Dallas Salazar
IPOs, contrarian, long/short equity, long-term horizon

TriNet: An Unsustainable Growth Strategy That Will Soon Fail And Expose The Underlying Unprofitable Business

Who is TriNet Group, Inc.?

TriNet Group, Inc. (NYSE:TNET) provides human resources solutions to small and medium-sized businesses in the United States and Canada. The company offers services, such as payroll processing, human capital consulting, and employment law compliance, as well as employee benefits, including health insurance, retirement plans, and workers compensation insurance.

TNET recently held an IPO on 3/27/2014. The main underwriters were J.P. Morgan, Morgan Stanley, and Deutsche Bank. The company has been consistently trading upward since the IPO and currently has a market cap of $1.5 billion.

What do they do and how they expect to remain competitive going forward?

First, what TNET "officially" does, TNET is an outsourced human resource provider that acts as...

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