My Rebuttal to "LEXG.OB, THE SCAM"

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This is my rebuttal to the article "LEXG.OB, THE SCAM".

Without getting into the specifics of this stock's run from 10 cents to $10 this year, a reason that came up several times during the whole argument is that the company has no revenue. It's an argument that I've seen before and frankly it kind of annoys me. It's the reason why some of my TSX Venture mining plays have done terribly over the past year despite rising commodity prices and probably the reason why the Venture is not already trading at 5,000 and the TSX at 20,000. Probably more than half of the Venture-listed stocks haven't had a penny of revenue in their lifetime, but their leader is likely Copper Fox Metals, CUU.v:

http://tmx.quotemedia.com/quote.php?qm_symbol=cuu&locale=EN

You can see from the above link that CUU trades at $900M market cap despite not having a penny of revenue to it's name. Why is that? Because they have so much copper on their property that they will likely be bought out by TCK or some other major company with cash before they ever have to lift a pitchfork.

American investors are particularly touchy about companies that have no revenue. Maybe it's because they went through hell and back with the tech bubble 10 years ago. Maybe it's because their OTC market is so poorly regulated that LEXG-type of events happen far too often. But there is a huge difference between a tech company with no revenue and a resource company with no revenue. A tech company with no revenue might have a product, even a good product, but has no transparent plan on how to profitably sell it. See my blog post on Intertainment Media for an example of this.

A resource company is much, much different. The resource that they have in the ground is set in the market. Whether it's lithium, gold, oil or something else, they can sell it at a world price that fluctuates with the market. As long as you think that commodities will remain stable or rise in the next several years - and with China, India, Brazil etc all getting richer and with the world's population exploding that's a pretty safe bet - then all resource companies, whether they make money now or not will be great investments. All that has to be determined is how much of the resource they have and how much it costs to take it out of the ground.

If they have a 43-101 report out on their property then how much they have can reasonably be estimated. With potential upside for more. Costs are also relatively easy to estimate based on grade, thickness, depth until the resource is hit, location (with respect to delivery infrastructure) and the characteristics of the ground they are digging through. The only real risk is share dilution if they have to capitalize to bring the project to fruition themselves, although the bulk of these projects will likely be bought out by big players with the funds to do it themselves before that time.

So as in other words, a resource company with no revenues but a 43-101 report out is much, much less risky in this environment than a counterpart tech company. Less risk, in theory, comes with a greater stock price but we haven't seen that yet with many of these resource plays.

Now getting to the specifics of LEXG. If Copper Fox can trade at a $900M market cap with no revenues to its name then LEXG *could* conceivably be worth $300M in market cap if the 5 permits it holds on Valleyview contained a whole boatload of Lithium. That *could* be the speculation that has run up its stock price.

However, if we are going to look at LEXG's holdings, then we have to look at how they got them:

http://www.firstlithiumresources.com/Projects/Valleyview-Lithium-Project-Alberta/

Reviewing this link you see that First Lithium (FLNTF.pk in the US, MCI.v in Canada) optioned out 10.5K of their 90K hectares of this property to LEXG. Now I could get into the details of how First Lithium represent tremendous value if the speculation is based on Valleyview as written in all those "research" articles over the last little while for LEXG, but I'll just defer to the numerous posts on it below:

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=95699&tid=1850&mid=1850&tof=3&frt=1


http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=95699&tid=2055&mid=2055&tof=20&frt=1

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=95699&tid=1844&mid=1844&tof=19&frt=1


http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=29645213&l=0&r=0&s=MCI&t=LIST

It would be logical that First Lithium, not LEXG is the true play here if you're going to speculate that Valleyview holds the motherlode. However FLNTF trades at a mere 13 cents with the same amount of shares outstanding as LEXG. Why is that?

Because of First Lithium's TSX Venture symbol MCI.v. It's not so easy to pump FLNTF's symbol sky high because all of us smart Canadians rule the trading on this stock. That being said, if there is something behind Valleyview to justify this obscene price of LEXG, First Lithium is the definite better play because of its volume and price spike on Friday but still very reasonable market cap of $8M compared to LEXG. Oh and the fact it owns EIGHT times more than LEXG in addition to 6 other unrelated gold/silver/lithium/potash properties. Even if LEXG were to go back to 10 cents, logic would state that MCI should be closer to 80 cents if both companies were valued equally.

