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A Few Reasons to Own CSRV:
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| About | ||||||||||
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CSRV is a holding company for subsidiaries engaged in the Professional Employer Organization (PEO) Industry. As of December 31, 2002, CSRV had in excess of 800 clients and 32,000 worksite employees in 34 States. The majority of its revenues are derived from serving clients in the states of Florida, New Jersey, and Pennsylvania. CSRV’s operating headquarters are located in Ft. Lauderdale, Florida, with service centers located in Cherry Hill, New Jersey, Tampa and Jacksonville, Florida. Facilities are staffed with personnel to perform varying levels of payroll, processing and related tax compliance, human resources, safety, sales, and service functions. CSRV, through its wholly owned PEO subsidiary The Cura Group (Cura), has the ability to provide integrated and cost effective services for the management and administration of human resource and benefits administration, payroll and payroll taxes, workplace risk management, and government regulatory compliance. The means by which CSRV provides these services is to execute client service agreements, whereby its subsidiary, as the PEO, becomes a co-employer for some purposes (i.e., human resource responsibilities), while the client remains in operational control of its employees. This co-employment relationship allows clients to outsource their human resource responsibilities, thus reducing time and expense. |
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| Investment Opportunity | ||||||||||
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The PEO industry has grown significantly since its start in the late 1980's, with the last decade showing significant growth due to the number of small and medium size client businesses purchasing the diverse services offered by the PEO industry. Over the past 18 months, the industry has seen a significant evolution of the manner in which a successful PEO conducts its business. The PEO of 2003 and beyond will become the provider of value added services rather than the traditional wholesaler of inexpensive insurance products. Today's successful PEO is a marketplace of services related to human resource and benefits administration, employer regulatory compliance and risk management. CSRV believes the growth trend of the industry will continue. Several key factors it believes are driving the demand for PEO growth include:
The Small Business Administration estimates there are nearly six million businesses with fewer than 100 employees. These small to mid-size businesses employ more than 52 million workers with an aggregate annual payroll of more than $1.1 trillion. As PEOs are currently serving just 2% of that market, the growth potential for PEO services appears significant. With an average annual growth rate of 20%, more business owners are turning to the PEO industry to provide them with the tools necessary to increase productivity and profits. The industry has benefited from The National Association of Professional Employer Organizations (NAPEO), which was formed in 1985 and is the oldest association representing the interests of professional employer organizations. Serving more than two million employees, this organization has helped set standards for fiscal responsibility of its member PEO's. |
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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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| Our Advertisement To You | ||||||||||
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Are you a CEO of a Public Company or the Head of an Investor Relations or Public Relations Firm interested in Advertising your Company, or do you have a Product or Service that you would like Advertised to what we believe is the most Qualified & Largest Permission Based Opt-in Membership in the World, demographically speaking. Unlike any other Email Marketer in the World, we can Guarantee Your Advertisement to be Opened and Read by over 1 Million of our Membership within 12 Hours of when we start to send Emails. We believe no other Email Marketer in the World can make this claim. Yes, that’s right Guaranteed and Verified by what we believe is the Most Sophisticated Tracking Software in the World. Don’t be confused with other offers to Send Million’s of Emails as opposed to our offer whereby over 1 Million of our Members actually Open and Read Your Advertisement within 12 Hours of when we start to send emails, and many more thereafter. We Don’t Come Cheap! We charge a premium for our services. So, only serious inquiries need to reply. If you are interested in learning more about our services, please click here and provide us with your contact information and some detail of what you are looking to advertise. If we are interested one of our representative’s will contact you shortly. |
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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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