STOCKS TELEGRAPH

Tag: staffing

  • ShiftPixy, Inc. (PIXY) Stock Undergoes Minor Volatility as MIAMI WORKS Campaign Continues

    ShiftPixy, Inc. (PIXY) stock prices were down by 3.39% as of the market closing on July 1st, 2021, bringing the price per share down to USD$2.28 at the end of the trading day. Subsequent pre-market fluctuations saw the stock rally by 1.75%, bringing it up to USD$2.32.

    MIAMI WORKS Campaign

    June 23rd, 2021 saw the company announce the launch of the MIAMI WORKS campaign, which provides staffing and recruiting solutions to facilitate the circumvention of the pandemic-driven staffing shortage in the restaurant and hospitality industries. PIXY hosted the first in a series of recruiting events on June 26th, 2021 in collaboration with local universities and community development groups. The event provided a platform for shift workers to easily find job opportunities that compensated workers with living wages, a signup bonus, flexible schedules, healthcare, workers’ compensation, and 401K benefits.

    Pandemic in South Florida

    South Florida was hit especially hard by severe staffing shortages following the outbreak of the pandemic, which proved to be a major challenge given how it relies so heavily on the hospitality and tourism business. The campaign will help business connect with and recruit willing and eligible workers more easily, facilitating the moves to get operations back to normal to effectively meet customer demand. A 60-day marketing effort has been initiated since the inauguration of the event, which seeks to connect the registered workforce to open positions across restaurants and other hospitality operators in the Miami area.

    Delivery Services Affected

    Compounding the effects of the labor shortage, third-party delivery services are facing a threat from authorities that would necessitate them to reclassify drivers as employees, rather than independent contractors. This has the potential of putting their business model and the restaurants they serve at risk. PIXY also facilitates the provision of a stable platform that offers fair wages and benefits for the delivery workers, allowing restaurants to reduce their reliance on third-party services by ramping up their own recruiting and staffing efforts.

    Facilitating Accessibility

    The job fair saw local restaurants and hospitality operators in PIXY-served communities being represented, where they were directly connected with the on-demand workforce. The process was made more accessible with the provision of the ability to complete onboarding quickly and efficiently, in an entirely paperless fashion.

    Future Outlook for PIXY

    Armed with the ongoing job fairs that increase the company’s scope and consolidate its brand image, PIXY is poised to capitalize on its trajectory of success. Investors are hopeful that the company will be able to usher in organic and long-term growth by making the most of the opportunities afforded to it.

  • 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.