Based on my tone, I think it's quite obvious that I am one of those smart Canadians who picked up shares in MCI.v this week.

PS. I feel bad for the poor yokel that supposedly invested a million dollars in LEXG on Friday based on the average price over the past five days, assuming that's the truth. Who knows? So many people are in on this as a pump and dump that it could actually rise again based on contrarian views or a short squeeze. Or maybe that yokel was one of the insiders who dumped his $1M worth of shares at this mystery price at $10 all the way down to under $4 as a final middle finger to the poor outsider looking in, because, as you know, 10 cents to $10 on millions of shares is clearly not enough money to scam out of small investors already.


The key is they at least have a million dollars to find something big on those properties, assuming that money doesn't just go to Ferrari repair bills through their salaries as they sit and do nothing with it as the BoD. But if they do find something big, imagine what that does for First Lithium.

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Comparing my blog to Ortsbo.com - Does anyone want to pay me $33K for it?

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The latest stock market craze is Intertainment Media, trading on the Venture under the symbol INT. I love following this stock because it is a true pumpers dream. Every week - and now 2 or 3 times a week for their other projects - the company pushes a press release which has every metric under the sun EXCEPT revenue generating ones. Let's take a look at the latest one for Ortsbo right here

Within the first paragraph it states:

"Since launch in late July 2010, Ortsbo has recorded over 183 Million minutes of User Engagement, over 129 Million Page Views, approximately 40 Million Unique Users and in excess of 58 Million Online Sessions. All of the Ortsbo performance metrics are validated independently through 3^rd party verification including Google Analytics."

I'm taking a look at my Google Analytics and my total page views since November (which can be verified by looking at the counter below) is over 33.2 thousand.

Assuming that INT monetizes Ortsbo in a similar way that I monetize my blog through advertising with Adsense, Amazon and other initiatives, one could assume that my page views and its page views are directly correlated to revenue. As a bulk web traffic generator, they do have the advantage of charging a premium for their ad space so I'll give them that. But that will be offset by the fact that much of my traffic is from premium countries, namely the US and Canada. If the bulk of their traffic is from the BRIC countries as they state it is (and other blogs have challenged that fact but if you're reading this you probably already read those) then the page views are actually worth just a fraction of my page views. But just to make things simple, I'll assume that one of my page views is equivalent to one of their page views.

INT currently trades at a $175M market cap, NOT fully diluted but only with the current shares out there. I can't get an honest figure as to how much the fully diluted number is so I'll gave them a break in that respect. Let's say that 75% of their value is currently in Ortsbo, giving that platform a value of about $130M.

Now back to the page views. If my blog generated 33.2K page views and Ortsbo.com generated 129M page views, then I generate 0.026% of its traffic. Now EVERY INT long likes to justify their share purchase as a great deal by comparing Ortsbo to Facebook or Twitter. So I'm going to do the same.

If I get 0.026% of the traffic, my blog is worth 0.026% of the value of Ortsbo. 0.026% of $130M is $33.5K


CHAAAAA-CHINGGGGG!!!!

Any takers? I'll tell you what. I'll offer my blog to you for just $25K. It's a great deal when comparing to Ortsbo. And if Ortsbo is really worth $1 billion or more like the pumpers say it is, then my blog is actually worth 7-8 times more than $33.5K. You're getting the deal of a lifetime!!!

I just know that there's a ton of people thinking how kindergarten-level my logic is...BUT that's the exact same logic people used when they pumped up INT over $3 thinking someone is out there just BEGGING to buy up this so-far minuscule revenue generating platform for $1 billion or more because of what Twitter or Facebook is worth. 

I await for the first bidders....

Click here to see some information on three Canadian oil resource stocks with tremendous potential

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Q1 2011 Update for the Key Fundamental Statistics for the Oil and Gas Industry in Canada

Provided below are some of the Key Fundamental Statistics for the Oil and Gas Industry in Canada. These numbers are an update of my original article that can be referred to here. I recommend that you read that one to give this information some context. This article mainly focuses on producers or companies very near production. I have changed the format to group all the stats into one table and provide a ranking of all the stats based on some formulas I've developed. The stats provided are each company's price to earnings, price to sales, price to book value, price ot cash flow and operating profit margin.
The 25 TSX-listed companies included in this ranking are as follows:

