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XPO | Sic Sold

ShabaDoo said:
Found out today that XPO sold our SIC and now we're leasing the property. Is this going on elsewhere?
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Yeah. It's part of the shell game Jacobs is playing. He is using another entity that he owns to buy the terminals. Then lease them back to XPO. XPO shows a big influx of cash from the benefit of the sale. And he continues to suck the life out of this company formerly known as Con-way. Lining his own pockets coming and going.
 
sucker666 said:
I’m no business man but that sounds to me their trying to make the bottom line look better.
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It worked for a day. The stock shot up over seven dollars. And then Wall street read up on everything. And nope. Back in line where you were.

Company is drowning in debt. Unable to grow because the only way he knows is to buy and he can't buy anything because he's out of money.
 
So, if we keep selling our assets, the value of the company goes down, stocks go down, purchasing power goes down, and on and on. As it is right now, not 1 of our tractors or trailers have passed or will pass a DOT inspection. The way we're going, our closest competitor will end up being ABF, if they don't outright sell the company.
 
ShabaDoo said:
So, if we keep selling our assets, the value of the company goes down, stocks go down, purchasing power goes down, and on and on. As it is right now, not 1 of our tractors or trailers have passed or will pass a DOT inspection. The way we're going, our closest competitor will end up being ABF, if they don't outright sell the company.
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Let's say the LTL company gets sold. Okay. Now Bradley Jacobs has set up another revenue stream by leasing properties back to a company XPO doesn't own anymore.

Sell the house but keep the land and charge the new owners a lot fee like a mobile home park. Feels slimy , but what are you gonna do?
 
ShabaDoo said:
So, if we keep selling our assets, the value of the company goes down, stocks go down, purchasing power goes down, and on and on. As it is right now, not 1 of our tractors or trailers have passed or will pass a DOT inspection. The way we're going, our closest competitor will end up being ABF, if they don't outright sell the company.
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It seems more likely that he will close the LTL, rather than sell. LTL companies keep going out of business. No one is buying them. It's cheaper to get whatever you might like to have at auction prices. Than it is to take on whatever debt or responsibilities the previous company held.
 
icuicp said:
Let's say the LTL company gets sold. Okay. Now Bradley Jacobs has set up another revenue stream by leasing properties back to a company XPO doesn't own anymore.

Sell the house but keep the land and charge the new owners a lot fee like a mobile home park. Feels slimy , but what are you gonna do?
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The land has more value in many areas than the company does. At some point you have to accept the reality of the situation.
 
Freight Maniac said:
Sounds like he's pulling a Sears on the company. Similar to what Eddie Lampert the CEO of Sears did to Sears. Sold all the Sears real estate to his company then leased it back to Sears. Double dipping. Sears never recovered from that.
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YRC sold a bunch of terminals to Estes and leases them back. There are many examples of these situations. For a company to be at a point like this, it takes dire circumstances. And it's telling of the state of XPO.
 
I’m not so sure if it’s dire . He can not proceed with his typical strategy of growing revenue by buying up companies. I think he’s perplex and unable to grow a company though organic means. It’s all about luring investors/ money so he can resume his typical mo
If a recession hits as some fear it may have a big affect on Xpo because of the debt load.
 
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So basically, Jacobs is playing chess and already knows what his next moves are with the company, so he's just setting up his revenue stream before the inevitable.
I googled the dude, he's got his hand in so many cookie jars, he will never care about the human aspect that put him where he is.
 
Word is they want to sell the entire mid Atlantic and Northeast area terminals. This from a pretty reliable source. Something is up.
Has anyone heard anything to substantiate this?
 
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sucker666 said:
Word is they want to sell the entire mid Atlantic and Northeast area terminals. This from a pretty reliable source. Something is up.
Has anyone heard anything to substantiate this?
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Nothing to substantiate. However. Common sense says. Those areas have the highest land values. And are the most appealing financially.
 
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