Heidrick & Struggles International Inc. (HSII)

All Comments on HSII

  • commenter
    Greg Weston
    Aug 10 03:09 PM
    My Website
    What's New at Korn Ferry & Maguire Properties? [view article]
    Good article! I would be interested in your thoughts on my recent article about MPG, which references and updates your NAV estimates. Reply
  • commenter
    SeekingAlpha
    Editors
    Apr 06 05:18 AM
    My Website
    General Discussion on HSII
    Is this a buy or a sell? Reply
  • commenter
    JTH
    Mar 10 09:37 AM
    Are Staffing Stocks Diverging? [view article]
    In point #2, "leading to less voluntary turnover as people are presented with less opportunities to move elsewhere" should actually read "presented with FEWER OPPORTUNITIES" or "LESS OPPORTUNITY". Reply
  • commenter
    DaveinHacken
    sack
    Feb 26 11:23 AM
    My Website
    4 Steps to Ensure Your Protection in Today's Environment [view article]
    Did you cover on HSII before today's conference call? Are you still short? Reply
  • commenter
    DaveinHacken
    sack
    Feb 26 11:20 AM
    My Website
    Kelly: Some Portfolio Changes [view article]
    Good call on HSII. Record profits last year (with 50% coming from overseas) and guidance for this year is positive as well. Reply
  • commenter
    nwolfson
    Feb 19 08:36 AM
    Kelly: Some Portfolio Changes [view article]
    I would like to follow you for 3 months Reply
  • commenter
    HarMegiddo
    Feb 03 04:47 PM
    Kelly: Some Portfolio Changes [view article]
    every1 seems to like turkcell anymore. im a vimpelcom fan myself :).
    you might want to call vanguard and see if they can start a management staffing + outsourcing ETF. j/k
    i enjoy reading your posts, thx.


     Reply
  • commenter
    DaveinHacken
    sack
    Dec 31 09:27 PM
    My Website
    Korn Ferry, Monster, Heidrick & Struggles: Recession Risk Not Priced In [view article]
    Thanks for the response.

    Regarding points 3 and 4:

    3) By the same token, aren't many of HSII's domestic clients companies with international business that would lessen their exposure to a U.S. slowdown?

    4) Does your Q1 cash estimate include the additional earnings HSII will retain in that quarter?

    I'd wish you good luck, but since we're on opposite sides of a trade here, I'll just wish you Happy New Year.     Reply
  • commenter
    Stocky
    Dec 27 05:46 PM
    Korn Ferry, Monster, Heidrick & Struggles: Recession Risk Not Priced In [view article]
    Good Analysis. You should get short SFN, KFRC, CBR, SAPE, MPS, ANSR, RHI, BE and CDI as well. It is very easy to fire contractors without paying unemployment or issuing press releases. Check out what all these companies did in 2000-2001. Rising unemployement, jobless claims and continuing claims supports your thesis as well. Reply
  • commenter
    Research
    Intensive
    Investing
    Dec 24 10:48 PM
    Korn Ferry, Monster, Heidrick & Struggles: Recession Risk Not Priced In [view article]
    Hi Dave,

    Thanks for the comments. In response:

    1) Though the stocks have already been hit hard, this is not much unlike the trend that occurred in 2000-2001; these stocks get marked down in 2 stages. The first (which has already occurs) happens when the market stops treating them a growth stories and begins to have more of a flattish outlook. The 2nd stage occurs when the businesses show clear signs of cylicality, and operating performance falls. Check my prior write-up on KFY why for I think there is still more room for these to fall.

    2) This is a long debate, but I will say that the fed's impact has been negligible so far (LIBOR spreads have continued to increase, etc.), and that there are many arguments put forth by many smart people supporting serious recession risks.

    3) I'm glad you brought this up. On an income basis, it gets ~ 61% from North America. Also, most of its international exposure is to multi-nationals, which have relatively greater exposure to the US than local companies (this is why in the last recession revenues and income abroad also dropped off a cliff, and will likely happen again this time around, though perhaps to a lesser extent).

    4) The cash number is misleading. They have $112M in bonus payments due in Q1, and $15M they still have to pay for the Highland Partners acquisition, so lets say the current number is more like $150M. On top of that they are using most that money for buybacks, which are succeeding only to keep the share count basically flat, because of the generous share grants to employees. And they are also buying their stock on peak earnings, which in the long term I believe is destroying--not adding--shareholder value. Buybacks are not good when you are buying your own overvalued stock.

    5) This will take some time to play out. But given HSII's sector concentration, I think its more likely than not that we'll see significant pressure in Q1 of next year, if not next quarter.     Reply
  • commenter
    DaveinHacken
    sack
    Dec 21 11:35 PM
    My Website
    Korn Ferry, Monster, Heidrick & Struggles: Recession Risk Not Priced In [view article]
    Here are a few reasons I think you shouldn't short HSII:

    1) Your U.S. recession fears are baked into the stock prices in the sector already -- look at the one-year charts.

    2) A recession next year is unlikely -- the Fed is ahead of the curve cutting rates, and the weaker dollar has American exports booming.

    3) Even if there is a recession in the U.S., HSII gets 44% of its revenue from overseas (Europe and Asia).

    4) HSII has $218 million in cash, no debt, and a market cap of only $619 million. You really want to short this company? They could launch a massive buyback if they wanted and squeeze you.

    5) KFY just beat earnings and its share price went up 20%. What do you think will happen if HSII beats earnings?
     Reply
Loading...
Symbols:
Authors:
Quick Links: