check, check, over
Petah, glad you are back. What do you make of the acquisition timing? is this to gain as much momentum as possible, because quarterly numbers will be really bad? could they just not hold off execution, until hours before next call? Is this to make a splash at investor conferences underway in Florida? Or, are they just now actually managing their business and have a pipeline that might begin to trickle more frequently that before bad quarterly results are announced?
Hi trans, i don't know what to make of the air brokerage acquisition. That compnay is currently an outsource partner of XPO so this acquisiiton is more about expediency I guess.
The current market cap is 43.1 shares outstanding X $18.15/share = $782 million. This implies that the market is pricing in a forward revenue run rate of around $1.5 billion/year (i.e., p/s ratio around 0.5, same as ECHO). The current annual run rate is $500 million. Jacobs said today they intend to add $250 million revenue through acquisitions in 2013. That means cold starts need to add $500 million in revenue in 2013. All that speculative growth, just to justify the current market cap of $782 million. Go figure.