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American Company Spotlight

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SupportSave Solutions, Inc. Website:
Click Here |
Information As Of
January 29,
2010 |
| Exchange:
OTCBB |
Market Cap:
13.7
Million |
| Outstanding Shares:
13.2
Million |
52 Low / High:
$0.11 / $1.35 |
|
Originally Profiled on January
13, 2010:
$0.93
Profile Updated on January
29, 2010:
$1.04 |
SSVE Recent Stock Quote and News:
Click Here |
"Of
the 25+ million businesses in the U.S., approximately 24
million have fewer than 500 employees and represent a
multibillion dollar underserved BPO market. Most BPO providers
tend to focus on the top 1,000 businesses with more than 1,000
employees. SupportSave is carving out a profitable niche
serving smaller mid-sized U.S. businesses."
Overview
SupportSave Solutions is the fastest growing publicly traded Business Process
Outsourcing (BPO) provider with 96% Year over Year growth in its latest fiscal
year ended May 31, 2009. SupportSave offers low-cost, high quality outsourced
customer service, technical support and back-office support to businesses of any
size. With Operations in both the US and The Philippines, the
Company provides full-time dedicated agents
from just $5 per hour.
Investment Highlights
- Robust Revenue Growth. The
Company just announced last week more impressive quarterly
financials, in fact the Company has been booming since 2007
with revenues increasing from about $100,000 a quarter in
August 2007 to over $950,000 in revenues in this latest
quarter.
- Record Revenues In Most Recent
Quarter. The company posted record earnings of $328,834
on revenues of $954,375 as compared to earnings of $13,381
on revenues of $393,648 for the same period last year.
Revenue amounts are net after consideration for returns and
allowances which decreased to $3,091 from $18,206 for the
same period last year. This record revenue growth amounted
to a 142% increase in revenue, compared to the three months
ended November 30, 2008.
- Economic Slowdown Does Not Impede
Growth For Company. SupportSave believes that the
current economic slowdown actually presents growth
opportunities since small and medium-sized businesses will
be looking for ways to reduce costs through business process
outsourcing.
- Services Provided For Less Than
Competitors. SupportSave’s Philippine operations
are located in Cebu (outside the
central areas of the Philippines). Most
competitors are located in Manila, which because of
the high volume of call centers is
nearing saturation in terms of
labor supply. Because of improved labor costs,
SupportSave is able to price its services at a
65%-75% discount to competitors.
- Speculative Buy Rating From Beacon
Equity Research. SupportSave Solutions Inc.
(SSVE) has received a Speculative Buy rating with a price
target of $2.09 by Beacon Analyst, Lisa Springer, CFA.
- Western Country Standards.
SSVE’s workers are supervised by American managers,
who work on-site at the Company’s facilities in the
Philippines. The combination of American managers and
Philippine workers ensures service quality comparable to
Western country standards at a much more affordable price.
- BPO Market Rapidly Growing In
Philippines. The BPO market in the Philippines
has been growing 40%-60% annually, fueled by the country’s
large numbers of English-speaking, IT-trained workers
available at low costs. This market has grown from less than
$150 million in 2001 to more than $5 billion in 2007 and is
projected to reach between $13 billion and $16 billion by
2010.
- Worldwide Explosive Growth For BPO
Market. The offshore BPO market is forecast to
grow from $6.4 billion in 2005 to $42.9 billion in 2009.
According to Gartner Research, the customer contact
services, finance, accounting and human resources segments
will experience the most growth. The current global economic
slowdown may provide an impetus to offshore BPO market
growth as companies search for ways to increase efficiency.
Profile
SupportSave Solutions Inc. provides both onshore and
off-shore business process outsourcing (BPO) services to
clients in the travel & hospitality, technology, financial
services, retail and telecommunications industries. The
company’s outsourcing center in the Philippines meets the
needs of small and mid-sized businesses, offering a more
affordable solution with services priced at a 65% to 75%
discount compared to most Indian and other Filipino BPOs.
