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Monte Sol Capital

 
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  • Autoinfo: A Growing Truck Freight Broker Not Priced Like One [View article]
    Illiquidity is a risk inherent in all micro-cap investing.

    "Dead money" is a strange term for shares that have spent the past four years rising in linear fashion.
    Dec 18 10:05 AM | 2 Likes Like |Link to Comment
  • Autoinfo: A Growing Truck Freight Broker Not Priced Like One [View article]
    AUTO's agent-based model is discussed in the article. There are a number of 3PL companies that use a mix of agents and salaried brokers, including ECHO and RLGT in the public sphere.
    Dec 9 05:17 PM | Likes Like |Link to Comment
  • Autoinfo: A Growing Truck Freight Broker Not Priced Like One [View article]
    I don't know what price AUTO would take or XPO would offer. I don't want to speculate.
    Dec 9 09:55 AM | Likes Like |Link to Comment
  • Autoinfo: A Growing Truck Freight Broker Not Priced Like One [View article]
    Yes. Whether there is a price that would make both sides happy is a different question.

    You can find the list of the largest truck freight brokers here:
    http://bit.ly/WQBn4m

    Of the top ten truck freight brokers, CHRW, LSTR, and ECHO are public but bigger than XPO. Hub Group and Pacer are intermodal 3PLs--not the business XPO is aiming for. Transplace and Yusen are diversified 3PLs that provide numerous services in addition to truck freight brokerage. Freightquote uses an online business model. Total Quality is a pure-play truck freight broker, but it is on the border line of being too large for XPO to acquire.

    The story is similar when you look at the brokers ranked 10th to 20th by size. JB Hunt, Matson, and BNSF are captive subsidiaries of larger asset-based transportation companies. England, Jacobson, and MIQ are diversified 3PLs. TTS specializes in trade shows.

    Out of the top 20 providers, Autoinfo, PLS, Coyote, and Allen Lund appear to be the only standalone pure-play truck freight brokers that XPO could acquire without taking on additional debt.

    So yes, I think AUTO is a valid takeover target for XPO. AUTO represents one of the best available opportunities to reach scale quickly in domestic truck freight brokerage.
    Dec 8 03:56 PM | Likes Like |Link to Comment
  • Autoinfo: A Growing Truck Freight Broker Not Priced Like One [View article]
    I agree. On the Monte Sol website there are additional articles about 3PL and RLGT specifically.

    http://bit.ly/UiRSUH
    http://bit.ly/XypS6L
    Dec 7 09:07 AM | Likes Like |Link to Comment
  • Autoinfo: A Growing Truck Freight Broker Not Priced Like One [View article]
    David,

    Autoinfo bought Sunteck in 2000. The Autoinfo corporate name is a holdover from the period prior to 2000, when the company was in other businesses. Today Autoinfo is solely a truck broker.
    Dec 7 09:03 AM | Likes Like |Link to Comment
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