Cliff's Announcement and Company Transition

yea I saw that too it seems most all the transactions today were sells

 

If what you say about them low balling freight in order to get more capacity is true then thats a dangerous game. There are so many more companies out there who can wage that war better than USA can and they will soon follow suit and even beat USAs prices. Right now it just means that USA is going to take their losses on the top instead of the bottom for the time being to try and drive up revenue. They won't be able to do this for long with only 630 grand in cash on hand.

 

You have misunderstood what I mean by capacity. Right now there are a lot companies shipping stuff. These shippers need the capacity all the carriers can bring. Its this capacity that will drive things after the first of the new year. Once these shippers stop shipping as much there won't be a need for that capacity and this is when the fun starts. This is why I tell everybody to run like hell and get it while it's there to get. As per USA Truck I am watching 2 things. First I am watching to see what people that own a lot of the company stock does and I am watching that stock price, right now it's at $3.57.

 

Ok so yes I did misunderstand you. You are describing the overall ability of a company to meet customers needs. By this I assume you mean equiptment, drivers, and dispatch ets. Maybe even pricing is a part of capacity. USA has been trying to pick and choose customers for awhile now which means they turn a lot of freight down. Turning freight down in this industry doesn't go unnoticed. But see USA has been decreasing their capacity while others have slowly been increasing. Some of this is by choice some is because they had no choice I am sure. This is the time to be strategically growing your fleet not shrinking it. USA simply can't afford to do this. They can't even expand at the rate that they personally need to meet their current obligations.

 

Whew!!!! Do you smell that???? Looks like the stock took a big dump today. And the word from Van Buren is that we just had the best month of the whole year last month. You can't tell it from the stock price. Someone on Wall Street still thinks we are a train wreck looking for a place to happen it would seem. But I'm just a dumb steering wheel holder.

 

USA truck had "THEIR" best month of the whole year. Doesn't mean anything for profit or anything solid towards profitability. If you remember last year september was their best year of the month as well after they endured losses for the TWC QC transition. BTW its just the best month of the year. Not the best month ever and 3 months makes a quarter. USA must get excited about having a good month just like the overhype the new credit facility because although they won't admit they are very very thin. And that is why the stock took yet another nose dive today.

 

Another thing I thought I would point out however is the insider holding has increased. It was at 26% or so now is over 33%. Insiders can be just as dilusional as the common investor though. Im sure Cliff himself thought that after announcing the credit facility that the stock would shoot up but instead it just kept going down. Its down 10% since the credit facility was announced.

 

I am not a wall street expert but from what I am being told this low stock price is a result of downward pressure caused by automatic sell orders. USA Truck is in serious trouble and wall street knows it. The problem is the very heavy debt load the company is holding. Things seem to be OK but in reality there not. USA Truck used that credit card way too much over the last few years. At this point the company is low hanging fruit, I fully expect another company to snatch it soon.

 

Automatic sale orders are called stop limit orders. You buy a stock and say you want to sell it if it tanks to a certain level. If these recent drops are due to stop limits which could be the case especially when the volume today swelled to over 20000. The are not stop limits that were put in 6 months ago. They were most likely put in by people who bought recently and caused the stock price to go up but said if it goes below this level I want to sell. Even on a light trading day it will move very little and will still slowly go down. The company is nowhere near getting out of this slump. Even the 1.25% that they saved with the new credit its still just about 1.5 mil in savings over a years time. This means they lose 1.5 mil less at least maybe for 2012. What happens if they get to unlock the rest of the revolving credit? They go into more debt than they have now and things just get worse. But they will probably get bought out when its pretty much either that or file bankruptcy. The drivers need not worry about their jobs. Just the office people and mechanics and yes Cliff Beckham himself.

 

Took another dump today. As thinly traded as this stock is I would be surprised if it was stop orders being executed. If there was more heavy trading It would probably be going down faster.