Replies to post #96314 on Savvy Trades and Investments

[hweb2]

I've been a buyer of TSRI as well. Totally agree...next earnings report in a couple weeks should be another favorable comp, but it's their seasonally weakest quarter. Staffing companies all seem to have reduced revenues at the beginning of the calendar year.

TSRI has such a tiny share count, I'm hoping they can still post a decent bottom line. Stock is way off its January highs when it shot up to $14-$15. Seems like only a matter of time before this low floater catches fire again. Things are heading in the right direction at least, according to the CEO in the last earnings PR-

Thomas Salerno, our CEO, stated "The demand for staffing services remained robust in the quarter. Our revenue increased 48.5% for the second quarter due to organic growth from new and existing customers. Operating income for the current quarter was $415,000 as compared to an operating loss of $223,000 in the prior year quarter. If our current trends continue, we expect operating income to continue to grow as we leverage selling, general and administrative expenses."

[hweb2]

TSRI doing well ahead of earnings due in the next few days. I'm taking some profits in the low $10's. Stock up 15% in the past week, the broader markets are getting ugly, and I don't think traders are aware that the upcoming fiscal Q3 report is their seasonally weakest quarter. From the 10K-

The Company’s operating results also fluctuate due to seasonality. Typically, our billable hours, which directly affect our revenue and profitability, decrease in our third fiscal quarter. Clients closing during the holiday season and for winter weather normally causes the number of billable workdays for consultants on billing with customers to decrease. Additionally, at the beginning of the calendar year, which also falls within our third fiscal quarter, payroll taxes are at their highest. This typically results in our lowest gross margins of the year. The Company’s operating results are also subject to fluctuation as a result of other factors such as vacations, client mandated furloughs and client budgeting requirements.