Scarlett Likes Empresaria - Buy

Buy Empresaria

Full article here : http://www.sharecrazy.com/tipsheet/moore080323.html

Investors don’t like recruitment companies right now, fearing a downturn in the economy. But if you are lloking for a good long-term investment then Scarlett Moore from Sharecrazy Supermarket says that Empresaria (EMR), is one recruitment company that deserves a closer look. My thinking is ‘How can you disagree with a woman called Scarlett ?’ Probably not the best way to pick your stocks but hey nothing else works !

The company has operations in 17 countries, and the major part of its revenues come from outside the United Kingdom, which will offset the downturn if it does inded materialize.

EMR’s most recent trading statement was positive, for the year ended 31.12.2007 it declared revenues of £146 million, almost double revenues in 2006, and £40 million in net fee income. Growth was reported in all operating regions but there was also strong organic growth in the UK.

Shares were at an 187p in June 2007, the all-time high, before falling below 80p, although they have recently recovered to 88p. Scarlett thinks they are ‘worth a punt’. Earnings are expected to be around 9p for 2007. Boosted by earnings from Asian businesses they should rise to to 12p for the current year. This gives a valuation of 7 times earnings, which would seem to require a really horrendous downturn. EMR are therefore recommended as a long-term investment.

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Personally I would like to see the red line get back above the black line before I jumped in but I am known for being excessively cautious.