Advantage Oil and Gas Ltd - AAV
Alange Energy Corp - ALE
Alberta OilSands - AOS
Bankers Petroleum Ltd - BNK
Canacol Energy Ltd - CNE
Canadian Natural Resources Ltd - CNQ
Compton Petroleum Corp - CMT
Connacher Oil and Gas Ltd - CLL
EnCana Corp - ECA
Gran Tierra Energy Inc - GTE
Ivanhoe Energy Inc - IE
Nexen Inc - NXY
Opti Canada Inc - OPC
Orleans Energy Ltd - OEX
Pacific Rubiales Energy Corp - PRE
PetroBakken Energy Ltd - PBN
Petrolifera Petroleum Ltd - PDP
Petrominerales Limitada - PMG
Questerre Energy Corp - QEC
Rock Energy Inc - RE
Strategic Oil & Gas Ltd - SOG
Talisman Energy Inc - TLM
Terra Energy Corporation - TT
Transglobe Energy Corp - TGL
Vero Energy Inc - VRO

Since my January update a lot of events have taken place. GTE bought out PDP shortly after I compared the two and how undervalued PDP was. Subsequently, PDP has fallen from one of the most undervalued stocks to just above industry average while GTE has risen to just above industry average. You could gather from this information that the deal was appropriate.

CMT, OPC, ALE and QEC have been hammered since January. The three latter companies have run into financial issues as they have a very highn burn rate seen from their poor margins while CMT took a big hit to their book value thanks to a write-down of their reserves. CMT still heads the undervalued list while OPC jumps to #2 despite their bad margins as their price to book value and price to sales are extremely low.

I continue to remain bullish on CMT despite its stock performance. Although I'm thankful my other positions have made up for this dog, I cannot see how it can be lumped into the same category as OPC when it comes to distressed securities. CMT's debt load is much lower, CMT's burn rate is much, much lower (they're cash flow positive as we see in the table below) and they are operationally independant - OPC is dependant upon Nexen's operation of Long Lake for success. It might be best for CMT to sell as many natural gas assets they have, pay down as much of the debt as possible and focus on their oil assets. Their book value is already at firesale prices, so if they can get better than firesales prices for those assets, the stock price should increase.

Company	P/E	P/S	P/B	P/CF	Margin	Rank
CMT	0.0	0.4	0.1	2.0	-2.53%	557
OPC	0.0	0.3	0.1	0.0	-109.61%	281
TT	0.0	1.5	0.9	3.8	0.03%	144
ECA	15.1	2.4	1.3	9.1	16.90%	122
CLL	0.0	1.2	0.9	14.1	6.26%	121
NXY	23.0	2.3	1.5	5.6	9.88%	120
PBN	42.8	4.3	1.1	6.1	9.13%	103
PMG	15.2	4.0	7.0	11.2	23.76%	102
CNQ	19.1	3.9	2.3	7.8	15.58%	101
PDP	0.0	2.2	0.6	7.2	-15.09%	80
GTE	34.9	5.2	2.3	10.0	5.31%	65
Industry	26.8	4.1	3.2	12.3	1.59%	55
TLM	47.1	3.4	2.0	6.7	-11.11%	53
RE	0.0	3.3	1.8	8.5	-15.35%	35
VRO	0.0	2.5	1.2	5.4	-31.92%	33
AAV	0.0	3.8	1.0	6.8	-24.23%	33
TGL	27.3	5.9	4.2	18.5	-8.54%	21
BNK	0.0	15.6	6.0	33.1	-0.23%	16
PRE	91.8	5.1	3.8	11.6	-24.03%	-4
OEX	0.0	2.9	0.7	10.2	-49.56%	-13
CNE	0.0	16.4	5.6	0.0	-98.18%	-187
QEC	0.0	24.7	1.1	93.0	-114.82%	-201
ALE	0.0	4.9	0.8	0.0	-138.51%	-230
AOS	0.0	18.7	0.8	0.0	-150.25%	-265
IE	0.0	44.8	3.0	0.0	-159.65%	-309
SOG	0.0	18.1	3.5	0.0	-170.42%	-330

Disclaimer: The source of my information is TD Waterhouse Market Research services as of March 12, 2011. I own positions in Gran Tierra Energy and Compton Petroleum.

