Follow the big trend on corporate staffing

What is the mega-trend on corporate staffing? If you are employed by companies, it should not be a surprise to you that it is a major theme that companies are generally downsizing and are outsourcing a lot as a whole. It is impacting on almost all the sectors and none seems immune to the phenomenon! I guess all of us need to be prepared and consider a backup plan if the worst comes to you and me as well some day. While the US economy is slowly but surely improving, this trend is only accelerating due to more use of modern technologies and increasing costs of man power. Moving forward, I don't think this mega-trend will reverse but rather will become more and more pronounced! If you agree with this projection, what will be the natural choice of companies which will benefit from it? Well, this is how Corporate Resource Services, Inc (CRRS) will come into play nicely.

CRRS provides diversified staffing, recruiting, and consulting services in the United States. It offers trained employees in the areas of insurance, information technology, accounting, legal, engineering, science, healthcare, life sciences, creative services, hospitality, retail, general business, and light industrial work. The company’s staffing solutions include customized employee pre-training and testing, on-site facilities management, vendor management, risk assessment and management, market analyses, and productivity/occupational engineering studies. It provides administrative and light industrial staffing solutions; permanent and temporary professional, administrative, and clerical solutions to financial services, entertainment, media, advertising, fashion, and other companies; and professional insurance industry staffing solutions for personnel in claims processing, customer services, and related fields. As you can see, CRRS covers a wide range of staffing services in many different sectors and industries. That's why its business is really booming with this mega-trend. That's why its revenues have been increasing tremendously with a year over year growth rate of 35%. This bright prospects for CRRS have been reflected in its stock price now. As you can see below, its share price has doubled twice this year. Since this is just the beginning of this mega-trend, much more upside is very likely for CRRS. While I don't know how long it will take, I think this business will make the stock price up another 5-10 times eventually from this level. CRRS is on the top of my radar screen and I will get in at its weakness.

NOTE: I wrote about this company over a week ago but did not publish it right away (as you may notice the stock price on the chart above which was at around $2.2). I just noticed that its price jumped 20% today (closing price $3.20), likely due to its submission of the application to be listed on NASDAQ. Well good for the company but I'm not sure if such kind of price move will hold for long.