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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (49927)10/31/2012 8:35:19 PM
From: E_K_S   of 78669
 
Re: Kelly Services, Inc. (KELYA)

I had KELYA on my radar screen but passed on the investment. They had negative EPS two years in the last five but never really lead the recovery where one would think they would. So, either our so called job recovery is still w/o traction or KELYA is or has lost their lead in this sector.

Many of the financial criteria show that this name is significantly undervalued maybe as much as 80% (using a modified EKS$), I think there are better places to deploy new funds.

I am still being very cautious on new investments and have lowered my expectations on capital appreciation. I will take a 10% return in both dividend and capital gains as long as I do not step on a land mine. I just do not think KELYA can deliver that conservative return in the short term.

I have been wrong and have watched this name for over 12 months so maybe their time has arrived. It's been a looser over the last twelve months but maybe they will do better in the next twelve months.

EKS
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