If ECHO is trading at $18, this stock should be under $12
In 18 months, XPO can only hope and pray that their operations are in line where ECHO is operating (profitably) at this very moment as we speak. And yet ECHO currently trades for 0.5 X sales. If XPO can pull off $1 billion revenue by 2014, and turn a profit by some trick or magic, then they will be blessed with a whopping valuation of 0.5 X sales (or $500 million market cap). Considering they have 43 million DILUTED shares, that amounts to a stock price of $11.60 in 2014. And that's if everything goes just exactly perfectly as planned. Good luck guys.