ABF | ArcBest (ARCB) Initiated as Short at Off Wall Street


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ArcBest (ARCB) Initiated as Short at Off Wall Street
ArcBest (NASDAQ: ARCB) was initiated as a short recommendation at Off Wall Street with a price target of $35.95, according to a contact.

The key reason analysts are cautious is on concerns that it could face a major accounting problem because it is a contributor to central, southeast and southwest state pension plans required by contract with union workers. If plans continues to run a deficit and no legislative action is taken, ArcBest would be liable for its share of the deficit when money runs out in 2024-2026. Off Wall Street believes their estimated liability of $5 billion would wipe out equity shareholders.

Bulls expects revenues to increase in 2019. However the company is losing volume share. Revenue over the last few quarters have increased due to price increases but if pricing power abates, fundamental problems could be exposed.

The company is under investing in its core business which indicates management may be skeptical about the company’s longer term prospects. The company faces a competitive threat from Amazon logistics and this competition could erode market share revenue and probability.


Oh come now investors! This has to be fake news!
I have been watching the stock price climb for some time now, and have been puzzled as to why that was happening. I know the non-union assets HAVE to be performing well, right? But with ABF dragging the company down...

All of this is heavy sarcasm, if you don't know me.
"Management may be skeptical about the company's longer term prospects."

Meaning that somehow,.......in the future,.....they're going to have to inflate the non-Union assets in such a way that the Union can't charge them for diverting our work.

Got to make the shareholders happy,.......they're more important than customers or employees.......

So if they can subcontract out most work to flea-bag, fly-by-night, bottom-feeder carriers,.....they can still pay dividends to shareholders......
Who cares about highway safety?, or customer service?..........or the morality of taking a good occupation, and a good reputation,....built up over the years by hiring good employees and paying good wages..........and slashing the actual operating structure to the bare bones so that the reputation and service,.....and wages,.....are in tatters?

The .......people ......who will do this, will pull the ripcord on their Golden Parachute at the first sign of trouble.........

And another great company will bite the dust........
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