This market is crazy. XPO grows revenues but still loses money and dilutes everyone by 50% but the stock rises 10% in one day after meh earnings. They have a market cap of almost $1,000,000,000. People keep buying I guess. I am not cut out for this LOL. Whatever happened to fundamentals like my good ol Dad taught me. Maybe XPO should have bought WhatsApp. It would not have surprised me. The stock would probably be at $100 today haha. This is just amazing though (although looking at Tesla and Facebook I should not be surprised)
This is some crazy stuff everyone!
in the context of 50% dilution last week I think the stock has done an amazing job of levitation. I am still on the sidelines though. Even if they can manage a GAAP profit at next earnings the P/E will be in Amazon or Linked In range LOL. They have a long long way to go. So far Brad the magician is winning the levitation game, though.
i think all the recent cash raised was needed to close the Pacer deal. They would need another large offering to get another large deal done I think. My bet is another 50% dilution right away may not fly too well or they may as well have just raised $700m last time. My guess is they need to digest the 2 large recent deals and show profits before another large cash raise. BUT BUT BUT the market seems to be throwing new found "QE cash" at everything today so who knows.
everything pops eventually. everything. this time is no different. it is greed that drives us all to lose. i recall some billionaire hedge guy once say something like "every smart and rich investor I know always sold too early" LOL.
much more volume now. lots of helium keep this rising. don't know when it will pop but it will. you just have to watch it every single day to beat the exodus when it happens. you could say the same for the entire market though.
Question: if the stock falls under the $25 secondary offering price what happens? Do they reprice the offering. Otherwise, nobody would want to buy at $25 when you can buy on the open market for $24. Right? Any help on this would be appreciated.
I guess that's the reason for the drop today then. The dilution will find it's way into the current share price.
Is this a joke? Do they think we are idiots and we don't see this "news" because it comes out with other stuff. They are diluting us all to death and have more debt now than Donald Trump. But no doubt the market will pony up and pile on the cash and ignore the consequences.
Where is the commonsense today??????????????????????
Ahhhh...the "greater fool theory" in action LOL. I love Chickens comment. It sums up everything about why the stock market continues to rise in the face of actual evidence of greatly deteriorating fundamentals. It reminds me of 2000 and 2008. I guess as long as Chicken "doesn't care about the company" he will be just fine in the long run so long as another fool will buy all of his stock. But don't miss the exit. It is a long drop to the bottom.
Guys, let's be real here, and recognize that any stock must eventually produce some real numbers to be valued on - not just perception.
i doubt it. there are like 5 people on this board regularly. hardly looks like manipulation by shorts haha. A true short play is when some "analyst" puts our a nasty scathing report and gets some douche bag lawyers to file a class action suit. Now, THAT would be a short play. What we are seeing here is about 5 dudes of which 2 are probably insiders all talking about the value of a stock that has risen several hundred percent in 3 or 4 years and whether the future will be like the past for us.
But a short game? No.
Good one, Real! Personally I think the CEO is a good guy and he certainly has good history. But this time he will struggle. Zip is right (above) because rolling up the exact same businesses (like United Rental) is easy to find cost reductions and get pricing power through local monopoly. His logistics play lacks both of these attributes and he is in a business with very very poor margins overall. They are certainly not growing, nor will they.
So I too have to take a step back and say that this company is not worth it's $900m market cap and doubt it ever will. Take your winnings so far and smile!
Stein , you probably hit the nail on the head. Are they giving credit to just anyone and are they under-pricing to get revenue in the door (thus the continued losses)???? It has been pointed out before that revenue is easy to get but profits are hard. XPO is going to need a LOT of future profits in a cruddy low margin business to justify their current multiple never mind any future gains from here. Current investors are all just crossing their fingers. Time will tell. It always goes.
what is amazing to me is that they are still wildly unprofitable, have HEAVY debt now, and they are in a low low growth and low margin industry. As they say though in the market, "...as long as there is a greater fool", right.
Amazing. What multiple on earnings is this deal? It makes Twitter look like a bahgain :-) LOL. XPO is losing it. The worst part is they are now getting saddled with debt too. Interesting to watch though.
Sentiment: Strong Sell