GEE Group Inc (JOB)

[littlefish]

Still stable for now on the health front with the family member but lots of side effect issues, etc…

Bill rates in IT are up around mid single digits YOY, but other professional sectors are also seeing increases so that is a net positive as long as customers will stomach the increases. Thankfully, with all the inflation talk, many of the reporting professional staffing firms have noted customers have found it is a necessary cost to stomach if they want the talent. Remote working can alleviate some, but many companies still want employees close geographically in many cases. JOB does have a few virtual offices.

Jacksonville right now actually has the highest sequential IT job posting increase of anywhere in the country from calendar Q2 to Q3 although I think JOB is going to be a developing story with a few more Qs (kind of like HRTH a year ago when things weren’t obvious to the superficial glances). Jacksonville is HQ but they have several areas of presence geographically- mostly east and south with Fla and Texas being two and Ohio being a third.

I’m encouraged the CEO is talking more about organic positioning first before acquisitions. Seems like investors on every call keep bugging them about acquisitions when they nearly went BK from that. they need to grow their own engine first and now that they have enough of a base to feed them I think they will.

The high risk acquisitions of the past were because they were just too small to be able to do much (attract good talent, gain major customers, hire and keep better recruiters, etc). Now that they cleaned all that up, it is the first chance Derek really has since joining in 2015 to push the company forward on a longer term profitable scale.

All IMO only.