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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

AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest 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 not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

© 1999-2010 AllPennyStocks.com. All rights reserved. AllPennyStocks.com is not a Registered Broker/Dealer or Financial Advisor, nor do we hold ourselves out to be. All materials presented on our web site and individual reports released to the public through this web site, e-mail or any other means of transmission are not to be regarded as investment advice and are only for informative purposes. Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with any stock, companies we select to profile involve a degree of investment risk and volatility. Particularly Small-Caps and OTC-BB stocks. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any of our profiled companies. Past performance of our profiled stocks is not indicative of future results. The accuracy or completeness of the information on our web site or within our reports is only as reliable as the sources they were obtained from. The profile and opinions expressed herein are expressed as of the date the profile is posted on site and are subject to change without notice. No investor should assume that reliance on the views, opinions or recommendations contained herein will produce profitable results. AllPennyStocks.com may hold positions in securities mentioned herein, and may make purchases or sales in such securities featured on our web site or within our reports. In order to be in full compliance with the Securities Act of 1933, Section 17(b), AllPennyStocks.com will disclose in it's disclaimer, what, if any compensation was received for our efforts in researching, presenting and disseminating this information to our subscriber database and featuring the report on the AllPennyStocks.com web site. AllPennyStocks.com has been compensated six thousand dollars by the Company for its efforts in presenting the SSVE profile on its web site and distributing it to its database of subscribers as well as other services. AllPennyStocks.com may decide to purchase or sell shares on a voluntary basis in the open market before, during or after the profiling period of this report. As of the profile date, no shares have been sold. Information presented on our web site and within our reports contain "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as “expects’”, “will,” “anticipates,” “estimates, “believes,” or that by statements indicating certain actions “may,” “could,” or “might” occur.

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