The company offers the services of full-time dedicated
representatives at $897 per head per month, or $5.18 per hour
which includes telephone
costs, hardware, software and taxes. Service rates are
moderately higher for medical
workers, legal professionals, engineers and other specialty
professionals. SupportSave Solutions utilizes a
“Flat-Rate-Per-Month” service model to make outsourcing
affordable for small businesses, but eliminates default risk
by requiring its clients to pre-pay for monthly service. SSVE
facilities operate 24/7, providing the flexibility to support
a wide variety of client businesses.
The Company provides services on a pre-paid basis, meaning
payment is due immediately on the start date of
the hired worker. In cases where services are
terminated during the month, SSVE refunds a pro-rated amount
to the client. Payment up-front reduces the Company’s
business risk, creates a predictable cash flow stream and
allows SSVE to earn interest on client payments.
SSVE’s workers are supervised by American managers, who work
on-site at the Company’s facilities in the Philippines.
The combination of American managers and Philippine
workers ensures service quality comparable to
Western country standards at a much more affordable
price.
SSVE Provides a client control panel that gives full
visibility on the productity of the agent status, mouse clicks
and keystrokes, control of agents desktop, and full phone and
call queue stats. Access to the Company’s eight camera
full-color CCTV system for online viewing is available through
www.OutsourcedEmployee.com/live.php. (username:
supportsave / password:
guest)
With strong underlying growth in the BPO market,
competitive positioning as a low-cost leader and a full range
of services, SupportSave Solutions is well positioned for
revenue and earnings growth. With strong underlying growth in the
BPO market, competitive positioning as a low-cost leader and a
full range of services, SupportSave Solutions is well
positioned for revenue and earnings growth.
It seems as though the Company has
thought of everything when it comes to "Westernizing" offshore
workers, and the Company's clients seem to believe that as
well. The Company just announced last week more impressive
quarterly financials, in fact the Company has been booming
since 2007 with revenues increasing from about $100,000 a
quarter in August 2007 to over $950,000 in revenues in this
latest quarter. The company posted record earnings of $328,834
on revenues of $954,375 as compared to earnings of $13,381 on
revenues of $393,648 for the same period last year. Revenue
amounts are net after consideration for returns and allowances
which decreased to $3,091 from $18,206 for the same period
last year. This record revenue growth amounted to a 142%
increase in revenue, compared to the three months ended
November 30, 2008.
The CEO of SupportSave had the following
comments to make about the latest quarterly numbers. "These
results represent a major inflection point in the evolution of
our company," says Christopher Johns, President and CEO of
SupportSave. "When you consider that not only has our revenue
grown to over two times what it was last year, it has also
increased by 60% since just last quarter, it becomes clear
just how fast our company is expanding.
"As you can see our margins are increasing, which is
meaningful because of what it says about the business: what's
happening is that we have extended our reach to such a
sizeable client base that we are starting to reap the benefits
of repeat business without any extra marketing effort. It also
suggests that we are getting better capacity utilization."
"Our customers are happy with the service we are providing,
which means they are increasing the number of representatives
on their service team and extending their contracts. In simple
terms, we are helping our clients grow their businesses by
giving them more value for their money, which in turn is
allowing us to grow as well. This has been the vision of the
company from day one, and it is exciting to see it take hold,
and more importantly, impact our bottom line.
"We also were notified by three of our largest clients that
they will be ramping another 70 agents during the month of
January, so there is a lot of growth in the pipeline, our
propects couldn't be brighter," added Johns.
Not only are the above points impressive
enough, but the Company also boasts a strong balance sheet
with over $1.1Million in cash on hand and zero debt. The
Company has a history of share repurchase programs, in fact
they purchased over 300,000 shares last year alone. Another
factor that differentiates SupportSave from other micro-cap
Companies is that they keep share dilution to a minimum. Since
inception over 2.5 years ago, the Company has only added 1.9
Million shares into the market from their starting point of
11.3Million shares outstanding to the current figure of 13.2
Million shares outstanding. Lastly, even though the Company
has had and continues to have strong margins and is
profitable, the founders have decided to keep their salaries
very low by industry standards.
SupportSave believes that the current
economic slowdown actually presents growth opportunities since
small and medium-sized businesses will be looking for ways to
reduce costs through business process outsourcing. Their
quarterly numbers certainly are indicating that the Company is
correct in that assumption.
