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StarTek, Inc. Message Board

  • just_a_nutty_buddy just_a_nutty_buddy Aug 2, 2006 2:06 PM Flag

    Be Careful!

    "The majority of this decline was the result of costs attributable to greater than anticipated employee turnover in certain of our U.S. sites..."

    Read between the lines. Good quality call center help is hard to find in the USA at the pay StarTek is offering. Their clients will not tolerate shabby customer service. StarTek will continue to have to offer baseline pay increases or pack up and move their business abroad or lose client business. This company thrives on economically depressed domestic locations where they can pay low wages. As our economy continues to improve, these depressed areas will see high turnover until wages are raised - obviously effecting the bottom line in the future. Good call center help at $8.00 an hour don't pair up well in this day. If the minimum wage legislation being proposed ever makes law, it would mean disaster for StarTek.

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    • "The majority of this decline was the result of costs attributable to greater than anticipated employee turnover in certain of our U.S. sites..."

      The reason attrition is so high is due to the way they treat employees.

      I will not go into details for fear of retribution, but as a former manager, I could not deal with the stress or lack of conscience the company seems to have. Google startek and read StarTek - Capitalism Without Conscience, the last entry on page 2.


    • Call center attrition issues are temporary, and fixable. I wouldn't dwell too much on this point. During the CC, they said they expect to announce new clients in the not so far distant future. When they do, the market will respond. Keep in mind, stock investors look 9 months out when deciding to buy, or not. Any new signings will be marked to market.

    • Revenue growth is one thing add in continued call center attrition plus prospects for expanding service = flat results at the most.

      Prospects are just that until they announce a signing of a client to these new services. In addition even when (and if) they do announce a client for these offerings it will be a quarter after that before you see any financial results that include it.

    • The long term fundamental growth is happening now. Have you checked the revenue growth? How about the prospects for expanding services? They're doing that too. Add back the currency hit, and they hit their estimate. The negatives are all out, and are not likely to repeat.

    • To average down I would have to have faith in the long term fundamental growth and frankly I don't get that from them. With margins tightening from telco's on outsourcing and ongoing negotiations with Cingular (their biggest client) I expect that even if revenues increase the overall net income % will be in decline.

      The stock price will swing up again no doubt about all anyone needs to do is just wait and unload at the peak and not a valley.

    • The better route would be to average down, and take advantage of the low price. The call center spill over from the 1st and 2nd qtrs. will soon end. The other potentially good news will come in the form of new client signings for their latest offerings. I am guessing we'll hear more, shortly.

    • Well we all just internet idiots trying to make money on stocks and reading the message boards to see if we can get anymore insight. No offense intended but I am just waiting for the next upward swing in SRT to try and unload it.

    • Neither, I am just one more internet idiot that thinks he knows a thing, or two about stocks. Here, I think I've found a perch. I know there may be a few ruffled feathers from the old days, so I apologize if I step on anyone's claws.

    • Sounds like you are also talking about Walmart.

    • Sounds like mundane management issues to me. The idea that the U. S. call center business is going to crumble is nutso. Do I hear chicken little calling?

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