Mar 21, 2007

[Call Centers] PeopleSupport's Stock Woes

PeopleSupport logoPeopleSupport, Inc., an LA-based contact center with majority of its operations in the Philippines has been taking a beating in the US stock market in recent weeks. Things started off on the wrong foot when their 4Q revenues, while higher than 4Q of 2005, were still lower than Wall Street expectations. This triggered a massive drop in stock price for the company from a high of about $22 per share before the announcement to a staggering low of around $13 per share.

Vonage logoThings go worse when it was announced last Friday that Vonage Holdings Corp. decided not to renew their long-standing contract with the business outsourcer, which accounts for a fair amount of their current business in the Philippines. This triggered a re-evaluation by financial analysts. Cowen & Co. downgraded PSPT shares to "Neutral" from "Outperform" that has lead to another drop in stock value to a low of approximately $11 per share. While the loss of revenue from the termination of the Vonage contact in May isn't that significant, it still caps expectations of their growth this year while the full impact of the pull-out is determined.

Now their stock price is on the rise as a lot of investors and analysts are seeing PSPT as a prime acquisition opportunity for some should anyone want to buy into call center operations in the Philippines.

You can monitor the rise (or fall) of PSPT stocks and others by using Google Finance, which offers interactive charts, correlations between critical price changes and news events, information about the company and comments from Google users also interested in this stock.


  1. vonage definitely pulled out of ps. i thought it was just a downsize. gosh. i feel so sorry for the vonage agents who were transferred to the other accounts. tsk, tsk.

  2. well it's the usual call center game of sorts - clients come and go. at least they still have jobs, which is a good thing.

    although it'll be inevitable that some will lose their jobs entirely.

  3. operations managers at PS was dilly dallying on thier jobs anyway from over-rated payouts to fales sales reports....specially in Canada....what goes around comes around!!!!

  4. well you certainly speak from personal observation and experience, hehe

    i did hear it was largely performance-related. shouldn't matter too much in the end - there will always be other campaigns.

  5. KARMA YAN sa PS!!!!

  6. the few people that I get to talk to from PS seem to think along these lines as well - why is that?