Potential 100x return positive points :
- Good Value with Price below BV.
Book Value Per Share (mrq):7.627 - Low-price cost cutter :Spherion heads into 2007 with a continued emphasis on major cost-cutting initiatives, especially with regard to its payroll. CEO Roy Krause has consistently shown a preference to expand the company's margins and returns rather than sacrifice profitability to grow the top line at a faster pace -- a conservative approach that I'm always willing to applaud, as long as it benefits long-term shareholders.
Although Spherion definitely needs to start growing sales in a more inspired manner if it wants to increase shareholder returns over the long haul, Krause is delivering the goods with respect to the current cost-reducing objectives. In early November, Spherion reported a 61% increase in net income for the third quarter, despite minimal revenue growth. On top of that, the company bought back 118,000 of its shares, to complete a buyback authorization for 6 million shares at an average price of $8.76.
Spherion certainly exhibits some attractive investment characteristics that aren't generally found in many low-priced stocks. With a strong brand name, margin-improving business initiatives in full gear, and a positive long-term outlook for the industry, this single-digit stock seems quite deserving of its five-star rating.( From Fool.com)
