Free, unbiased analysis & opinion on small & micro cap stocks
    It's All About Jobs
    May 8, 2012  PSW Staff
    There are plenty of ways to play the jobs market including using leverage and complicated options strategies.  
    For the average investor, though, these methods usually do not result in a quick buck.  General Employment
    Enterprises Inc. (JOB) is a stock that may offer those looking to invest in the jobs market a great opportunity to
    double or triple their money in a relatively short period of time without risking much capital.

General Employment Enterprises, Inc. provides contract and placement staffing services for business and
industry, primarily specializing in the placement of information technology, engineering, agricultural and
accounting professionals.  It also provides labor and human resource solutions, including temporary staffing,
human resources and payroll outsourcing services, labor and employment consulting and workforce solutions.

General Employment Enterprises is a fairly small company with 20,449,675 shares outstanding.  76% of the
shares are owned by insiders leaving a tiny float of just under 4 million shares.  Only about half a percent of the
float is held short so despite very light volume in this stock, shorts would only need less than 2 days to cover all of
the open positions.  A slight increase in volume beginning late last year thanks to improving unemployment
numbers caused the stock price to more than double.  Volume has since tailed off, and the price has dropped a
little bit.

Given some very solid profitability and a large increase in revenue due to acquisitions of late, some stability in the
stock price could allow for some reduced risk for anyone looking to get in now while the unemployment picture is
looking weak again, and waiting for better numbers to come out in the later half of the year.  This seems like a
strong possibility given that the two recent months that have caused all of the panic are still showing well north of
100,000 new jobs added a month.

The Company’s professional staffing services business is highly dependent on national employment trends in
general and on the demand for professional staff in particular.  As an indicator of employment conditions, the
national unemployment rate was 8.5% in December 2011 and 9.4% in December 2010.  Management has
implemented a strategy which included cost reduction efforts as well as identifying strategic acquisitions to
improve the overall profitability and cash flows of the Company which will pay big dividends should the
unemployment rate continue to decline.

During the company's most recent quarter, net revenues increased $6,808,000 or 114.0% from the same period
last year primarily due to acquisitions.  Net income was $23 thousand compared with $15 thousand in the same
period in 2010, a small profit no matter how you slice it, but it shows consistency with a lot of potential for the
short to mid term future.

We would look to pick up this stock with perhaps an even smaller amount of capital one would normally use for
penny stocks, especially given the stock is listed and below a dollar, and sees very light trading volume.  We
would look for $0.50 as a starting point with a stop loss at around $0.25.  A profit target would make sense
anywhere from $1.00 to $1.50 with a two to three month time horizon.
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