GEE Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>GEE</div>
JOB -- USA Stock  

USD 1.22  0.05  3.94%

GEE Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 142.63 Million. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 6.7 M, whereas Earnings before Tax are forecasted to decline to (12.7 M). As many of us are excited about industrials space, it is fair to go over GEE Group. We will evaluate if GEE shares are reasonably priced going into February. This post is to show some fundamental factors affecting GEE's products and services. I will also drop some light on how it may impact the investing outlook for GEE in February.
Published over two weeks ago
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Another strong showing for GEE
About 26.0% of the company shares are held by company insiders. Insiders ownership of GEE Group refers to the amount of GEE Group equity owned by GEE officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of GEE, including its current ownership diagnostics.

Watch out for price decline

Please consider monitoring GEE on a daily basis if you are holding a position in it. GEE is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as GEE stock to be traded above the $1 level to remain listed. If GEE stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is GEE's Liquidity

GEE financial leverage refers to using borrowed capital as a funding source to finance GEE Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. GEE financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between GEE's total debt and its cash.

How GEE utilizes its cash?

To perform a cash flow analysis of GEE, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash GEE is receiving and how much cash it distributes out in a given period. The GEE cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. GEE Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (2.58 Million)

Sale by Alexander Stuckey of 96800 shares of GEE

Legal trades by GEE insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
GEE insider trading alert for sale of common stock no par value by Alexander Stuckey, Chief Administrative Officer, on 14th of October 2020. This event was filed by Gee Group Inc with SEC on 2020-10-14. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving GEE Investor Appetite?

GEE Group has a total of seventeen million six hundred seventy thousand outstanding shares. GEE secures considerable amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.
 2018 2019 2020 2021 (projected)
Interest Expense12.44 M12.23 M14.07 M15.18 M
Gross Profit52.02 M44.7 M51.41 M42.5 M

Ownership Breakdown

Retail Investors
56.75%
Insiders
25.73%
Institutions
17.52%
Retail Investors56.75
Insiders25.73
Institutions17.52

Can GEE build up on the current rise?

Current downside variance is at 9.6. GEE Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect GEE Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of GEE future alpha. GEE Group is a potential penny stock. Although GEE may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in GEE Group. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Takeaway

Whereas many other companies under the staffing & employment services industry are still a bit expensive, GEE may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to GEE.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of GEE Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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