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Echo Global Logistics, Inc. Message Board

  • ziippitty ziippitty Apr 26, 2013 2:48 PM Flag

    Peter - and the PE is STILL at 34!

    even mighty CH Robinson is only at a PE of 16 telling me that ECHO can't be above an $8 stock even if it was priced at Robinson's mighty PE of 16. So ECHO should really be priced at $8 tops and probably more like $4 or $5 really. Right?

    Sentiment: Sell

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    • peter_norths_proctologist peter_norths_proctologist Apr 26, 2013 7:15 PM Flag

      The 2013 forward P/E for Ch Robinson is sitting around 19.

      If we apply that multiple to the low end of ECHO's earnings estimates for FY 2013, you get .78 x 19 = $14.82. And ECHO is supposedly growing faster than CHRW, so theoretically they desrve a higher P/E multiple. However, this management team is not reliable with their forecasts, as they constantly overpromise and underdeliver. And the market hates that. They will be in the penalty box a while for lowering 2013 estimates by so much. The market will brace for more downward revisions.

      PS: I hope you listened to me and waited until after the earnings release to buy this stock. You would have saved yourself 13% off the sale price in two days.

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