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Barrett Business Services Inc. Message Board

freelance707 3 posts  |  Last Activity: Jul 9, 2014 12:52 PM Member since: Mar 2, 2000
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  • Reply to

    Shelf registration

    by huntsferfun Jul 1, 2014 9:15 AM
    freelance707 freelance707 Jul 9, 2014 12:52 PM Flag

    It's a S-3 filing registered with the SEC.
    5,000,000 shares are offered for sale by owners of Wabash Foods LLC, which was acquired by SNAK back in 1999. Inventure itself will not get the money. Seems perfectly legitimate and reasonable to me.

    Having said that, this is a fairly big offering. It amounts to approx. 1/3 of SNAK's market cap.

    As to Huntsferfun's complaint that SNAK should have made a formal announcement ... He's right. It would have been "nice" for the co. to give stockholders a heads-up. This filing is not even listed in Inventure's own Investor Relations web page.

  • Reply to

    Stock Price

    by dennisrfm Jul 3, 2014 11:53 AM
    freelance707 freelance707 Jul 7, 2014 11:31 AM Flag

    California minimum wage increased from $8 to $9 an hour. This shows up as an increase in the revenue of PES firms like BBSI. Of course not everyone is earning minimum wage, but raising the minimum tends to raise overall earnings. And assuming its costs stay the same, the profitability of BBSI will jump. That's how the accounting math works out.

    The state mim. wage will increase another buck next year, so this is a multi-year "trend".

    Sentiment: Hold

  • freelance707 by freelance707 May 1, 2014 12:08 PM Flag

    BBSI misssed its own guidance on gross rev., which it put out on 2/4/14. Guide: $735 to $755, actual $727. Actual Net Earnings barely matched the low end of guidance. Guide ($0.45) to ($0.5) per share, actual ($0.50) [In BBSI's favor, 1Q net is distorted by payroll taxes. So a bigger loss indicates a bigger payroll - which is 'good'.]

    Now BBSI says it has clients who are not profitable, so will be dropped. And that this group is larger than it figured.

    It takes an English major to parse these statements. If you discover you had under-charged some clients, you raise your fees. Dropping them is the last resort when the clients won't pay the higher fee. This apparently is what is happening. We won't know how all this will affect the profitability for at least 2 or 3 quarters.

BBSI
52.44-0.13(-0.25%)4:00 PMEDT

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