur.
At that point, and on into the future if they meet their earnings bogies (even as restated), the buying market dynamics hopefully will create an upward price movement. If they make their $1.65 or whatever for 1999, those of us that are buying at $6 (even if it is to average down from $17) should be happy with the result.
Love the post from anorak. Can anyone post a complete listing of who is covering Staf (good and bad) and the numbers where we can order the analysts writeups?