Joseph Scime's  Instablog

Echo Global Logistics, Inc. (ECHO) Provides technology enabled transportation and supply chain management services and logistics needs in the United States. A dedicated team business model gives each client a team of transportation professionals to be your point of contact for all your shipping needs.  Its Web-based technology platform, Evolved Transportation Manager, compiles and analyzes data from its network of approximately 24,000 transportation providers to serve a primary market of small to medium shippers and freight management needs.

 ONGOING TECHNOLOGY

-Average of two software releases per month

-Support significant scale and growth in software services, client base, loads, data and vendors

-Standardized, reusable services and processes to ensure scalability and constant service levels

-99.999% uptime for all transactional and back office systems

-Implementation of SOX controls and successful completion of year one SOX audits

-Post acquisition integration of staff, processes, clients, vendors, data, AP, AR, etc.

Share Structure

Shares Outstanding  22.13M

Float  10.14M

% Held by Insiders 40.77%

% Held by Institutions 50.80%

Risk Highlights

Price Target  (ECHO)

Mean $19.00

High $ 22.00

Low $16.00

EPS Target Year of 2011

Est. Average EPS  $0.57

Low Est.                 $0.55

High Est.                 $0.61

EPS Target Year Ending 2012

Est. Average EPS   $0.81

Low Est.                  $0.75

High Est.                 $0.85

Value Proposition

GROWTH

Growth through rolling up the industry in acquisitions of small to mid -size players.

After 12 months, acquisition revenue is up 67% on average

Five out of seven acquisitions have doubled their revenue -It takes an average of 16 months to double revenues from acquisitions.

ECHO has a forecasted Earnings Growth Rate of 16% and a Sales Growth Rate of 42% per year. This is exceptionally good compared to its competitors.