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Kelly Services, Inc. (KELYB)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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25.24+0.06 (+0.25%)
At close: 4:00PM EDT
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  • S
    Shorty McShortBear
    My next Pure Earnings Short Sell play, after I Cover WWW later today, is going to be KELYA. This is a thinly traded stock, but I have already contacted my broker and they say they do have plenty of shares available for me to Short. KELYA is an interesting choice at this moment in time, but I think she is poised to collapse upon delivering this earnings report, which should be weak and disappointing. A brief analysis:

    KELYA is hugely over-valued. Very close to her 52 week high. Company was not profitable their past fiscal year, unacceptable for a temp agency/manpower services company. Analysts do not see much upside at all to the current stock price, going out 12 months. Overall financials are poor. In particular, EPS Growth Rate is anemic.

    Now, this is a temp worker agency company, specializing in office workers, heavily concentrated in the USA but with international exposure as well. Many people seem to think that because of the current "labor shortage", companies in this sector will start to rake in huge revenue increases.

    I disagree. Fact is, the demand for office workers has decreased due to more work from home opportunities and shifts in company culture. Fact is, companies that are hiring right now are MORE eager and willing to hire direct, than to use a temp agency. Fact is, temp agencies face business pressure from both sides: A decrease in corporate clientele, plus a decrease in qualified workers seeking employment from them, because it is much easier now for job seekers to get hired directly by a company, instead of going through a "middleman" temp agency, which often results ion lower pay and no benefits for them.

    I see KELYA as facing lots of business pressures, in this quarter and future quarters, and as a result tomorrow morning's earnings release should be weak and disappointing, resulting in an immediate and significant stock price decline.

    Good Luck!
    Bearish
  • S
    Shorty McShortBear
    Still Short all my shares of KELYA. I had decent profit on her earlier today, but decided not to take it, primarily because I could not find a top-quality Pure Earnings Short Sell play for the Thursday AH/Friday PM time frame. I decided to just hold my KELYA Short for one more day.

    Meanwhile, I discovered a very intriguing potential Pure Earnings Short Sell play for Monday pre-market. The stock is RIDE, and I spent much of the day doing a Deep Dive Due Diligence investigation of RIDE. My research today indicates RIDE (Lordstown Motors) to be a company in deep trouble on many levels. To get an understanding, search "Hindenburg Research RIDE" and read the article.

    RIDE is massively overvalued despite being close to a 52 week low price. It is facing numerous class action lawsuits. There is very strong indication that the owners and directors of this company have attempted to inflate share price by lying. This is a new company, founded in 2019. It appears to be trying to develop a single product, that it is relentlessly hyping, in an effort to inflate share price.

    I checked with my broker and as of today they had plenty of Short shares available with no special restrictions or above 100% equity requirements. If this remains the case tomorrow, I do intend to close out my KELYA Short Sell and throw all my hard cash into a RIDE Short Sell. It is hard for me to envision RIDE going up on Monday in response to her earnings release, given the facts that they have no existing product, no revenue, and just in recent weeks and months, the legitimacy and credibility of the company itself has been directly challenged.

    Good Luck Folks!
    Bearish
  • S
    Shorty McShortBear
    I Sold Short a LOT of shares of KELYA at an average price of $25.08, about an hour ago. This is a Pure Earnings Short Sell play. KELYA reports quarterly earnings tomorrow morning before market open, and I am expecting weak and disappointing numbers that should result in a stock price collapse tomorrow. Why did I choose KELYA over the 150+ other available Pure Earnings Short Sell available plays for this date? Here is a brief analysis:

    KELYA is hugely over-valued. Very close to her 52 week high. Company was not profitable their past fiscal year, unacceptable for a temp agency/manpower services company. Analysts do not see much upside at all to the current stock price, going out 12 months. Overall financials are poor. In particular, EPS Growth Rate is anemic.

    Now, this is a temp worker agency company, specializing in office workers, heavily concentrated in the USA but with international exposure as well. Many people seem to think that because of the current "labor shortage", companies in this sector will start to rake in huge revenue increases.

    I disagree. Fact is, the demand for office workers has decreased due to more work from home opportunities and shifts in company culture. Fact is, companies that are hiring right now are MORE eager and willing to hire direct, than to use a temp agency. Fact is, temp agencies face business pressure from both sides: A decrease in corporate clientele, plus a decrease in qualified workers seeking employment from them, because it is much easier now for job seekers to get hired directly by a company, instead of going through a "middleman" temp agency, which often results ion lower pay and no benefits for them.

    I see KELYA as facing lots of business pressures, in this quarter and future quarters, and as a result tomorrow morning's earnings release should be weak and disappointing, resulting in an immediate and significant stock price decline.

    Good Luck!
    Bearish
  • D
    Dave
    Good news for KELYA and MAN.
    https://finance.yahoo.com/news/almost-half-of-states-will-cancel-pandemic-unemployment-programs-151455713.html

    Florida is the latest GOP-led state to opt out of federal unemployment programs early, increasing the total number of states to 23.
  • R
    Ronald
    Will they resume trading anytime soon lol
  • A
    Austin
    LEGENDARY reaction history. SSS Rank
  • A
    Anonymous
    short squeeze coming here? what % of float is short? probably a huge amount considering
  • A
    Asmir
    Wow
  • T
    Tom
    Still think this is a vastly undiscovered gem for the future environment. They are a conservative company, which I can tell by them suspending the dividend, having low debt and cash on hand for an emergency.
    I just don't see a lot of companies bringing back full time employees after this is over for the next couple of years. Kelly should benefit greatly from that paradigm shift.
  • B
    Belinda
    Over 91% of their stock are all held by insiders. lol. Someone is pumping it today.
  • Y
    Yahoo Finance Insights
    KELYB is up 12.99% to 34.45
  • D
    Donald
    That the stock would be down 5% today would make sense. 20%? That's more like that would have reported a loss, which is far from reality.
  • Y
    Yahoo Finance Insights
    Kelly Services is down 5.92% to 23.54
  • J
    Jack
    Don’t buy
    Bearish
  • J
    Jonathan
    Why steady slow gains with KELYA and KELYB jumping all over the place? Thoughts
    Bullish
  • T
    Tom
    This seems like a grand slam stock to me. It is cheap, they have very little debt. They have cash on hand. Most importantly, I think their product will be greatly in demand. As heartless as it sounds, I think many employers will choose temp over full time employees to run a lean enterprise in case this happens again.
  • L
    LamboMoon
    just lol
    Neutral
  • A
    Aivan
    What is this?
  • J
    Jonathan
    Zack has #2 rank buy on KELYA. This is going to double like B imo
    Bullish
  • J
    Jonathan
    KELYB gains about to swing into KELYA imo Any thoughts?