BPO providers compete mainly on cost and quality of services.
Companies compete for a finite labor pool consisting of
skilled workers possessing strong customer interaction and IT
skills who are also fluent in English. SupportSave has reached
a size that allows it to compete more effectively and
economically with other companies in the industry, allowing it
to attract talent, and to meet customer demands.
The offshore BPO market is forecast to grow from $6.4
billion in 2005 to $42.9 billion in
2009. According to Gartner Research, the
customer contact services, finance, accounting and
human resources segments will
experience the most growth. The current
global economic slowdown may provide an impetus to
offshore BPO market growth as
companies search for ways to increase
efficiency. At present, the Philippines market ranks
third in outsourcing revenues behind
India and China. However, many analysts
think the Philippines market is poised for several
years of hyper-growth, and point to
the migration of Indian call centers
to the Philippines as evidence of this market’ strong
competitive positioning.
SSVE has established BPO operations at Cebu, located outside
the central areas of the Philippines. This location is
a competitive advantage since most competitors have
established call centers in Manila;
because of the high volume of call centers in the area, the
metro market is nearing a saturation
point in terms of labor supply. The Philippines is emerging as
a globally preferred destination for
voice-based or front office, offshore services. The BPO market
in the Philippines has been growing 40%-60%
annually, fueled by the country’s large numbers of
English-speaking, IT-trained workers available at low costs.
This market has grown from less than $150 million in
2001 to more than $5 billion in 2007 and is projected to
reach between $13 billion and $16 billion by 2010. In
addition, the country’s BPO workforce is expected to increase
from the current 200,000 workers to 500,000 workers by
2010. Analysts expect the Philippines to capture
a 10% share of the global BPO market by 2010, up from
5% presently. The Philippines ranks fourth globally in
terms of available knowledge workers, and has the third
largest English-speaking population. Literacy rates at
around 93% are similar to many developed countries. The
Philippines also has a well-developed telecommunication
network and utility infrastructure, essential for BPO
market growth.
The Philippines BPO market has been growing 40%-60% annually
in recent years. Revenues generated
from Philippine BPO services rose to
approximately $5 billion in 2007 from less than $150 million
six years earlier. According to the
Business Process Outsourcing Association of the Philippines
(BPAP), the country’s BPO market is
expected to comprise 10% of the global BPO market by 2010, up
from 5% market share currently. Philippine
BPO industry revenues are projected to nearly triple,
reaching between $13 billion and $16 billion by 2010. The
number of BPO staffers in the Philippines is forecast
to rise from 200,000 today to 500,000 by 2010. According
to BPAP, the market’s robust growth is attributable to
competitive pricing. Philippine BPO vendors can provide
30%-40% estimated savings for their foreign clients.
The Philippine BPO market ranks third in revenues behind India
and China. With literacy rates at about 93%, the
Philippines has an educated labor pool competitive with
that of many developed countries. With 29 million skilled
workers, the Philippines ranks fourth in the world in terms of
the number of available knowledge
workers. The Philippines also has the world’s third largest
English-speaking population, making
communication barriers with American customers virtually
non-existent.
Looking at the stock from a technical
standpoint, its clear to see that the stock price is following
the overall explosive growth the Company is experiencing
fundamentally. In the last few months, the stock has risen
from about $0.40 cents to today's close of $0.93, representing
a 130%+ increase. While that is a nice return for existing
investors, given the recent record revenues and a very
positive outlook for future revenue growth, the Company may
continue to be seen by many as an undervalued gem. The Company
experienced a Santa Clause rally towards the end of December
as it shot up from the 50 cent range to over one dollar per
share. Since then, the stock has remained around that level
and building a new trading base.
While most technical indicators point to
a solid bull run for the stock since the middle of December,
one big important point to make is due to the relative small
liquidity, technical indicators are a bit less reliable than
with very liquid stocks. Most indicators are pointing to the
continuation of the bull run, and this consolidation period is
healthy for the stock. With the major announcement made
after the bell today, it could be seen as the catalyst for
another upward movement in the stock price. While volume for
this stock is quite low, it is refreshing to see that even a
little bit of extra volume drives this stock significantly
higher. With the Company's explosive growth, it will only be a
matter of time before investors find out about this hidden gem
and at that time, all bets are off on where the stock price
could head.