Click here to see some information on three Canadian oil resource stocks with tremendous potential

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January Update for the Key Fundamental Statistics for the Oil and Gas Industry in Canada

Provided below are some of the Key Fundamental Statistics for the Oil and Gas Industry in Canada. These numbers are an update of my original article that can be referred to here. I recommend that you read that one to give this information some context. This article mainly focuses on producers or companies very near production. Referring to the margin statistic, investors in ALE learned a tough lesson this week that there is a lot of risk involved with companies that have very bad current margins and are burning a lot of cash. Investors in OPC have been learning that for months now.

The two stocks that I own on this list are Compton Petroleum and Petrolifera Petroleum. Compton once again dominates this list, mostly because its stock price has been down in the dumps while other oil and gas companies increase. I'm resigned to the fact that it looks like CMT will struggle for a long time but I am confident that the stock will once again regain form and be a $10 stock. Even at this low natural gas price, Compton's profit margin is only -2.5%. Once people realize that natural gas isn't like sugar and that its a valuable energy source, demand will outstrip supply and the new, leaner Compton will be making much more profit than it ever did when the stock was at $14 It just may be a few years from now.

PDP on the other hand has woken up from its slumber this week. Makes sense as it is far undervalued compared to South American peers like GTE. GTE's market cap is almost 20 times that of PDP's and it certainly does not have 20 times more worth in reserves. GTE in 2009 is where PDP will be in terms of production relative to company size in 2012 and you'll see the stock price rise accordingly.

Refer to the following reports from Jennings Capital to compare the two. You will need to create a Jennings Capital username and password to see them (its free):

PDP
GTE

While GTE is unquestionably better off, it is not 20 times better off than PDP and while GTE is pretty close to full value, there's a ton of unrecognized value in PDP's current share price. All because of the market's doubt in Richard Gusella's ability to get a deal done to start up Petrolifera's Peruvian land holdings. Click here if you are interested in further in-depth analysis of the oil and gas sector.

The 25 TSX-listed companies included in this ranking are as follows:

Advantage Oil and Gas Ltd - AAV
Alange Energy Corp - ALE
Alberta OilSands - AOS
Bankers Petroleum Ltd - BNK
Canacol Energy Ltd - CNE
Canadian Natural Resources Ltd - CNQ
Compton Petroleum Corp - CMT
Connacher Oil and Gas Ltd - CLL
EnCana Corp - ECA
Gran Tierra Energy Inc - GTE
Ivanhoe Energy Inc - IE
Nexen Inc - NXY
Opti Canada Inc - OPC
Orleans Energy Ltd - OEX
Pacific Rubiales Energy Corp - PRE
PetroBakken Energy Ltd - PBN
Petrolifera Petroleum Ltd - PDP
Petrominerales Limitada - PMG
Questerre Energy Corp - QEC
Rock Energy Inc - RE
Strategic Oil & Gas Ltd - SOG
Talisman Energy Inc - TLM
Terra Energy Corporation - TT
Transglobe Energy Corp - TGL
Vero Energy Inc - VRO


Price to Earnings

ECA.........11.0

PMG........15.7

CNQ........17.6

NXY.........20.9

Industry...25.2

TGL.........30.9

GTE.........36.6

TLM.........47.7

PBN.........47.8

The companies not listed do not have positive earnings at this time.


