Joe Craig
Ellicott City, MD
StockCentral Administrator
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| 01/05/2007 8:42 AM |
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Doug Gerlach selected TALX as his first pick. Doug's SSG is attached to his message in this topic.
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Joe |
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Doug Gerlach
Cambridge, MA
http://www.iclub.com/
President, ICLUBcentral
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| 01/05/2007 10:40 AM |
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TALX Corporation is a provider of payroll and human resources services for businesses. They are the market leader in outsourced employment and income verifications, and outsourced unemployment cost control. Their suite of online, automated services replace paper-based, manual processes common to many payroll and HR departments. Their paperless pay solutions provide employees with universal and secure access to pay data via intranets, portals, phone, and Web. By allowing companies to outsource these services, the companies can reduce their administrative/human resources/payroll staff and recognize a significant return on investment.
In November 2006, Forbes named TALX to its list of 200 Best Small Companies in America for the fifth consecutive year. TALX currently serves over 10,000 employers, including 3/4 of the Fortune 500.
TALX is a publicly-traded company with over 1,000 employees. TALX common stock trades on NASDAQ under the symbol TALX. For more information on TALX, visit their web site at:
http://www.talx.com/
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Posting from ICLUBcentral world headquarters in the Harvard Square's historic College House, Cambridge, MA
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Dan Hess
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| 01/05/2007 10:41 AM |
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I am unable to open Doug's TALX SSG. I receive a message file is not in the proper format. When I open the file with Notepad is seems to be in binary form. Have others been able to download successfully?
Dan Hess |
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Doug Gerlach
Cambridge, MA
http://www.iclub.com/
President, ICLUBcentral
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| 01/05/2007 11:39 AM |
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A few notes on my stock study:
I've been a bit aggressive in projecting TALX's growth in the next five years, using a 25% growth rate for sales & EPS. But since profit margins are expanding, and I've been a bit more conservative in selecting the projected high and low PE ratios, I think the upside is still pretty strong even if the company growth falls a bit short of that rate.
Institutional holdings are a bit high, as well, but that's not uncommon with a small company.
At the 12/31/06 stock price, the Relative Value is a bit high (137.5%) based on the PEs calculated after removing outliers from the past five years, but is 103.2% the using raw unadjusted PEs. The Projected RV is 110% using the adjusted average PEs, so I think the stock is pretty fairly priced right now.
Doug
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Posting from ICLUBcentral world headquarters in the Harvard Square's historic College House, Cambridge, MA
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Doug Gerlach
Cambridge, MA
http://www.iclub.com/
President, ICLUBcentral
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| 01/05/2007 11:40 AM |
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Let me try posting the SSG:
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 Attachment: TALX.SSG
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Posting from ICLUBcentral world headquarters in the Harvard Square's historic College House, Cambridge, MA
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Dan Hess
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| 01/05/2007 9:23 PM |
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Thanks Doug, that now works for me.
Glad to see at least one of the gurus picked a stock not beginning with an L. I was beginning to think I found a new stock selection method. 
Dan Hess |
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Pam Wright
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| 01/05/2007 10:25 PM |
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Dan Hess wrote: Thanks Doug, that now works for me.
Glad to see at least one of the gurus picked a stock not beginning with an L. I was beginning to think I found a new stock selection method.
Thanks, Dan for posting before I could about the SSG.
I echo your thinking on the whole alphabet thing! Those of us who know Douglas know that he's a bit of a non-conformist. He is, of course, the originator of the the spelling of "Kewl"
I wondered, though, if it was a blind draw and for some weird reason they were all going to start with an L stock.
Pam
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Doris Raum
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| 01/16/2007 9:52 AM |
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I cannot get the SSG to open for me. Any tips? I saved it to My Documents.
