Steve Alexander

Barrett Business Services Earnings Review

Sounds like hindsight, but BBSI was really a no brainer. Net cash was almost half of market cap, and no debt. The company was in a good position to ride out any troubles in California, plus they had spent the past 2 years diversifying into other western markets. Long term, PEO is an attractive growth market. I haven't heard the CC, but the CEO is quite entertaining. He sounds like grandpa telling it like it is.

Steve
magicdiligence.com

Barrett Business Services: Jumping in Ahead of Earnings

The company holds nearly half it's market cap in cash with no debt - enterprise value is only a bit above 75 million. With 56m in cash and no debt, they can survive a downturn for some time. California is a challenge, no doubt. They've been trying to expand their geographical base with acquisitions in Arizona, Colorado, and Utah.

The trick is surviving the downturn, which the company is well positioned to do. Try a DFCF scenario - the stock is 20% undervalued today assuming the company never increases free cash flow for 10 years!

Steve
magicdiligence.com

A Good Time To Buy Barrett Business Services

Thomas - Great article. I like BBSI as well. They are a top 25 "Magic Formula" stock with no debt, solid cash flows, a good dividend, highly vested management, and good growth potential. I recently tapped them as a "Top Pick" from the Magic Formula screen:

www.magicdiligence.com