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US Service Sector Expands at Faster Pace in October

Service Sector

The Institute for Supply Management (ISM) reported that its service index rose to 55.4 percent in October, 1 percentage point higher than the 54.4 percent registered in September. This marks the 46th consecutive month of growth. A reading above 50 indicates the sector is expanding. The Non-Manufacturing Business Activity Index increased to 59.7 percent, which is 4.6 percentage points higher than the 55.1 percent reported in September, reflecting growth for the 51st consecutive month. The only negative in the report saw the New Orders Index decline 2.8 percentage points to 56.8 percent.

Kerchunker Profile: Starbucks Aims to Dominate Tea

Starbucks is making waves as it opened its first Teavana Fine Teas + Tea Bar on Madison Ave in New York City last week. Should investors take notice? A most resounding yes! Starbucks has transformed the way Americans drink coffee and you have to listen closely when CEO Howard Shultz states, “We'll do for tea what we've done for coffee.”

Oil Services Kerchunker Core Laboratories Reports Record Results.

On Wednesday, Core Laboratories reported record 3rd quarter results as new technology helped set all-time quarterly highs for EPS, net income and revenue. Its business continues to kerchunk, kerchunk, kerchunk. What makes Core Lab a great service company? It targets the more stable, less volatile production and production enhancement component of the oil companies’ budget. This makes results less cyclical and much more predicable than most energy investments. The proof is in the pudding. Over the last 10 years, sales growth has averaged 10% per annum while earnings have grown by over 35% per annum.

The Rise of The Recurring Revenue Portfolio

On the heels of my recent post “What Are Kerchunker Companies? 5 Reasons Why You Should Like Them,” please watch this recent CNBC interview of Mike Smerklo, Chairman and CEO of ServiceSource. Many high tech companies are realizing what IBM did 20 years ago. The information technology industry can rapidly become commoditized so IBM determined that the company needed to shift its portfolio to a more balanced mix of high-value offerings. That meant a transition away from products (hardware) and growing its services and software businesses. Today, the cloud is enabling companies to offer Software as a Service (SaaS) which often boasts better customer retention and more recurring revenue.

What Are Kerchunker Companies? 5 Reasons Why You Should Like Them

“”What the heck is a kerchunkerÂ® company?”” you ask. Kerchunker is a term trademarked by Runnymede professionals to describe service sector companies that are steady and often have recurring revenue models. Hopefully, each quarter and each year, they grow… kerchunk, kerchunk, kerchunk!

US Service Sector Index Hits Highest Level Since It Was Created in 2008

The Institute for Supply Management (ISM) reported that its service index rose to 58.6 percent in August, 2.6 percentage points higher than the 56 percent registered in July. This marks the 44th consecutive month of growth and the highest reading since its inception in January 2008.