While the stock is doing quite well, we
always encourage our investors to protect themselves against
any potential downward price changes with a stop-loss. Looking
at the chart, we see plenty of support in the mid-60 cent
range, and would encourage investors to put stop losses
somewhere in that range. As always, these are only our
interpretations of SSVE's chart, we strive to give you all the
information we can and always encourage our investors to do
their own due diligence and consult with a financial advisor
before making any trading decisions.
SupportSave Solutions, Inc. (OTCBB:SSVE)
has been on a tear for the last three years, growing by leaps
and bounds and their financials are an indication of that.
With the BPO business booming, SSVE has carved out a niche for
themselves and with leadership from management, the Company
sees no slowdown in business on the horizon. As a result of
the Company's exciting fundamental prospects, booming industry
and positive news announcement made tonight,
AllPennyStocks.com has decided to list SSVE as our latest U.S.
Company Spotlight.
SupportSave
History
In November 2004, SupportSave Solutions was founded to meet
the needs of Small and Mid-Sized Businesses.
The Company's founders strongly
believed that the trend of outsourcing should not only benefit
Fortune 1000 companies. They set out
to create a business model that, for the first time, made
outsourcing affordable to businesses of any size, and
they have successfully done just
that.
SupportSave management identified
the Philippines as the most suitable destination for
their services because of the strong
language skills, minimal accent and affinity for American
culture. The Company creates
jobs and opportunities for many
people while helping businesses increase productivity and
respond to the needs of their customers more efficiently.
SupportSave's clients are growing
their businesses and hiring more U.S.-based employees as a
result. Many large companies agree; even Indian outsourcing
firms are arriving at the shores of the Philippines in search
of better support services.
In June 2007, SupportSave Solutions ceased operations and
SupportSave Solutions, Inc. (a Nevada corporation) acquired
all tangible assets and assumed operations seamlessly without
ANY service disruption. Shortly thereafter in July 2007,
SupportSave Solutions, Inc's registration statement was
declared effective by the US Securities and Exchange
Commission, making SupportSave a Publicly Traded company.
The Company now trades
on the Over-the-counter Bulletin
Board (OTC BB) under the symbol "SSVE".
The Company provides
offshore business process outsourcing, or BPO services, from
their 410-seat, 14,000 sq. ft.
outsourcing center in the Philippines.
Their facilities feature an on-site American management
team, fully redundant voice and data links to the US,
enterprise grade network infrastructure, redundant generator
sets, and all of the features of a much larger provider
without the larger cost.
Why Outsource?
There a number of possible benefits from
outsourcing. At a business level these include reduced
operating costs, productivity and profitability gains, the
ability to provide better service at lower rates, competitive
gains, and the ability to concentrate on core competencies. At
the economy wide level they include lower inflation as a
result of lower costs, possible lower interest rates, greater
business and consumer spending, an increase in economic
activity, and more jobs created over the medium to long term.
Recent News and Press Releases
SupportSave Appoints Industry Leader Joseph S. Duryea as
President to Spearhead Next Phase of Growth
Marketwire (Tue, Jan 19)
SupportSave Announces $500k in Additional Annual Revenue as
Largest Client Adds 54 New Agents
Marketwire (Wed,
Jan 13)
SupportSave Solutions, Inc. (OTCBB: SSVE) Announces Record
Revenue Growth of 142% and Record Earnings of $0.025 per Share
for Its Fiscal Second Quarter Ended November 30, 2009
Marketwire (Mon, Jan 4)
SupportSave Announces Record Earnings for Its Fiscal First
Quarter
Marketwire (Thu, Oct 15)
SupportSave Granted Tax-Exempt Certification From Philippine
Economic Zone Authority
Marketwire (Wed, Sep 9)
SupportSave Reports Fiscal 2009 Financial Results
Marketwire (Tue, Sep 1)
SupportSave Featured in Internet Retailer Magazine
Marketwire (Mon, Jul 6)
SupportSave Solutions Shareholder Update -- Letter From the
CEO
Marketwire (Thu, Jun 25)
Management
Christopher Johns, CEO, founded the company in May
2007. Prior to assuming his current CEO role, he worked in
sales and management positions at other companies. From
January 2003 to November 2004, Mr. Johns managed the
operations of CallOnThe.Net, a subsidiary of World
Access International Inc., which provided calling solutions to
the global community and CheapTalk
Phone cards from Malaysia and Thailand. This business provided
telecommunications services in
developing markets in Asia, Africa and the Middle East. From
early 2001 to January 2003, Mr. Johns
managed an E-Commerce Website in Venezuela, which
focused on sales of “As Seen on TV” fitness products to the
worldwide market.
