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XPO | Selling Off

sucker666 said:
We live a a strange time . People put their trust in a president who habitually lies on a daily basis. People want change and are willing to trust someone who is not trustworthy to get it . It boggles my mind who people put faith into.
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Obama didn't lie ?
Bush didn't lie ?
Clinton didn't lie ?
Bush didn't lie ?
Reagan didn't lie ?
Carter didn't lie ?
How far do I got to go ? I think there is a fable about George Washington not telling a lie. Something about a cherry tree.
 
sucker666 said:
Keep mind this could all be a stunt to drive the stock higher . That possibility does exist.
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But it could also be looking for affirmation. And since just talking about this has resulted in a jump. He is likely to follow through. Looking to drive the shares higher through any means necessary.
 
https://www.scmr.com/article/xpo_lo...alternatives_through_spin_off_or_sale_of/news



Evan Armstrong, president of supply chain consultancy Armstrong & Associates, had a different take on the situation, calling it a clear sign that XPO is floundering strategically.

“Of all the business units, the one that has been and continues to be a mismatch to XPO’s third-party logistics business is its domestic LTL trucking operation,” said Armstrong. “It is hard to cross sell asset-based LTL trucking in conjunction with 3PL services such as Value-added Warehousing and Distribution (VAWD), and non-asset based Domestic Transportation Management (DTM) and International Transportation Management (ITM). In addition, its LTL operations are primarily B2B focused and not well suited to meet the demands of growing B2C E-Commerce market. While it could sell of its last mile operations for a solid multiple of around 10x EBITDA, it wouldn’t make sense with e-commerce 3PL market revenues growing at a compound annual growth rate of 18% according to our estimates. By comparison LTL is a slow growth market. Its VAWD operations can also benefit from the e-commerce boom. XPO Global Forwarding, its ITM business unit, could also benefit from more strategic emphasis and seems to be missing out on the e-commerce growth seen by some of its competitors. It will be interesting to see what direction XPO and its outside investment advisors take it in. Will they construct a short-term gain, or develop a long-term market-driven strategy?”



It seems even some of the people who are in the know are confused by this development and it's possible direction.
 
Is XPO breaking apart or what?
JANUARY 20, 2020

John Bendel
Last week, XPO Chairman and CEO Brad Jacobs said he might sell off parts of the company. And then he said he might not. Either way, he stressed, he would never, ever sell XPO Logistics, its growing and profitable less-than-a-truckload business. Uh, uh. No way.

In the U.S. at least that means you won’t notice much change on the highway whatever happens – or doesn’t. Some XPO intermodal containers would be painted over with a new logo. Some port drayage and straight trucks in the last-mile business may change logos too. But XPO Logistics, the highly visible LTL, will still be around – unless it isn’t.

Hey, I know what Brad said, but in the face of indecision you have to hedge your bets.

Greenwich, Conn.-based XPO was born in 2011, when Brad bought and renamed Express-1 Expedited Solutions. Brad bought 17 more companies in transportation and logistics. The idea was to build one company that could sell a corporate shipper virtually any service they needed. One part of XPO could introduce its customers to other XPO services. They call it cross-selling.

Where highway visibility is concerned, XPO grew in stealth mode until 2015, when it took over Conway, one of the largest LTLs in the U.S. It took XPO a couple of years to rebrand Conway’s equipment, its intermodal containers, and all those smaller trucks from earlier acquisitions. When the job was done, it looked like XPO had exploded from nowhere into a transportation octopus with a tentacle in just about everything. That was pretty much true.

Wall Street loved XPO.
After a rumor spread that The Home Depot was considering an XPO take over, the company’s stock rose to its all-time high of $116 per share, according to Seeking Alpha, a financial research firm.

Then in December 2018, a party-pooper named Spruce Point Capital published an article bashing XPO. Spruce Point makes money short-selling stocks. Even so, the article put a pin XPO’s bubble. XPO stock fell to less than $50 a share. It has since recovered and sells north of $75.

Last week, Brad said selling off pieces of the company will be good for shareholders. It’s all about those stockholders, he said.

Business opinions vary from “he’ll never really do it” to “after publicly saying he might, he has to.” Business-savvy types quote stock prices, margins, quarterly reports and Ouija boards to make their cases.

Here’s how it looks to this amateur.

All Brad’s talk and industry speculation about breaking up his dream conglomerate for the sake of the holy shareholders is smoke. When big companies sell off business segments, it usually means one of two things: the segment is doing poorly or they need cash.

In its 2018 attack on XPO, Spruce Point claimed – among many nasty things – that the company was “dependent on financing for survival.” Friendly researchers challenged the allegation, which led to the stock price recovery. But the smoke from the skirmish lingers.


From - Landline
 
icuicp said:
Is XPO breaking apart or what?
JANUARY 20, 2020

John Bendel
Last week, XPO Chairman and CEO Brad Jacobs said he might sell off parts of the company. And then he said he might not. Either way, he stressed, he would never, ever sell XPO Logistics, its growing and profitable less-than-a-truckload business. Uh, uh. No way.

