Staffing Stock Story


USD 3.70  0.02  0.54%   

In this story, I am going to address all latest Staffing 360 shareholders considering to hold on to their positions in Staffing 360. I will analyze why, despite the latest dip, the longer-term basic indicators of the firm are still sound.
Published over three months ago
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Staffing 360 (NASDAQ:STAF) is to drop even more in June

The company has a beta of 0.9322. Let's try to break down what Staffing's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Staffing 360 will likely underperform. The beta indicator helps investors understand whether Staffing 360 moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Staffing deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Staffing 360 Solutions. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Staffing 360

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Staffing 360's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Staffing 360 in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Staffing 360. Your research has to be compared to or analyzed against Staffing 360's peers to derive any actionable benefits. When done correctly, Staffing 360's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Staffing 360 Solutions.

How important is Staffing 360's Liquidity

Staffing 360 financial leverage refers to using borrowed capital as a funding source to finance Staffing 360 Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Staffing 360 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 Staffing 360's total debt and its cash.

How does Staffing utilize its cash?

To perform a cash flow analysis of Staffing 360, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Staffing 360 is receiving and how much cash it distributes out in a given period. The Staffing 360 cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Staffing 360 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 6.03 Million

Breaking down Staffing 360 Indicators

The latest dip in stock price created some momentum for shareholders as it was traded today as low as 0.63 and as high as 0.69 per share. The company executives have failed to build on market volatilities in April. However, diversifying your overall positions with Staffing 360 Solutions may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.37. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Staffing 360 Solutions partners.

Staffing 360 latest dip is confusing

The standard deviation is down to 4.3 as of today. Staffing 360 Solutions exhibits very low volatility with skewness of 0.19 and kurtosis of 1.36. However, we advise investors to further study Staffing 360 Solutions technical indicators to make sure all market info is available and is reliable. Staffing 360 Solutions is a potential penny stock. Although Staffing 360 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 Staffing 360 Solutions. 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 Staffing 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

Although many of the other players in the staffing & employment services industry are either recovering or due for a correction, Staffing 360 may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Staffing valuation and our trade advice on Staffing 360 is due to the recent market swings and your selection of investing horizon. 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 Staffing 360.

Editorial Staff

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 Gabriel Shpitalnik do not own shares of Staffing 360 Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.

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