there is no debate about the stock price. the stock is what it is. it always will be. that's a given. there is no interesting discussion about the stock price, and this is a message board. second, as a fanboy, you've identified your own ego so closely with the company as to be unable to hear any criticism of jacobs without sticking your fingers in your eyes and screaming "la la la stock price." that's fine. but there is no disagreement about the stock price.
From the JOC site:
Bradley said he would expand the expedited division as part of his plan to make XPO a multibillion-dollar company. Express-1 “opened a cold start last year in Birmingham, Ala.,” he said. “There are a few acquisitions we’re looking at.”
Expanding expedited through acquisition is “trickier” than growing brokerage in that way, “largely because the expedited model is an owner-operator model,” he said. “You’ve got to make sure they stay with your company after the deal.”
There is a company doing growth by acquisiton in expedited, Radiant logistics. So it can be done. It strikes me as being a fundamentally better business than whatever it is Jacobs is doing. I suppose the difference is Radiant is taking it slow and Jacobs doesn't do it that way. we'll see which is the better strategy (please do not say "but WHAT ABOUT THE STOCK PRICE???!!!!!!!!11111111 We can all see the stock price)
you never heard of sandbagging? Sorbet totally sandbagged this quarter. Just look at that chart man - coiled spring baby!!!!!!!!!!!!11
the A warrants are really at $6.60 adjusted for the reverse split. and all divvys under 10c are not subtracted from the warrant price
in 5 years the warrants will be coming due. So book value today is $55, compounded at 12% per year that's around $100, then at modest 1.5x multiple tangible book that's a $150 stock, or about $40 on the warrants figuring in $2 of dividends over that time.
shorting something below tangible book is obviously stupid, so no not doing that. just shame that management is so bad. should be much much higher. the broker dealer should be shut down or sold. the last thing wall street needs is another marginal bank making pointless upgrades and downgrades. or doing merger arbitrage as if this was the 1980s.
btw, why has there been no lasik/tlc deal? probably because lasik doesn't have cash/stock to do deal. if stock price gets up there, could do deal with stock . . . very bullish, not too much overlap in coverage areas
search volume for lasik is up for first january in long time . . . ok its up just a tiny bit, but last few januaries were down yoy . . . don't know if that means anything, but things aren't getting worse
couple of problems with this. first, the prop capital grew at 16% GROSS . . . net is much less, net is close to zero over last six years. So how much is that prop capital worth? A lot, if used to buy back stock. Not very much, if mgmt insists on fun but unprofitable prop trading strategy. Second, the broker dealer also uses plenty of capital. Third, the investment bank is not out of the woods . . . could post more losses. It has negative value, profitability has to be calculated over entire cycle. Negative value, in my opinion. Ultimately will have to be shut down (expensive) or more $$$$$$$$$$ shoveled in. $4 is about right.