In the U.S. at least that means you won’t notice much change on the highway whatever happens – or doesn’t. Some XPO intermodal containers would be painted over with a new logo. Some port drayage and straight trucks in the last-mile business may change logos too. But XPO Logistics, the highly visible LTL, will still be around – unless it isn’t.

Hey, I know what Brad said, but in the face of indecision you have to hedge your bets.

Greenwich, Conn.-based XPO was born in 2011, when Brad bought and renamed Express-1 Expedited Solutions. Brad bought 17 more companies in transportation and logistics. The idea was to build one company that could sell a corporate shipper virtually any service they needed. One part of XPO could introduce its customers to other XPO services. They call it cross-selling.

Where highway visibility is concerned, XPO grew in stealth mode until 2015, when it took over Conway, one of the largest LTLs in the U.S. It took XPO a couple of years to rebrand Conway’s equipment, its intermodal containers, and all those smaller trucks from earlier acquisitions. When the job was done, it looked like XPO had exploded from nowhere into a transportation octopus with a tentacle in just about everything. That was pretty much true.

Wall Street loved XPO.
After a rumor spread that The Home Depot was considering an XPO take over, the company’s stock rose to its all-time high of $116 per share, according to Seeking Alpha, a financial research firm.

Then in December 2018, a party-pooper named Spruce Point Capital published an article bashing XPO. Spruce Point makes money short-selling stocks. Even so, the article put a pin XPO’s bubble. XPO stock fell to less than $50 a share. It has since recovered and sells north of $75.

Last week, Brad said selling off pieces of the company will be good for shareholders. It’s all about those stockholders, he said.

Business opinions vary from “he’ll never really do it” to “after publicly saying he might, he has to.” Business-savvy types quote stock prices, margins, quarterly reports and Ouija boards to make their cases.

Here’s how it looks to this amateur.

All Brad’s talk and industry speculation about breaking up his dream conglomerate for the sake of the holy shareholders is smoke. When big companies sell off business segments, it usually means one of two things: the segment is doing poorly or they need cash.

In its 2018 attack on XPO, Spruce Point claimed – among many nasty things – that the company was “dependent on financing for survival.” Friendly researchers challenged the allegation, which led to the stock price recovery. But the smoke from the skirmish lingers.


From - Landline
Click to expand...
Interesting perspective.
 
highspeeds said:
Obama didn't lie ?
Bush didn't lie ?
Clinton didn't lie ?
Bush didn't lie ?
Reagan didn't lie ?
Carter didn't lie ?
How far do I got to go ? I think there is a fable about George Washington not telling a lie. Something about a cherry tree.
Click to expand...

So... we just accept it?

Nah, not over here. I'm not sure about Carter, he was president while I was alive but before I have memories. But the rest on that list? They all should have been impeached or tried at The Hague.

No matter where we fall ideologically, we should all be unified that being constantly lied to is wrong. It is comically depressing that we tend to not even agree on that much.
 
Tao said:
So... we just accept it?

Nah, not over here. I'm not sure about Carter, he was president while I was alive but before I have memories. But the rest on that list? They all should have been impeached or tried at The Hague.

No matter where we fall ideologically, we should all be unified that being constantly lied to is wrong. It is comically depressing that we tend to not even agree on that much.
Click to expand...
One mans lie is another’s truth. Who decides what is true and what is not? Facts are distorted by everyone to fit their worldviews. Some would argue that a lie told with good intentions is ok. I’m not one of those people but I hope you get my point
 
joes bar and grill said:
This comment was particularly interesting
12 Comments
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  1. Serene Gene says:
    Monday, January 27, 2020 at 11:16 am
    Although I am not a employee I have worked as a labor consultant for both Con-way and Xpo . I can tell you things have changed for sure over the last few years under Xpo . Some good some bad. I hope it all works out .
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Keep watching FxF board. Red racer will come out of the closet next lol
 
joes bar and grill said:
This comment was particularly interesting
12 Comments
Comments navigation
Older comments
  1. Serene Gene says:
    Monday, January 27, 2020 at 11:16 am
    Although I am not a employee I have worked as a labor consultant for both Con-way and Xpo . I can tell you things have changed for sure over the last few years under Xpo . Some good some bad. I hope it all works out .
Click to expand...
If this really was Serene Gene that's crazy. Over and over this person claimed they were a driver.
 
joes bar and grill said:
You mean you don't think a labor consultant would lie?
Click to expand...
I vaguely remember Upnorth saying he was a driver. Hollywoodz and Sucker questioned whether he was an employee and/or a driver due to the type of knowledge he had access to. His wording of his statements an overall tone of anti-worker sentiment ( not just anti-union ) lead me to be leery of Gene's motives.
 
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