Price to Sales

CMT..........0.5

OPC .........0.9

CLL...........1.1

PDP..........1.6

TT.............1.7

NXY..........2.0

ECA..........2.2

RE............2.7

VRO.........2.8

TLM..........3.4

OEX..........3.5

AAV..........3.5

CNQ.........3.6

PMG.........4.2

Industry...4.4

PBN.........4.8

ALE.........5.2 GTE.........5.5

PRE.........5.8

TGL.........6.8

BNK.......16.2

CNE.......18.6

SOG.......19.3

AOS.......22.3

QEC.......35.0

IE ..........45.7

Price to Book

CMT........0.1

OPC........0.2

PDP........0.4

ALE.........0.8 CLL ........0.9

OEX........0.9

TT...........1.0

AAV........1.0

AOS........1.0

PBN........1.2

ECA........1.3

VRO........1.3

NXY.........1.5

RE...........1.5

QEC........1.6

TLM.........2.0

CNQ.........2.1

GTE.........2.5

IE ............3.1

Industry...3.2

SOG .......3.8

PRE........4.4

TGL.........4.8

BNK........6.2

CNE........7.2

PMG........7.3

Price to Cash Flow

CMT...........2.4

TT..............4.3

NXY...........5.0

PDP..........5.4

VRO..........5.9 AAV..........6.2

TLM...........6.7

PBN..........6.8

RE............7.0

CNQ..........7.2

ECA..........7.8

GTE..........10.7

PMG.........11.7

Industry...12.1

OEX.........12.4

PRE.........13.2

CLL .........13.9

TGL..........21.3

BNK.........34.3 QEC.........93.0

Profit Margin

PMG........23.76%

ECA........16.47%

CNQ........15.58%

NXY.........9.95%

PBN.........9.13%

Industry...6.16%

CLL .........6.26%

GTE.........5.31%

TT............0.03%

BNK........-0.23%

CMT........-2.53%

TGL.........-8.54%

TLM........-11.11%

PDP........-15.09%

RE..........-15.35%

PRE.......-24.03%

AAV.......-24.23%

VRO.......-31.92%

OEX.......-49.56%

QEC......-114.82%

ALE.......-138.51%

AOS......-150.25%

IE .........-159.65%

SOG......-170.42%

CNE......-209.05%

OPC......-212.85%

Disclaimer: The source of my information is TD Waterhouse Market Research services as of January 15, 2011. I own positions in Petrolifera Petroleum and Compton Petroleum.

Click here to see some information on three Canadian oil resource stocks with tremendous potential

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January Update to Key Fundamental Statistics for US Banks

Many people have been requesting an update to the numbers in my Key Fundamental Statistics for US Banks ranking. So here are the updates to the numbers for P/E, P/S, P/B, Profit Margin and Dividend yield. The numbers in the original article were after each company's Q3 results so the margins remain the same but these numbers do reflect most recent stock prices so I can understand why people would want to refer to updates. Refer to my original article to get commentary related to them.If there's another metric you'd like to see in this ranking, request it in the comments section and I'll see if I can dig it up the next time I do this. The companies involved in this ranking are:

Bank of America Corp NYSE:BAC
BB&T Corporation NYSE:BBT
Capital One Financial Corporation NYSE:COF
Citigroup Inc NYSE:C
Fifth Third Bancorp NASDAQ:FITB
JPMorgan Chase and Co NYSE:JPM
PNC Financial Services Group Inc NYSE:PNC
Regions Financial Corp NYSE:RF
Suntrust Banks Incorporated NYSE:STI
US Bancorp NYSE:USB
Wells Fargo & Company NYSE:WFC


Price to Earnings

COF….......8.9
PNC.........9.8
JPM.........12.5
USB.........17.3
WFC….....18.7
BBT..........23.5
Industry...34.0
C..............95.9
FITB.......254.5

COF, PNC and JPM would be the banks to be seriously considered as a buy when using the P/E. Every Canadian bank does better than the rest of the US banks so I would lean in that direction if I were a bank investor. BAC, STI and RF are all negative and thus aren't ranked but on a positive note Citi will start having marginal earnings and appears with a positive P/E for the first time in a long time. Notice that the industry P/E has skyrocketed to 34.0 based on huge price increases and mediocre earnings. Investors expect a lot of improvement for Q4 and some positive guidance for 2011 in the next couple of weeks. If it doesn't happen, the banks could be in for a slide.

Price to Sales

BAC.........1.3

COF……...1.4

RF…….....1.4

JPM….…..1.7

FITB……...1.8

STI…...…..1.8

WFC….....1.9

C……...….1.9

BBT….…..2.0

PNC….…..2.0

Industry…2.4

USB……..2.8

Nothing much to say here other than at least we can see where BAC, RF and STI rank because they can't go to negative sales. BAC actually does rather well using the price to sales metric.

Price to Book

BAC……...0.7

RF…...…..0.7

COF……...0.8

STI…...…..0.8

C……...….0.9

JPM……...1.0

FITB….…..1.1

BBT……....1.1

PNC……...1.1 Industry…1.3

WFC……..1.3

USB……..1.8

My personal favourite, BAC leads this list again. Nice to see that if it has a ton of toxic assets on its balance sheet, at least people are paying 70 cents on the dollar for them. COF is near the top of the list here too, impressive since it's at least earning money the "accounting" way. Note that pretty much every bank has had an increasing P/B thanks to an increase in stock price, reflecting investor expectations of positive future outcomes with the toxic assets and stress tests.

Profit Margin

PNC……...20.47%

COF……...17.68%

USB….…..16.54%

JPM……...15.86%

Industry…14.54%

WFC …....14.10%

BBT…….....8.96%

FITB……....5.12%

C……...…..2.50%

BAC……...-1.05%

STI…….....-2.83%

RF……....-18.18%

Dividend Yield %

Industry…2.69%

BBT……...2.26%

USB……...0.77%

WFC……..0.64%

PNC…......0.64%

RF…….....0.55%

JPM….…..0.46%

COF….…..0.43%

BAC……..0.27%

FITB……..0.27%

STI……....0.14%

C……..….0.00%

Every US bank pays a lower dividend than the banking industry worldwide. And while the industry dividend yield has been increasing, these banks' yield has been decreasing thanks to their price increases. It'll be interesting to see if these banks are able to follow up on the rumors to increase their dividends like banks have been doing worldwide. If you're looking for better yields, the Canadian banks have 3-5% dividends. If you're interested in a report that lists the top 100 dividend companies, see my blog on it. It's a subscription service that I find useful and it costs about the same as commission on 3 trades. If I'm going to advertise, it's not going to be on crap.

All numbers are updated as of January 12th, 2011. I do not own any of these companies, probably for a pretty good reason!

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Bodybuilding

Here's some links to articles I wrote about my workout routine for each body part. I've been working out for 15 years now with decent success so I thikn what I have to say is quite valid.

My Weight Training Routine
How to build big Biceps
How to build big Triceps
How to build big Forearms
How to build big Shoulders
How to build a big Chest
How to build a big Back
How to build big Legs
How to build big Calves

Other workout-related advice:
Are Bowflex SelectTech Adjustable Dumbbells suitable for you?
How I lost over 40 pounds in 6 months with some simple diet changes

Update to YRC Worldwide Fundamentals Compared to the Trucking Industry

People have been requesting an update to the numbers in my YRC Worldwide Fundamentals Compared to the Trucking Industry ranking. So here are the updates to the numbers for P/E, P/S, P/B, and Profit Margin. Debt to Capital % and Current Ratio have not changed during this time span so I will not update those items until after Q4 results. In this round it's a good news/bad news situation for YRC Worldwide. Their Book Value has gone further negative as they lost money in the last quarter, but their margin is improving and revenue has increased quarter over quarter. Refer to my original article to get commentary related to them. If there's another metric you'd like to see in this ranking, request it in the comments section and I'll see if I can dig it up the next time I do this. The companies involved in this ranking are:

Arkansas Best Corp NASDAQ:ABFS
Con-Way Inc NYSE:CNW
JB Hunt Transport Services Inc NASDAQ:JBHT
Landstar System Incorporated NASDAQ:LSTR
Old Dominion Freight Line Inc NASDAQ:ODFL
Werner Enterprises Inc NASDAQ:WERN


Price to Earnings

WERN...21.8
LSTR.....24.0
ODFL....26.9
JBHT.....27.6

Four companies have positive earnings. Not much has changed under this metric.





Price to Sales

YRCW....0.03
ABFS.......0.4
CNW........0.4
LSTR.......0.8
WERN.....0.9
ODFL......1.2
JBHT.......1.3

YRCW's P/S metric actually dropped from 0.04 to 0.03. If they can turn their margins around, they could have a very good P/E at this price.

Price to Book

ABFS.....1.5
WERN....2.1
CNW......2.2
ODFL.....2.6
LSTR......7.0
JBHT......8.1

This is where the bad side of YRC Worldwide gets worse. They have a negative book value that is getting worse. Their book value in the prior article was -$1.71. Now it's -$2.53. At that pace it could easily go to -$3 to -$4 next year.

Profit Margin

JBHT........5.02%
ODFL.......4.54%
WERN.....4.13%
LSTR.......3.43%
CNW......-0.01%
YRCW....-4.80%
ABFS.....-7.43%

The good news for YRCW is that they managed to improve their margin from -10.44% to -4.80%, making it a lot more plausible for them to start pulling a profit sometime next year as long as they keep their costs under control. A positive margin of 1% over the course of the year would cause their P/E metric to be dominant in the industry because their revenues are so much larger than their market cap when looking at the P/S.The stock price could skyrocket thanks to that. A lot of investors are betting on this happening. Meanwhile, there's a lot that look at that Book Value and see imminent bankruptcy protection written all over YRCW. It will be interesting to see where this company lands.


All numbers are updated as of December 16th, 2010. I do not own any of these companies.

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