Aina Mae Dumlao-Johns has been the COO, corporate
secretary, and a member of the board of directors since
inception in May 2007. With her extensive experience as
a call center agent, Team Leader and Account Manager in the
Sales, Customer Service and Technical Support fields,
Ms. Dumlao oversees SupportSave's operations. She also heads
the Company's marketing team, using her degree in
Advertising. Ms. Dumlao has also been featured in several
publications such as the Entrepreneur Magazine. She has
a background in marketing and advertising. From June 2001
to May 2005, Ms. Dumlao-Johns was a student at the
University of the Philippines, Diliman.
Michael Palasick has been CFO of the Company since May
2008. He has extensive experience in banking and capital
markets and is the Principal of U.S. Refund Consulting
LLC, a mortgage consulting firm based in Denver, Colorado. Mr.
Palasick holds an MBA in Finance from the University of
Tampa.
Richard Halprin joined SupportSave Solutions in
September 2007. He is the Company’s general counsel and a
member of the board of directors
overseeing all non-securities related corporate legal matters.
He has been in private practice in
Troy, Michigan, for approximately 17 years and is a magistrate
of the 45B District Court (Oak Park, Michigan). Mr. Halprin
obtained an undergraduate degree from Michigan State
University and graduated Cum Laude from the University Of
Detroit School Of Law in 1989.
Contact
Corporate Office:
SupportSave Solutions Inc.
3450 Cahuenga Blvd West, Suite 409
Los Angeles, CA 90068
Telephone: (248) 430-4300 / (925) 304-4400
FAX: (206) 350-0106
E-mail:
info@supportsave.com /
sales@supportsave.com
FORWARD LOOKING STATEMENTS
This report includes forward-looking
statements that reflect SupportSave Solutions Inc. current
expectations about its future results, performance,
prospects and opportunities.
SupportSave Solutions Inc. has
tried to identify these forward-looking statements by using
words and phrases such as "may," "will," "expects,"
"anticipates," "believes," "intends," "estimates," "plan,"
"should," "typical," "preliminary," "we are confident" or
similar expressions. These forward-looking statements are
based on information currently available and are subject to
a number of risks, uncertainties and other factors that
could cause SupportSave Solutions Inc.'s actual results,
performance, prospects or opportunities to differ materially
from those expressed in, or implied by, these
forward-looking statements. These risks, uncertainties and
other factors include, without limitation, the Company's
growth expectations and ongoing funding requirements, and
specifically, the Company's growth prospects with scalable
customers, and those outlined above. Other risks include the
Company's limited operating history, the Company's history
of operating losses, consumers' acceptance, the Company's
use of licensed technologies, risk of increased competition,
the potential need for additional financing, the terms and
conditions of any financing that is consummated, the limited
trading market for the Company's securities, the possible
volatility of the Company's stock price, the concentration
of ownership, and the potential fluctuation in the Company's
operating results.
Disclaimer
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press releases. Information contained in this report was
extracted from current documents filed with the SEC, the
company web site and other publicly available sources deemed
reliable. For more information see our disclaimer section, a
link of which can be found on our web site. This document
contains forward-looking statements, particularly as related
to the business plans of the Company, within the meaning of
Section 27A of the Securities Act of 1933 and Sections 21E
of the Securities Exchange Act of 1934, and are subject to
the safe harbor created by these sections. Actual results
may differ materially from the Company's expectations and
estimates. This is an advertisement for
SupportSave Solutions Inc. The purpose of this advertisement, like any
advertising, is to provide coverage and awareness for the
company. The information provided in this advertisement is
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