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I have 23 consecutive profitable trades of 15% or better. How is this possible? Every day there are hundreds of stocks setting new highs, no matter what happens in the overall market. Many of these stocks are still at very reasonable valuations. Afraid of buying stocks at their highs? Think of it this way: a new high is really a future floor for companies with solid financial underpinnings. Quantitative momentum modeling makes it easy to identify stocks that can continue this upward momentum trend. Why does this happen? It's really very simple..ask me about what investors and cows have in common. I am $$$ MR. MARKET $$$. I AM HUGE!!! Bring me your finest meats and cheeses. You can join in on the fun. Register for free and you'll be able to post messages on this forum and also receive emails when $$$ MR. MARKET $$$ makes his own trades. ($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
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  1. #1

    Default PAYC ==> The Raised Bed Winner!

    Not many of you will have trouble recognizing this man:



    That’s right…it’s the man in black, Johnny Cash. He’s known for penning such great works as Ring of Fire and I Walk the Line. This man’s influence is known far and wide and many Americans have incorporated his songs into their lives.

    Not many people at all recognize this man:



    That’s right…it’s not Johnny Cash. It’s another guy named, ironically, Johnny Paycheck. His most famous recording was not written by him but it’s an idiotic song called, Take This Job and Shove It. Think of the creative genius! Most likely more people have left their jobs at supermarkets and restaurant establishments because of this song. Because of Johnny Paycheck, we’re all paying more for groceries.
    Whether it’s cash or check, we all want to get paid and companies don’t know how to pay us anymore unless they have software to help them. Today I bought Paycom Software, Inc. (PAYC) at 256.56. I will sell it in 4 to 6 weeks at 296.84. Here’s why I like PAYC:



    Geez if you look at this chart for the last 6 or 7 months it has been on a relentless climb. The stock has been up 72% over the last 12 months while the rest of the market has been basically flat. Wonder why? The revenue is growing 31% YOY and earnings are up 36% YOY. This of course looks mighty attractive until you have to swallow the PE of 92. Yes…this stock isn’t cheap but I think the best is yet to come.
    Paycom Software, Inc. provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking. Its HCM solution also provides payroll applications comprising payroll and tax management, Paycom pay, expense management, garnishment management, mileage tracker/fixed and variable rates, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, executive dashboard, and Paycom learning and course content. In addition, the company's HCM solution offers HR management applications, which comprise document and task management, government and compliance, benefits administration/benefits to carrier, COBRA administration, personnel action forms, surveys, and affordable care act applications. Paycom Software, Inc. was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.

    That’s right…it’s 1984 all over again and what Paycom does is enable its customers to spy on their employees from cradle to grave 24/7. I mean let’s face it…every good manager knows that employees are there to steal you blind or look at porn all day. How do they know this? Because every good manager is trying to steal the shareholders blind. Everyone steals. George “The Animal” Steele.
    Paycom is a cloud-based payroll management solution that enables organizations to automate payroll processes. The platform stores all employee-related data in one place and ensures that changes are reflected in real-time across the system. The product also provides an in-person client specialist to each customer who requests help.

    Paycom is able to create reports that can be imported to other accounting solutions. The expense management feature automates the expense reimbursement process and defines rules, categories and parameters for employees to monitor claims. Employees can also upload bills related to expenses by using a self-service portal available within the tool. No more cheating on your expense reports…sorry sales guys…you’ll have to pay for your own booze from now on.

    Paycom is able to debit payroll taxes on time, depositing them on or before due dates and handles all other payroll tax filings. Other features offered by the solution include garnishment management, online payroll processing and payroll analytics. Garnishment management? Good bye dead beat Daddies.

    Let’s hear from the users of the software…if the customers don’t like it, there’s no need to buy this stock with a PE of 92:

    “Paycom is a wonderful tool for small to medium organizations looking for a single system to manage Human Resources related tasks and processes. Employees spend less time managing their time, information, and benefits which results in more productivity. Performance management has become more visible organization-wide.” - Ricky

    “Paycom is the one stop shop for HRIS systems. From posting job opportunities, tracking applicants through the interview process, onboarding, and the entire employee life cycle, Paycom has it all. Just when you think it can't get better they do a monthly release that makes you go "wow!". They are innovative and always looking for ways to make the HR professional's life easier!” - Anonymous

    “The ease of use is the single best quality of this company. My payroll processing time has never been as effiecent or organized in my 18 years of having my business. I am on the site weekly and am very glad that I can process my payroll in a few minutes. I have w2 employees and 1099 contractors that I pay through my company. Having a tool that is easy saves me time and thus saves me money. The greatest asset that Paycom offers is their friendly and knowledgeable staff. I would be lost without my specialist. She is amazing. Once the payroll is complete, the reports are very easy to use and run so that I can keep track of all my expenses.” - Chad

    Now I don’t know anything about software but if this computer program is good enough for Ricky, Anonymous and Chad then it would probably be good enough for me. By the way, Chad is the CEO’s name. But never mind that. The bottom line is, this stuff sells like crazy.

