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weskirby - Wed, 01 Jan 03 :

happy new year to all!
I used to have a holding in tmp worldwide (aka "MONSTER.COM") which is supposedly one of the largest rescruitment firms globally and the only recruitment firm in the nasdaq100 - its share price has been hammered from $75 where I had sold (thankgoodness) down to $11 so I had always assumed that the valuation would now be ridiculously cheap - imagine my surpise when I compared csv just now and TMPW (nasdaq reference) and I was quite surprised to find they both have very similar levels of sales tmpw $1.2bn vs csv $1bn (297*2*1.6) both have similar levels of operational losses and tmpw has a market cap = $1.25bn!

On the same basis (i.e. same sales/mkt cap ration) csv would have a share price of over £3!
This typifies the air of unreality in these markets how can 2 companies that both operate in the same markets (csv has its main operations in Uk/USA as does TMPW) have the same operating performance give or take (and in my view csv earnings may be more stable as they not exposed to the high end executive markets in the city etc that tmpw have) and have valuations that are out by not just 50% but the difference between £3 and 8p i.e. c3,800% ...... how a layman can make sense of this I do not know - can both valuations be right and it is correct to be long on both, or short on tmpw and long on csv, or just long on csv as I am.

For those who have no links to TMPW this note may make no effect but I have to say I was fairly gobsmacked when the relative cheapness of csv stands (given that I had thought tmpw had been shorted to "oblivion") out in this contrast and makes me feel a lot more confident in my holding for the new year. If there are any discussions regarding any corporate actions here when people on this board have joked in prior posts of not wanting to sell out sub 50p perhaps this gives more of a context why they might say that....


PS this is not meant as investment advice re tmp etc


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