Axiom Management is a full-service staff recruitment, fulfillment, and human resources management company. Through its wholly-owned subsidiary, Coastal Employment, the Company provides services to clerical and technical companies, logistics providers, warehouses and light manufacturing businesses. Axiom also offers risk management services to address rising workers compensation costs and related expenses through its other subsidiary, Strategic Insurance Group (SIG).

The American Staffing Association estimates that the temporary staffing industry grew from a $64 billion industry in 2003 to $82 billion in 2005 and $87 billion in 2007. Staffing services are expected to be ranked among the highest industry growth rates over the next 25 years. Unlike other businesses, staffing services is relatively immune to economic cycles. The staffing industry is highly fragmented, consisting of a few large players and thousands of small companies generating between $5 million to $20 million in annualized revenues. The fragmented nature of the industry creates favorable acquisition opportunities for consolidators such as Axiom.

The analyst who completed the report concluded, “In all, Axiom has identified acquisition candidates that cumulative represent more than $67.5 million in annualized revenues. If the Company closes pending acquisitions and secures the additional $10 million in financing, we expect Axiom’s revenue run rate to quickly rise from an $18 million range this year to a $65 million range next year. We are initiating coverage of Axiom Staff Management with a Speculative Buy rating and a $3.48 price target, based on a 13 times multiple of projected 2008 net income.

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