18%

Buy - Price 24.11 on Feb. 12
by Garp Research

Administaff posted commendable unit and top-line growth...Given ASF's historical volatility, trading pattern, and the potential for further weakness in the U.S. economy, we wouldn't be surprised [if] the shares dip below 20. But historically, the time to build a position in ASF is when economic fears spike. In 4Q07, average paid work-site employees (WSEs) numbered 115,451, an 11% rise over 4Q06 and a 3% jump sequentially. Coupled with price and wage inflation, unit-growth drove revenue up 14% to $402 million. Gross profit increased 13% to $84 million...Gross margin was flat year-over-year at 21%...We estimate ASF will earn 43 cents a share in 1Q08 and $1.84 full year. We like Administaff because it caters to professionals (higher salaries)...Market-cap: $639 million.

morningstar rec

Avg. Absolute 1 Day % Chg on Earnings: 12.85%

From Barron's 4/30/07

Based on our forecast of high single-digit unit growth in 2007, and 11% [work-site employee/WSE] growth thereafter through 2009, coupled with our estimates of 3% annual growth in gross-profit-per-WSE, we find ASF shares attractive, trading at 12 times our out-year earnings-per-share estimate.

subprime auto loans

Good performance with bright future.