EmergingGrowth.com Special Report Kforce, Inc. Emerging Growth Short Side Stock Pick

  EmergingGrowth.com Special Report Kforce, Inc. Emerging Growth Short Side
                                  Stock Pick

  PR Newswire

  MIAMI, January 3, 2013

MIAMI, January 3, 2013 /PRNewswire/ --

EmergingGrowth.com, a leading digital financial media company, Reports on
Short Side Stock Pick Kforce, Inc.

Feature your company on EmergingGrowth.com. Visit EmergingGrowth.com to find
out how. 

When investing in the markets folks have to be conscious of the upside
potential of a security, and at the same time be able to accept when a stock
becomes overvalued. This is generally a difficult skill to acquire as most
folks look to invest in a company for the long-term, hoping for appreciation
over time. The retail investor who invests through their 401ks and other
defined contribution plans all buy and hope the fund will be worth more in the
future. The more astute investor and a bunch of hedge fund managers not only
look for hidden gems, but also invest (in other ways) their capital in
companies that are overvalued. 

David Einhorn, founder and president of Greenlight Capital has initiated a
bunch of short positions such as Allied Capital (NYSE: AFC), Lehman Brothers
and Green Mountain Coffee Roasters (NASDAQ: GMCR). The press usually pegs him
as a "destroyer of companies," but most of the time he is correct that the
company's stock is overpriced. When evaluating financial statements and
looking at the company's core operations and products, many managers believe
they can gauge whether future earnings are correctly priced into the stock.
When a company has an earnings potential shortfall or has a stock price that
has run up too far too fast, many managers will short the company's stock.
This seems to be the case with Kforce.

Kforce Inc (NASDAQ: KFRC) provides professional and technical staffing
services and solutions in the United States. It operates in five segments:
Technology, Finance and Accounting, Clinical Research, Health Information
Management, and Government Solutions. The stock is trading just above $14.50 a
share, with a 52-week range of $9.57 to $14.92. The company recently hit its
52-week high of $14.92 on December 28, and pulled back slightly. Less than a
couple of months ago the stock was trading as low as $10.32, but over the last
six weeks there has been a considerable move to the upside (about 29%).

The company announced earlier this quarter that a special dividend payout
before the New Year of $1.00 a share will be distributed, equating to a total
payout for Kforce of $36 million. This has been a common practice by many
companies due to the previous uncertainty surrounding the fiscal cliff, and
becoming more focused on the dividend tax that will be applied in 2013. It can
be viewed as a negative as some would argue that dividend is being pushed up
so that investors stay in the stock, and do not flee due to other reasons. On
the flip side a special dividend distribution may also be viewed as a company
rewarding its shareholders, and allowing them to avoid a potential dividend
tax hike. In the case of Kforce it appears that the former applies.

There has been an extreme amount of insider selling in the stock as of late,
which causes concern about the company's near-term performance. Ralph
Struzziero filed to sell 4,000 shares in December. Howard Sutter (Officer &
Director) sold 40,000 shares in December. Richard Cocchiaro filed to sell
364,399 shares in December. Despite the considerably strong insider selling,
the stock has appreciated during the month of December, a few dollars shy of
its five-year high of $17.55 on February 7, 2011.

Despite the environment for professional staffing viewed to be positive by the
company, its last earnings report was not stellar. Revenues from continuing
operations for the quarter ended September 30, 2012 were $270.2 million
compared to $274.1 million for the quarter ended June 30, 2012, a decrease of
1.4%. With outlook growing more uncertain due to many macroeconomic headwinds,
the company is expected to suffer at least for the first half of 2013. After
such a tremendous run to the upside, a grim outlook (as stated by the CE), and
strong insider selling, investors should look to sell short KFRC over the next
few months.

Heading into the fourth quarter 2012, the most shorted stocks were First Solar
(NASDAQ: FSLR), JC Penny (NYSE: JCP) and GameStop (NYSE: GME). Their short
interest vs. the public float was 47%, 40% and 36% respectively. 

About EmergingGrowth.com

By offering 100% original and unmatched content by the best financial
reporters, writers and bloggers in the business, EmergingGrowth.com is
emerging as a leading digital financial media portal. Its services provide
users, subscribers and advertisers with a variety of content and tools through
a range of online, social media, mobile and other mobile outlets.

Since its inception, EmergingGrowth.com has distinguished itself from other
financial media companies with its sly approach to reading between the lines
in order to locate that needle in the haystack. Sign up today to see what
EmergingGrowth.com has to offer.

NEW: Feature your company on EmergingGrowth.com. Find out how by filling out
our form at

Join our Linked in Group

Like us on Facebook


All information contained herein as well as on the EmergingGrowth.com website
is obtained from sources believed to be reliable but not guaranteed to be
accurate or all-inclusive. All material is for informational purposes only, is
only the opinion of EmergingGrowth.com and should not be construed as an offer
or solicitation to buy or sell securities. From time to time,
EmergingGrowth.com receives compensation by the companies profiled in its
emails, press releases or on its website. If any compensation is received it
appears fully detailed in a " special disclosure " on our website as well as
on any pages or emails where that company is located. Please check the "
Special Disclosure " link ( http://www.emerginggrowth.com/special-disclosure )
and consult an investment professional before investing in anything viewed
within. When EmergingGrowth.com receives shares for compensation it intends
to sell those shares. In addition, Please make sure you read and understand
the Terms of Use , Privacy Policy and the Disclosure posted on the
EmergingGrowth.com website. Always remember that investing in securities such
as the ones listed within are for high-risk tolerant individuals only and not
the general public. Whether you are an experienced investor or not, you should
always consult with a stockbroker, financial advisor, or similar before
purchasing or selling any securities viewed on any emails sent from
EmergingGrowth.com or its website.

Contact: EmergingGrowth.com, info@EmergingGrowth.com, +1-305-323-5687
Press spacebar to pause and continue. Press esc to stop.