STOCKS TELEGRAPH

Tag: STAF

  • Staffing 360 Solutions, Inc. (STAF) Stock Skyrockets Following Announcement of Reverse Stock Split

    Staffing 360 Solutions, Inc. (STAF) stock prices were down by 7.43% as of the market closing on June 30th, 2021, bringing the price per share down to USD$0.5744 at the end of the trading day. Subsequent pre-market fluctuations saw the stock skyrocket by a staggering 552.86%, bringing it up to USD$3.75.

    Reverse Stock Split

    June 30th, 2021 saw the company announce its intent to implement a reverse stock split of its common stock at a ratio of 6 pre-split shares being consolidated into 1 post-split share. The stock split went into effect at 5:00 pm EDT on June 30th, 2021, with the company’s shares continuing to be traded on the NASDAQ Capital Market under the STAF ticker symbol. The shares will begin trading on a split-adjusted basis when the market opens on July 1st, 2021.

    Details of the Reverse Split

    The company’s Board of Directors were authorized to effect a reverse stock split on June 21st, 2021 at a special meeting of stockholders, with the amendment to the Certificate of Incorporation allowing for a ratio of at least 1-for-2 and not more than 1-for-20. While the stock split will not affect the percentage interest of any stockholder in the company’s equity, there will be cases where stockholders will own a fractional share. In such cases, the share will be rounded up to the nearest whole number of shares. The number of common stock outstanding will go from 39,166,528 to 6,527,755.

    Loan Forgiveness

    The company recent reported having been granted full forgiveness by the Small Business Administration for the USD$10 million Paycheck Protection Program loan. The loan was given to Monroe Staffing Services, LLC, an indirect wholly owned subsidiary of STAF. Since, the company has applied for further forgiveness of USD$9.4 million in PPP loans, with management confident in their being written off. Cumulatively, STAF has achieved a 55% reduction in its debt over the past year.

    Q2 2021 Financial Reports

    STAF forecasts financial reports for Q2 2021, ended July 3rd, 2021, to indicate roughly 20% year-over-year growth in revenue up to USD$52 million. Gross profits for the quarter are also expected to be up by 20%, with reports of USD$457,000 in operating profit as compared to USD$1.5 million operating loss in Q2 2020.

    Future Outlook for STAF

    With the drastic change seen by its stock price as a result of the reverse stock split, STAF is poised to capitalize on its continued listing on the Nasdaq Capital Market. Investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Staffing 360 Solutions, Inc. (STAF) stock is Popping High: What’s Going on?

    Staffing 360 Solutions, Inc. (STAF) stock announced improved anticipated second quarter 2021 financial results after which the STAF stock price saw an uptrend of 14.46% to reach $0.69 a share as of this writing. The stock went high by 1.62% at the previous closing. Let’s check out the recent events in detail.

    Second Quarter 2021 Anticipated Financial Results:

    Based on eleven weeks’ good performance through the mid of June in its three operating segments, the STAF stock anticipates revenue growth of 20% over the year which fulfills the growth estimate previously announced in the first-quarter conference call. 20% anticipated gross profit for the second quarter of 2021 is reported today which is also aligned with the previous estimate.

    The anticipated revenue for the second quarter is more than $52 million and $457,000 operating profit is reported as compared to $1.5 million loss second quarter of 2020. STAF’s gross profit recovery and its cost-saving initiatives have driven the gross profit growth. The operating expenses are anticipated to be $8.2 million in the second quarter of 2021 as compared to $9.0 million in the same quarter of 2020.

    Materially Reduced Interest Expense:

    The completion of interest raises in December 2020, February 2021, and April 2021 has materially reduced the interest expense on the income statement of STAF stock. The interest charge of $2.4 million reported in the first quarter of 2020 reduced to $1.2 million in the first quarter of 2021. Similarly, the $2.1 million interest charge reported in the second quarter of 2021 reduced to $1.1 million in the second quarter of 2021. This means the interest charges were reduced by 50% in the first six months of 2021. Consequently, the STAF stock expects positive net income for the second quarter of 2021.

    Loan Forgiveness:

    Staffing stock recently received the notification from small business administration according to which $10 million PPP loan has been forgiven to the Monroe Staffing Services, LLC, which is an indirect subsidiary of STAF stock. Staffing 360 Solutions has applied for the forgiveness of additional PPP loans of $9.4 million and is optimistic that the stock would get the forgiveness for the remaining loans.

    Conclusion:

    Investors are responding to the anticipated second quarter 2021 financial results announced by STAF stock today. The COVID-19 pandemic had badly affected the business, but stock is now in the recovery phase after various cost-saving initiatives. STAF stock cumulative debt reduced to 55% in the last 12 months in which $10 million loan forgiveness is also included. Though the penny stock is improving its balance sheet, still investors need to cautious before adding this stock to their portfolio.