With yesterday's announcement that the company is delivering growth as predicted and with more announcements to come, price should be going up, up, up. Could be that the short holders are trying to torpedo the price so they can cover without driving the price up through the roof. Covering four million shares must raise the price with normal daily volume only 70,000. Why else 325 traded at $5.99 pre market yesterday when the opening price was $6.27.
I can't imagine a safer and more stable business than long term contracts for transporting children to school using energy efficient buses, having the additional ability to extend the life of buses plus getting contracts to operate buses owned by municipalities.
I would think that financing costs for municipalities are much lower than for a public corporation. If they are, this structure is a real stroke of management genius as it lowers the operating costs for the schools while they have the advantage of a professionally managed bus fleet.
Denis Gallagher has over 30 years of bus management experience in his blood not to mention the genes he inherited from his father and grandfather who were in the school bus business too. Shouldn't take too long until the financial markets recognize competence.
Have to add my two cents in here. This stock has been "under attack" from a couple of posters on the SA boards for quite some time now. One really has to wonder if there is not some agenda in play. I also subscribe to high yield international newsletter (this is not a plug, it's okay, better than most of the garbage you find out there on SA and the street for sure, and price is reasonable but it's not perfect - then who is right?) and HYI has been spot on with this particular stock. They also believe the SA writers have an agenda and do buy recommendations anytime the stock approaches 6 bucks, which has been a winning strategy for accumulating. Have held this monthly payor for well over a year and have not been disappointed, but it is a different animal, almost like a reit in many ways. You need to look at it's valuation in that light. Accumulate on dips and look at this as an 8 or 9% return vehicle, not as a capital appreciation or growth story. Not saying they cannot grow, but I personally am happy with this model of them returning most of the profits to shareholders via the divvy...If you are looking for a growth story this rather boring stock is not what you want. Yesterday's announcement was rather timely, as it counteracts a number of supposed negatives by a recent SA article on STB.