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Daseke Stock Price Has Displayed Its Strongest Performance Since Being Public

Jul. 12, 2017 9:05 AM ETDaseke, Inc. (DSKE)JBHT, LSTR, PTSI, XPO13 Comments
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  • Daseke's stock price is up over 34 percent from the lows set in early-June.
  • Execution of recent acquisitions will continue to be important as the primary growth thesis is predicated on consolidation of a highly fragmented $133 billion market.
  • The company remains on track to hit its $140 and $200 million adjusted EBITDA targets for 2017 and 2019.
  • The focus on adjusted EBITDA targets is possibly one of the factors driving recent performance; and likely will be a continued driver for near-term potential gains.

Daseke’s (NASDAQ:DSKE) stock price has been on a tear from early-June. The stock price has risen from a low of $8.87 to $12 per share during this short period. I initially wrote an article on the company back in April – the high points of the article were that Daseke presented a unique opportunity for investors seeking exposure to the open deck market for trucking. But I remained a little cautious based upon the company’s leverage and transition towards increasing profitability.

Soon-after this article, I initiated a small position in the company’s common shares. This move was predicated on the benefits of owning an asset-based open deck carrier with national scale. As consolidation in the trucking industry continues, and federal mandates come into place, I am a believer that the strongest asset-based businesses will thrive. Adding a company like Daseke into my portfolio under management is a nice fit further diversifying existing exposure to the trucking industry via e-commerce, intermodal and less-than-truckload (LTL).

Source: Daseke, Inc. – Consolidating the Flatbed & