In today’s tight economy, businesses are more focused than ever on controlling expenses. One of the tactics that has been relied upon more heavily now than ever in the past is the use of staffing companies to supply employees. This strategy allows corporations access to top notch workers from laborers to executives while controlling costs.
In many cases, such as Toyota Motor Company’s manufacturing plant in Georgetown, Kentucky, employees are hired nearly exclusively through a staffing service under contract for a number of years before a decision must be made to hire as a bona fide Toyota employee. In other similar cases, staffing agencies work in conjunction with companies both large and small to provide "on demand" employee solutions to handle a specific task. It’s a win-win-win situation for the company in need, the staffing agency and people seeking employment.
In a testament to the power of the platform, Idaho-based Command Center, Inc. (OTCBB:CCNI), a national provider of on-demand and temporary staffing solutions, is seeing exponential growth as a result of their streamlined business model that is exploiting the ever-growing demand for cost-effective labor solutions.
The Company is primarily engaged in the areas of light industrial, hospitality and event services, as well as other assignments. Command Center’s unique "Branch in a Box" business model allows the company swiftly to grow both vertically and horizontally to maximize business opportunities by handling the demands of companies in a multitude of industries anywhere across the country.
The flexibility of the model has resulted in demonstrations of the strength of the Company such as the critical roles that Command Center played in the clean-up of the aftermaths of Hurricane Katrina and the Gulf Oil Spill.
In an OTC world where developmental companies struggle to produce revenue, Command Center’s financials are nearly colossal compared to its peers of the exchange. At the beginning of April, the Company announced first-quarter revenue of $16.4 million, a 38% increase over the same period in 2010. In a show of expansion initiatives, Command Center had three more company-owned stores operating during March 2011 than it did during March 2010, raising its total to 53.
Today, Command Center announced that its revenue-generating pace is still quickening. April 2011 revenue climbed to $5.83 million, a 46% increase over the prior-year period which produced $3.99 million. This brings the Company’s yearly total to a searing $22.23 million through the first four months in 2011, a total that would leave most OTC companies salivating.
The total is also somewhat alarming as Command Center is only sporting a market cap presently of approximately $23 million. In a world with bloated market caps that are unrealistic multiples of a company’s revenue, Command Center is an exception that seems positioned for a possible cap explosion as revenues are nearly topping market capitalization with eight months remaining in the year.
A thinly-traded stock with less than 40 million in the float, CCNI has been in a strong technical uptrend since November 2009 when it found itself in a multiple bottom in the area of six cents. The cost of a share has not looked back since, touching 56 cents late in March. In the midst of a minor technical correction which saw a pullback and saw shares slip to touch 36 cents briefly, investors appear once again to be taking notice of this low-key company as shares are back on the rise today with an intraday high of 48 cents and a close at 42 cents.
Resistance is sitting there, along with the 50-day simple moving average, and will be the next challenge for the share price as it could be gearing up to take another stab at the 52-week top. With revenue continuing to rise and the technical components in place, both technical and fundamental traders may soon be taking an even closer look at Command Center, Inc. Proper due diligence is always encouraged.
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