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URL:  http://boards.fool.com/great-googly-batman-another-stock-27529434.aspx

Subject:  Great googly, Batman, another stock! Date:  3/17/2009  1:34 PM
Author:  schuured Number:  825 of 1640

Good morning fellow stinkers. I have been trolling the depths of CAPSdom in search of another offering. Having thus returned from my quest, I hereby present Sykes Enterprises, Inc (SYKE):

Sykes bills itself as a company which offers "customer contact management solutions". Really, it's a customer service provider. Through various media (telephone, web, fax) it provides customer services for Fortune 1000 companies worldwide. In general, a poor economy has done little to damage their business, and many sectors are increasing their customer service departments to grab market share. This, clearly, benefits Sykes.

There are many things I like about Sykes, so let me spew forth the numbers (from Yahoo!).

Mkt Cap: $616 Million
P/E: about 10
PEG: 0.85
ROE: 16%

From the Income Statement:
Sales have been stable for the past 3 Quarters - neither up, nor down; but annual growth has been strong and increasing for the past 3 years: 6% from '04-05, 14% from 05-06, and 19% from 06-07.

Balance Sheet looks similarly good with cash on hand increasing quarter over quarter, with no debt!

Haven't really chewed on the cash flow yet, but I'm getting there.

SYKE is highly rated in CAPS with five stars, but I really don't recognize any of the top players. On the other hand, no notable red thumbs, either.

Inside ownership is strong with a total of about 16% of shares outstanding in the hands of "insiders." About 12% is held by the namesake, founder and CEO John Sykes with about 5.7 million shares.

In summary, I see a (relatively) small company with stable income and a proven track record of growth who is positioned well to weather this economic downturn and perhaps even profit from it. It appears well managed, with high insider ownership, a rock-solid balance sheet and what appears to be an attractive entry point. I'm sure, however, that I've missed something.

So, have at me.....

Ed
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