Ulrik, The general market has turned bearish.
The August selling by Grieve and Napolitano
is telling. To me it has been a signal that I
should also take money off the table. Many are
going to cash. Heska has been one of the few
bright spots for investors in 2015.
I still believe there are better times ahead for
the company. But the short term is questionable.
Carlson didn't buy shares at market. He exercised options
at a deep discount to the market price. Carlson bought
shares in the $2+ range , Weaver sold her shares at the
$6 plus range. Some vote of confidence by the 2 principals
that know more about the direction of this company than anyone
else. I'll ask both you and rb. How do you choose your trash
collector? On their uniforms, the sexiness of the truck, or
lowest price for service? All SRT has to sell is lowest price in
a commodity business. And they are still losing market share.
Goldstein said he would have to check to see why Teletec and
and Sykes have higher margins than SRT? I don't need to check.
I can tell you now it is because those companies have a
customer mix more diversified and less dependent on 1 or 2
rb, You and I have been supporters of SRT for
several years. However, this is not the first
time Startek blindsided investors. SRT did it
with a negative surprise in May 2013. That
proved to be a buying opportunity, but was
only a quarterly setback. Fact is if u listened
to the conference call. SRT's legacy base has
been telecom and its going away. This business
is a commodity business. Startek has" no moat"
and they only bought Accent (and weakened the
balance sheet with debt) to offset the bleeding.
These telecoms are baloney. Accents biggest
customer Sprint, is another telecom?
Startek is doing nothing but trade dollars.
I believe the CFO spoke loudly with the sale
of her shares in May. And yesterday she hedged
when Omar asked questions of when the company
might be able to show profitability? Mid 2016?
Startek has always been a higher risk than peers
because they can't defend their own turf.
The competitors are taking share of the legacy
business faster than they can diversify into new
verticals. Ask yourself what competitive advantage
SRT has over its bigger competitors? I said it before
in a previous thread. Price, quality, or service....pick any
two? SRT's problem is they are selling to lowest price to
keep their existing customer base at the exact same time
wage pressures are forcing them to compensate with
higher wages. If this is going to be a turnaround story
It should be with Carlson and Weaver having the door
hit them in the kiester on the way out.
Fair enough. Its good to hear your comments.
I kinda missed you, over the last year and didn't
hear ya on the last few conference calls.
I wasn't sure if you still had an interest?
We now have an ugly chart and have broken
through the May 2013 lows when Carlson last
blindsided the faithful. The fact is. We're long past
the market recession of 08-09. And all stocks are
at risk of a correction. SRT is going in the wrong
direction making new 200 day lows everyday.
SRT's business is economy sensitive. Even if it
seems like a bargain now. I see no reason to
front run it and try to pick a bottom.
Okay, If the Yahoo information is wrong. I stand corrected.
The insider roster seemed to be recording all of the option
exercises of Mr Carlson?
My point is. Lisa Weaver is voting with her pocketbook.
You , and Omar, have asked many tough questions of her
in conference calls. The rosy scenarios of the new software
platform finally starting to pay dividends, and the growth in
new medical vertical hasn't played out. When the Chief financial
officer sells shares, that is a red flag.
I could be wrong. I am taking the information from
Yahoo "insider holdings". Yahoo shows she sold
10,000 shares in May and now holds 0.
jreb, Good observations. Lisa Weaver has sure spoken about her
future in selling all of her shares in May. When the CFO cashes out
40% off the highs of January. One needs to figure her confidence
is lacking. I see the Accent purchase as trading dollars. SRT is
losing share in their legacy telecom customers and now is buying
business to keep revenues from falling off a cliff.
Ajdler Arnaud has had time to assess the damage. Carlson and
Weaver need to do their do and pony show somewhere else.
I'm not an ingrate, or angry with you Omar.
I know you put a lot of effort into your reports.
But, do I not have a right to my opinion?
I am a big boy and take responsibility for my own.
I go back with this company longer than anyone
else making comment. I have been in business
to business sales for 50 yrs and was a vendor for
"StarPak" in the late 80's-90's when Morgan founded the
company. Quite frankly I knew SRT was a floundering
business when I first started accumulating shares in
2011. I bought inspite of the rotten business model,
these trading dollar CSR companies have. It was my hope
they would hang a "for sale" sign out in Greeley.
In sales , to simplify , there are 3 choices for Mr Customer.
Price, Qualiity, or Service? Pick any one, or two. You never
get all three. SRT legacy business has been 60% telecom
and bleeding because the larger more diversified companies
like Sykes,Teletech are taking market share. Startek is
getting doubly squeezed because of wage pressure.
The only thing SRT can do to keep the poachers out of
the chicken coop is to lower contract prices to their existing
customer base. What competitive advantage does Carlson
have over the other commodity companies? Better quality
phone reps? Better service? This business will continue
to get dumbed down because it is an outsourcing business
in which Mr customer.... only cares about one thing.......
"Lowest Price."Carlson told shareholders a positive story
for 2015 and beyond. Shareholders do not need excuses.
Shareholders need accountability.
The fact is Omar. You were wrong! Inspite
of the effort. I have 2 local companies I have done my own
anals on over the last 5 years. HSKA and SRT. Unlike you
I am diversified. I am not unappreciative of your blog.
Opinions are like donut holes ,everyone DONUT has one.
Either one of you guys can call me anytime off the board.
I find it interesting that Omar who was so emphatically
positive every quarter for the last 4 years didn't bother to
post to his blog after the last quarter. Now he is saying we
will have to wait wait for him to re-evaluate?
Wrong is spelled wrong. Carlson projected growing revs
and profits into 2015 and that hasn't been the case.
This is a commodity business. In a market where the
tide raises all ships, Startek floundered. Now when the
market is overvalued and stretched SRT will sink faster than
the others because it depends on sub-contracted revenue.
ATT is only the canary in the coalmine. If Charlie Ergans
Dish network acquires T-Mobile he can squeeze the
peas off Carlson and company, and threaten to move the
business to TTEC or some other low bidder.
Omar. Tell me one competitive advantage SRT has?
doc, Is the elder statesman here and has to be given credit
for hanging in through the tough years when Bob Grieve
sucked the life out of this company. Now Grieve is cloistered
to a back closet. This is Wilson's company for better or worse.
I always figured Heska was undervalued on the basis of assets.
Now the company has growing revenue and an acquisition candidate.
Heska is a perfect score of Abaxis.
Hi Doc, I'm still here. I did do a little reallocating but
still have a substantial position. HSKA continues to
have good prospects for growth. I've believed along
the company will be acquired. This has been Wilsons
Modus Operandi, and has a much larger principal
share than Buffalo Bob ever did.
Conference calls with the userbic Woody Harrelson
voiced CEO Carlson are a yawn. This guys time is
over. As a long time outside salesman, I was forced
to provide my company with forecasts on next years
sales revenues. If I under produced. I was gone.
Carlson literally lied to shareholders going into 2015.
Its time to kick his can down the road. Goodbye Carlson.