Impellam Group (165p) - Recovery under way!

Impellam group, the AIM listed provider of staffing solutions, outsourced services and management is rocketing away. Since the release of its interims on Friday 6th August 2010, it has increased from 96.5p to close at 165p on Friday 15th October (10 weeks) - a 70.98% gain.

 Is the rise set to continue? Well, consider the following points:

1. With a Turnover in excess of £1Bn, IPEL has a PSR of 0.06 (extremely low).
2. It has reduced its nebt debt by £30.4m to £39.2m (as at 2nd July 2010).
3. It had adjusted eps of 21.8p for the half year, which if we double to 43.6p (to get an idea of likely full year earnings), gives us a PE of about 3.78 (about one-third of its peer group).
4. Technicals look strong (particularly OBV).

Overall, we feel that this is one that could well double again within 12 months. As usual, DYOR!