QUICK ALERT
- 1. Will be increasing revenues going forward by over 100%
- 2. Trucking company that remained profitable during peak oil
- 3. Near a chart breakout
- 4. Recent lower oil should increase margins going forward for all truckers
FULL REPORT (8-16-2008)
The transportation sector is once again in demand after months of selling pressure due to high fuel costs. Major airline stocks are up over 100% from their year lows as both value funds and shorts buy up shares. The trucking sector is in the midst of a similar move with stocks like YRCW, HTLD, JBHT, ODFL, WERN, etc... rising in price as oil comes down.
We have identified EXPRESS-1 EXPEDITED (AMEX: XPO) as a unique opportunity in this sector. Express-1 Expedited Solutions, Inc., through its subsidiaries, provides transportation and logistics services in the United States, Canada, and Mexico. It operates in four segments: Express-1, Express-1 Dedicated, Concert Group Logistics, and Bounce Logistics.
XPO has been consistently profitable over the last several quarters while at the same time growing their foot-print and revenue stream. We make a specific note of their latest quarterly results:
123% increase in revenue during the second quarter of 2008 versus the same period in 2007. Revenues grew dramatically to $30.9 million during the quarter, compared to $13.8 million during the same period in the prior year. The January 2008 acquisition of Concert Group Logistics contributed $14.4 million of this increase. During the quarter, the Company’s Express-1 operations expanded revenues by 16% over the same period in 2007. The Company’s other business units, Express-1 Dedicated and Bounce Logistics also contributed to the record year-over-year increase in revenues. with a current market cap of only $41 million, this now gives XPO a "minimum" ratio of price-to-sales of 0.5 with a forward figure of 0.35 and points to an extreme value.
XPO has effectively doubled their revenue stream going forward and this indicates revenue beats will continue throughout the remainder of the year and well into 2009. Note that these results were during a time of increasing oil prices as well.
The current price of $1.30 is above its 200 dma and very close to its 50 dma.
XPO homepage
SEC Filings for XPO
General XPO statistics
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