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Profitable, Undervalued, on a Growth Roll & Prospects Going Forward Abound

Jan. 06, 2011 8:38 AM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Thursday 1-6-2011

Dr. John L. Faessel


Commentary and Insights



Profitable, Undervalued, on a Growth Roll & Prospects Going Forward Abound

Command Center, Inc. (CCNI) $0.40 OTCBB

Market cap $21.7 million


Here’s a min-cap to play for the New Year that a savvy old pro and good pal of mine really likes for 2011.

(CCNI) has solid fundamentals and a great chart. Profitable, undervalued, on a growth roll and prospects going forward abound. Take a look at (CCNI)’s long-term and short-term charts and you can see that something good is going on with this mini-cap. And of note: it’s in the red hot “temp help” sector that in this troubled job market is flourishing due to industry’s need for optimal flexibility and to keep costs low. This is a wow story: read on!

Today (CCNI) just announced that Q4 revenue was up 45% over 2009 – ($19.4 million vs. 13.16 million.) Total 2010 revenue was up 35% from 2009 – ($70 million vs. $51.95 million.) They recently reported a $1.07 profit ($0.02 a share) in Q3.

My friend thinks they could do revenue of $100 million in 2011.

(CCNI) sells at one third of revenues and has a continuing and increasing revenue stream and has dramatically reduced liabilities / debt. The new news is that they have a new CFO who has a terrific reputation and to built up another "temp" agency some years ago.*

According to a recent statement by (CCNI)’s Chairman and CEO, Glenn Welstad; “We are thrilled by the continuing sales and profit strength going into year-end, a period that is historically slower for the staffing sector.” He noted that Staffing Industry Analysts (www.staffingindustry.com) recognized (CCNI) as having posted for the largest year-over-year revenue increase - 49.4% for Q3- among the 26 public staffing firms that it tracks.      

* Here is a “tell” going forward; In October (CCNI) appointed Jeff Mitchell as their new CFO. Mitchell has the reputation of building a major temp labor business and I’m sure he is now at (CCNI) to accomplish the same thing. Ck out this resume, it’s a beauty. Prior to joining (CCNI) Mr. Mitchell had served since September of 2005 as the CFO of Select Staffing, a full-service national staffing company based in Santa Barbara, California. In that role, he executed an aggressive growth strategy to increase Select’s revenue to $1.7 billion from $400 million over a five-year period. Mr. Mitchell was responsible for the financial modeling and evaluation of each prospective acquisition for Select, which led to about 40 transactions contributing $1.3 billion in revenue. He also coordinated the business plan and credit agreements to re-capitalize the company numerous times through traditional debt with various investment bankers including Goldman Sachs, BNP Paribas and Bank of the West. During the ten years prior to assuming the CFO position at Select Staffing, Mr. Mitchell served in executive positions of several companies in his home state of Utah. He was CEO of Compensation Advisors LLC from October ’04 to September ’05 and served as COO/CFO and VP of Risk Management for Wasatch Property Management and its subsidiary, Freedom Advisors LLC, from June ’03 to October ’04. Prior to joining Wasatch, Mr. Mitchell had served from December ’98 through June ’03 as Director of Financial Services (North America) and Controller (North & South America) for a Rio Tinto subsidiary, Rio Tinto PLC & Kennecott Exploration Company. Previously, he gained extensive audit experience while servicing the clients of Price Waterhouse (now PricewaterhouseCoopers) in Salt Lake City.


(CCNI) operates on-demand labor stores in the United States. It provides unskilled and semi-skilled temporary employees for manual labor, light industrial, and skilled trade applications. The company serves primarily small to mid-sized businesses in the construction, transportation, warehousing, landscaping, light manufacturing, retail, wholesale, and facilities industries. As of December 25, 2009, it owned and operated 50 on-demand labor stores in 20 states. The company was founded in 2002 and is headquartered in Post Falls, Idaho.

Website: www.commandonline.com.






Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: No Position in this stock

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