Sni IPO profile.

JB Schneider. Looks like the shopping spree is going to be on containers and chassis. Wouldn't be surprising to see truckload shrink significantly and become 100℅ lease operators.

 

Lofgren has been hanging out in DC with politicians.

Spend, lie, spend and lie.

 

Of course it is. The ICOA says we get 65% of what Schneider National Carriers gets, not 65% of what Schneider National or logistics gets for the load. You can't be mad at them for this. It's legal & you would do the same thing if you were in their shoes, if you've got good business sense. That's all this is, it's business.

 

And the 5k re-market fee is just business too...

I'd short the stock...

 

I think you're getting hung up on the debt to income ratio and net profit. Don't forget who the majority of the debt to is - Schneider Finance. My number crunching is only unsubstantiated guessing but from this latest release SNI pays SFI about the same per truck as individual "business owners". As an aside BO just doesn't have the same " je ne sais pas" that IC does.

DFO and FW have pointed out the lease works out to a 16% APR on a three year but out vs paying cash on the barrel. If you take that down to a normal interest rate you'd see at least another $50 million in net profit.

From what I've seen over the last 5 years net profit margin tends to be 4-6% for the companies that report. So SNI's proforma 3.75% rate isn't that far off, once you account for SFI it's performance is right in the normal range.

Then remember they've had some major payouts over the last two years. 36 million to the Indian couple, 20 million for the wage issues in California. Both of which have, in my opinion, contributed to the movement of operations out of California at a rushed pace and higher costs.

All that said I'm not buying any stock for at least 6 months. But then again I've paired down my transportation holdings starting 18 months ago. Imy waiting for rates to go up before I buy in again.

 

they also just bought 2 companies
......

 

They have $3B in assets and $1.8B in debt....Unless I missed something.

The profit margin is right there with swft in the 3.7-3.9 range. It's on the low end, I think, but workable. 7-10% would be a better range but at least it's not grocery range of 1-2%.

TA

 

Looks like he has a 92% O/R and a 4% net. Not bad for a trucking mega really. The 92 is high and the $20 a share is high so for these reasons, I'm out.....

 

Day 1 as a publicly traded company is in the books. Offered at 19.00, traded as high as 19.74 and low as 18.57, closed at 19.00.

Not an expert on IPOs but that doesn't seem like a stellar start.