    Look at the revenue growth:
    2015 – $225M
    2016 - $329M
    2017 - $433M
    2018 - $566M


    And of course its earnings:
    2015 – $21M
    2016 - $70M
    2017 - $123M
    2018 - $137M


    This is very powerful financial performance. PAYC has an operating margin of 30% and a Return on Equity of 41%. It’s simply a relentless machine right now and its building some scale so that it will soon be marketing to the big boys. They are bolstering their marketing and R&D budgets. PAYC is a disruptor in the payroll industry with more than 23,500 clients and targets businesses that employ 50 to 5,000 people. So what of all this recession talk and is it too late to jump in? Poppycock. After being in business for more than two decades, Richison said his company weathered the recessions last decade. “As a growth company, it doesn’t impact us as much as it might if we were more at a steady state,” he said. Among 3 ANAL-ysts covering Paycom , 2 have Buy rating, 0 Sell and 1 Hold. Therefore 67% are positive.
    Paycom has focused on getting customers to adopt its "100% employee engagement" target. That means all changes to data in a company's human resources database are completed by employees. Through the employee self-service initiative, Paycom aims to improve customer retention. Retention increased to 92% in 2018, up from 91% the prior year. So basically once Paycom makes a sale, they have a customer for life..year after year after year. Every new sale goes to the bottom line. You don’t worry about losing customers. The strategy is brilliant because if the employees are making the data changes they are going to be less likely to want new software because of their vested man hours into the system itself.

    Last month, Paycom Software reported second-quarter profit and revenue that beat ANAL-yst estimates. Paycom said adjusted earnings were 75 cents a share, up 27% from a year earlier, with revenue rising 31% to $169.3 million. A year earlier, Paycom earned 59 cents a share on sales of $129 million. ANAL-ysts expected Paycom earnings of 70 cents on sales of $164 million. For the September quarter, Paycom said it expects revenue of $171 million. That topped analyst estimates of $168.2 million.

    Paycom is one of the fastest-growing companies within its competitive space. For the second consecutive year, it was ranked among the top five of the fastest-growing company on Fortune magazine's 2018 100 Fastest-Growing Companies. Paycom CEO Chad Richison founded Paycom in 1998, and runs the company from Oklahoma City, near where he was born. With more than 2,000 people on staff in Oklahoma, Paycom is one of the largest employers in the state. The company competes with ADP, where Richison previously worked. That means he took all of ADP’s good ideas. Why not? The demand for better business analytics and automatically populated reports is something that executives and HR professionals have needed for some time and Paycom's Push Reporting feature provides the industry with a smart process and an automated solution that advances how the enterprise can better leverage employee data from all parts of the employment life cycle.

    The company is gaining from solid growth in recurring revenues, backed by new business wins and anincreased existing clientele. A strong spurt in sales can be attributed to its employee usage strategy, sales efforts and investments. The launch of differentiated product offering, Direct Data Exchange, for all Paycom Software clients in the first quarter is also boosting client additions. Remember, this company has been building its rep for over 20 years but now they have the power of cloud computing which is going to make their product super attractive.

    Buying PAYC is like jumping on top of a wave…no doubt whatsoever. If this whole market crashes, the price of PAYC is going to take an enormous dump. If we hit a recession and companies pull in their horns and stop spending money on software, PAYC will take another enormous dump. Having said all that, I’m confident that PAYC will show great earnings for the next couple of quarters and, having said that, it will hit a 15% gain somewhere within those 6 months.

    So Johnny Paycheck…meet $$$MR. MARKET$$$ who will be cashing his next paycheck with Paycom!

    I am HUGE!!!

    $$$MR. MARKET$$$
    Last edited by mrmarket; Yesterday at 12:25 PM.
    =============================

    I am HUGE! Bring me your finest meats and cheeses.

    - $$$MR. MARKET$$$

  2. #2
    Join Date
    Oct 2003
    Location
    Hamilton MA
    Posts
    1,966

    Default

    Good luck, Large Person.

  3. #3
    Join Date
    Jun 2009
    Location
    NJ
    Posts
    565

    Default

    I really want to take my job and shove it - and joined the HUGE one and entered into a position in PAYC this morning!

    Keep on keepin' on Mr. Market!

  4. #4
    Join Date
    Sep 2003
    Posts
    4,748

    Default

    Quote Originally Posted by tiedyed1 View Post
    I really want to take my job and shove it - and joined the HUGE one and entered into a position in PAYC this morning!

    Keep on keepin' on Mr. Market!
    I agree, and this stock will help us both achieve that goal, TieD1! I'm joining in with the wise ones and buying here at $250.... This is a fantastic pick, and we should see the $300s with this one in no time at all!

  5. #5
    Join Date
    Dec 2004
    Posts
    526

    Default

    Yessssss Mr Market is huuuuuuuuuuuuuge!!!!!!!

  6. #6

    Default

    these high PE stocks are fun, aren't they?
    =============================

    I am HUGE! Bring me your finest meats and cheeses.

    - $$$MR. MARKET$$$

  7. #7
    Join Date
    Sep 2003
    Location
    Nijmegen, NL
    Posts
    2,201

    Default

    I finally had the time to enter. 210ish ...
    My Investopedia portfolio
    (You need to have a (free) Investopedia or Facebook login, sorry!)

  8. #8
    Join Date
    Sep 2003
    Posts
    4,748

    Default

    I seeeeeees! Up over $260 now, and the target is in sight!

  9. #9
    Join Date
    Nov 2013
    Location
    Logandale, NV
    Posts
    89

    Default

    Nice gains Karel, I'm beating myself up for not buying at this point.

  10. #10
    Join Date
    Sep 2003
    Location
    Nijmegen, NL
    Posts
    2,201

    Default

    Quote Originally Posted by sixfeetfour View Post
    Nice gains Karel, I'm beating myself up for not buying at this point.
    Sure, I like it, but it is nothing like a sure thing, of course. I was out of the running for some time and that was the time I came back. Pure coincidence.
    My Investopedia portfolio
    (You need to have a (free) Investopedia or Facebook login, sorry!)

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