| NEWS ALERT | ||||||||||
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A Few Reasons to Own CSRV:
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| Update | ||||||||||
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Great News! Sometimes less said is better, we think CSRV’s PR (read below) speaks for itself. To us, we think these are Tremendous Numbers: Buying StaffAmerica for $17.5 Million Dollars, which will DOUBLE CSRV’s Revenues to close to $100 Million Dollars and increasing annual gross receipts from $600 Million to $1.15 Billion Dollars. WE THINK THIS IS ALL FANTASTIC AND YET CSRV’S STOCK STILL TRADES AT ABOUT 2 TIMES THIS YEARS EARNINGS. WE STILL BELIEVE THAT ONE DAY AND HOPEFULLY SOON CSRV WILL GARNER THE AUDIENCE BASED ON CURRENT PR THAT CSRV PROBABLY DESERVES! As we always say, “one never knows when New Pr is forthcoming” So make sure to keep a real close eye on CSRV, and Watch This Stock Trade. |
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| Press Release | ||||||||||
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Certified Services, Inc. Announces Strategic Addition to Its Human Resources Business NEW YORK June 12, 2003--Certified Services, Inc. (OTCBB:CSRV the "Company") a leading provider of professional employer organization (PEO) services, announced it had finalized the terms of its acquisition of the combined PEO operations of BACE International, Inc. ("StaffAmerica") for an aggregate purchase price of $17,500,000 consisting of cash, notes and CSRV shares. The acquisition is scheduled to close by June 28, 2003. On October 31, 2002, the Company entered into a Stock Purchase Agreement with BACE to acquire StaffAmerica pending a due diligence investigation and the determination of its fair value. The Company has co-managed StaffAmerica's operations since that date. "StaffAmerica will materially enhance Certified Service's presence on the Eastern seaboard and broaden our market penetration westward throughout Texas," stated Dan L. Pixler, CSRV's President and CEO. "StaffAmerica adds approximately 1,000 new clients to our existing base of 824 and over 30,000 worksite employees, increasing the workforce total to 62,000. This acquisition will bring us closer to our goal of 100,000 co-employees within our first five years of operation." "The acquisition of StaffAmerica, the third strategic acquisition by the Company since its entry into the PEO industry in November 2001, will increase CSRV's present annual gross receipts from $600,000,000 to $1,150,000,000 and will enhance operating results accordingly" explained Pixler, "while contributing important balance to the workplace risk of CSRV's clients. The acquisition of StaffAmerica also serves to materially elevate CSRV's market position within the burgeoning industry of business to business services." CSRV is a New York based holding company now entering its third year of operation. It currently provides, through its wholly owned subsidiary The Cura Group, Inc., a broad range of human resource services for small and medium size businesses including payroll and benefits administration, employee record keeping and regulatory compliance, health and workers' compensation insurance programs, and worksite safety management. The news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors, including among other things, the size or timing of customer contracts, new or increased competition, changes in market demand and seasonality of purchases of the Company's product and services. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors that could materially affect the company and its operations are included in certain forms the company files with the U.S. Securities and Exchange Commission. |
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| Valuation | ||||||||||
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Well, it’s nice to put together an advertisement for one of our clients whereby you don’t necessarily have to take our word for it. You need to look no further than CSRV’s PR Dated May 23rd, 2003. It appears to us that a Full Service Brokerage Firm by the name of Taglich Brothers RECOMMENDED CSRV with a $2.25 TARGET PRICE. Taglich Brothers claims to focus exclusively on Micro Cap Companies. To further our due diligence on Taglich, they too claim to get paid to write reports. Our understanding of Taglich is that they write the reports and then hand them over to their clients to do what they want with the reports (generally attempt to disseminate it). Bingo, this is where we come into the picture we get paid to advertise our clients business and PR to our membership. Taglich Brothers, in our opinion, has put together a rather detailed report on CSRV. For the year ending Dec 2002, CSRV reported $40.4 Million in Revenues up from $13.7 for 2001, and Net Income of $2.99 Million up from a loss of $0.734 in 2001. Taglich this year (for 2003) is estimating CSRV to generate $56.7 Million in Revenues, and $65 Million for 2004 and EPS of $0.46 this year and $0.57 for 2004. THESE PROJECTIONS DO NOT INCLUDE THE PENDING ACQUISITION OF STAFFAMERICA, WHICH SHOULD ADD AN ADDITIONAL $40 MILLION IN REVENUES TO CSRV. THIS ACQUISITION IS EXPECTED TO CLOSE ANY DAY. THE FOLLOWING IS AN EXCERPT OF TAGLICH’S BASIS FOR A $2.25 TARGET PRICE FOR CSRV. “We are initiating coverage of Certified Services, Inc., with a Speculative Buy recommendation and a twelve-month price target of $2.25 per share, based on our sales and earnings per share estimates for 2003. It is our belief that the Company will generate revenues of $6.63 per share and post earnings of $0.44 per share. We have established a twelve-month price target of $2.25 per share based on averaging the two valuation models (see below) and utilizing a discount factor of 60%. Our discount factor incorporates microcap risk, the current stock market environment …” “Valuation models: _A 18.5X P/E multiple based on the average of the Company’s peer group earnings multiples (’03, 04) applied to our earnings per share estimate of $0.48 for the next four quarters; and _A 0.37X price to sales multiple based on the Company’s trailing twelve month peer group average, applied to our revenue per share estimate of $6.88 for the next four quarters.” Another way to look at what CSRV could potentially be worth Near Term, is by taking a look at CSRV’s most recent 10Q dated 3/31/03. By looking at CSRV’s Balance Sheet we noticed almost $50 Million Dollars in Assets and about $26.5 Million in Liabilities, with Shareholders Equity of $23.5 Million Dollars or almost $2.75 Per Share! So, in other words what this means to us, if CSRV decided to liquidate their business, and sell off their assets and pay off their debts, FOR EVERY SHARE OF CSRV THAT SOMEONE OWNED TODAY, CSRV STOCK SHOULD BE WORTH $2.75 PER SHARE (ALMOST A TRIPLE). To sum up, we guess you kind of get the picture with CSRV, potentially the makings of a Real Winner, in an industry growing at 25% per annum, Great Revenue and EPS Growth, apparently a Strong Management Team. It appears to us that the only thing missing in this picture is the AUDIENCE! With potentially Significant PR on the Near Term Horizon, you must keep a REALLY, REALLY close eye on CSRV, and as always Watch This Stock Trade. |
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| Conclusion | ||||||||||
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Unlike ourselves, whereby we express our 1st Amendment Right of Freedom of Speech by giving our opinions, then disclaiming them thereafter. Brokerage Firms such as Taglich Brothers operate under the guidelines of the NASD among others. Whether or not you want to believe this adds more credibility to a profile, lies in the eyes of the beholder. Anyway, Taglich is looking for almost a Half a Buck in EPS this Year, at current levels CSRV Trades in the Market Place at about 2 Times earnings. Like we said earlier, we think one of the key ingredients that is missing to UNLEASH THE VALUE IN CSRV IS THE AUDIENCE, BUT DON’T TAKE OUR WORD FOR IT, IN A PR DATED 5/23/03 CSRV’s PRESIDENT WAS QUOTED AS SAYING: “Our company is thrilled to have retained the services of such a high quality firm. The retention of Taglich Brothers will enhance the information stream that is currently being shouldered by Dunlap & Kieft. Mr. Pixler further stated, "As our company continues to grow, we are striving to provide diversity of information regarding our company. Varied research provides a broader base of information for our shareholders and investors." PS- Nice move on WTNT! |
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******* Important Notice and Disclaimer: Please Read *******
The purpose of this advertisement is to provide publicity for the advertised company, its products or services. This advertisement is not a solicitation or recommendation to buy, sell or hold securities and does not provide an analysis of the financial position of the company. Investor Insights, and affiliates (II), publishes reports providing information on selected companies that II believes has investment potential. II is not a registered investment advisor or broker-dealer. This report is provided as an information service only, and the statements and opinions in this report should not be construed as an offer or solicitation to buy or sell any security. The above report is the opinion of II and is not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. II accepts no liability for any loss arising from an investor's reliance on or use of this report. An investment in CSRV is considered to be highly speculative and should not be considered unless a person can afford a complete loss of investment. An affiliate of II has been hired by the company, and received fifty thousand free trading shares of common stock of CSRV by a third party for the publication and circulation of this report. II intends to sell all or a portion of the CSRV stock at or about the time of publication of this report. Subsequently II may buy or sell shares of CSRV stock in the open market. Since an affiliate of II has been compensated there is an inherent conflict of interest. This report contains forward-looking statements, which involve risks, and uncertainties that may cause actual results to differ materially from those set forth in the forward-looking statements. For further details concerning these risks and uncertainties, see the SEC filings of CSRV including the company's most recent annual and quarterly reports. |
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