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Arkansas Best Anonim Ortaklık Message Board

  • goalingyang goalingyang Jan 30, 2013 8:45 AM Flag

    Yes the results were awful......

    but if you were in labor negotations, wouldn't you want to show as big a loss as possible. Just a thought? Maybe they went expense happy and triggered more expenses this period to make their bottom line look worse then it actually is. After all revenueswere strong and cost structure didn't change all that much this period. Opinions?

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    • I think there are many things to be positive about in ABFS results. In a previous post I mentioned that the 4th quarter results would show the continuing need for union concessions to help ABFS compete with non union carriers. Well, that definitely happened! So what has changed? The catalyst that is going to drive cost cutting and a better stock price is still being negotiated. ABFS stockholder's should be very happy with the 20% non asset part of the company that produced $11.7 million in profits. The comment in the conference call of that part of the business now being 20% overall and moving to 25% of the business, was especially encouraging. Record revenues, great! Tonnage up 5-6% in January, great! Now the union needs to give the company back the keys and eliminate their horrible $19.4 million profit loss! Even though things look a little grim today on the stock price I believe this is another buying opportunity!

      Sentiment: Buy

      • 1 Reply to red777diamond
      • I agree Red and to bolster your comments, I'll add that Wall Street tends to over react on earnings releases. Today is no exception. Should shares be down 10%+ on this news? Not to my estimation. Providing an amicable labor agreement can be reached, I'd say we're at bargain levels currently.

        Cheers to you and fellow ABFS Longs,

        Sentiment: Buy