Doris |
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Joe Craig
Ellicott City, MD
StockCentral Administrator
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| 01/16/2007 11:06 AM |
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| How did you try to open the SSG file? |
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Joe |
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Doris Raum
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| 01/16/2007 12:21 PM |
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After I tried it from My Documents, I tried it again. This time I was given the option to Open or Save. I chose Open and it goes to Notepad. From My Documents it is in Notepad also.
Doris |
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Joe Craig
Ellicott City, MD
StockCentral Administrator
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| 01/16/2007 1:01 PM |
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Do you own Toolkit or any other SSG software? If so, what?
(SSG files are intended to be opened by software that understands the data in them. That includes Toolkit, Classic Plus, and Stock Analyst. You can also use the SSG files at stockfundas.com and with several other software programs.)
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Joe |
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Doris Raum
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| 01/16/2007 1:40 PM |
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Yes, Toolkit, but it's not on my computer at this time. Do I need it to get the SSG?
Doris |
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Joe Craig
Ellicott City, MD
StockCentral Administrator
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| 01/16/2007 4:15 PM |
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You will need Toolkit or another program that understands SSG files in order to make sense of the data. If you open it in notepad, what you should see is a list of (mostly) numbers.
There are spreadsheet programs available, too, that can open and decode the data in the files.
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Joe |
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WILLIAM JOHNS
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| 01/17/2007 8:01 AM |
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I looked over the SSG and felt somewhat cautious due to the recently declining margins the past 2 quarters. A comparison shows TALX gross & operating margins significantly higher than competitors (ADP & Industry) at Yahoo. I question their ability to maintain the margin expansion evident until the past 2 quarters.
Bill Johns |
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Gene Rooks
Gotha, FL (W. of Orlando)
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| 01/17/2007 9:27 AM |
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Doug, I see you projected earnings at 25% on your SSG. I was wondering what factors led you to use that for a five year target? In looking at TALX vs. PAYX, is it because TALX is much smaller that it justifies that much higher growth rate?
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Gene Rooks, Director
Space Coast Chapter
Accounting Instructor |
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Doug Gerlach
Cambridge, MA
http://www.iclub.com/
President, ICLUBcentral
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| 01/18/2007 12:56 PM |
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Posted By Gene Rooks on 01/17/2007 9:27 AM Doug, I see you projected earnings at 25% on your SSG. I was wondering what factors led you to use that for a five year target? In looking at TALX vs. PAYX, is it because TALX is much smaller that it justifies that much higher growth rate?
Doug
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Posting from ICLUBcentral world headquarters in the Harvard Square's historic College House, Cambridge, MA
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Doug Gerlach
Cambridge, MA
http://www.iclub.com/
President, ICLUBcentral
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| 01/18/2007 1:01 PM |
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Posted By WILLIAM JOHNS on 01/17/2007 8:01 AM I looked over the SSG and felt somewhat cautious due to the recently declining margins the past 2 quarters. A comparison shows TALX gross & operating margins significantly higher than competitors (ADP & Industry) at Yahoo. I question their ability to maintain the margin expansion evident until the past 2 quarters.
Companies with high margins are often targets for competitive pressure, so it's understandandable that their margins would begin to fall back to be closer to the average of their competitors. I don't take this as a negative -- the management teams of a lot of companies would just love to have the "problem" of managing a company that has margins that are higher than their competitors! These companies can absorb price reductions and increased marketing costs and still deliver on the bottom line in a respectable way.
Doug
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Posting from ICLUBcentral world headquarters in the Harvard Square's historic College House, Cambridge, MA
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Doris Raum
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| 01/18/2007 4:54 PM |
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Doug, I have installed Toolkit. Now how do I move it from here to Toolkit? Thanks.
Doris |
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Joe Craig
Ellicott City, MD
StockCentral Administrator
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| 01/18/2007 9:50 PM |
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Doris,
Just click on the link to Doug's AMMD.SSG file. It should download and open in Toolkit. If it doesn't, tell us what happended and we'll make some more suggestions. |
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Joe |
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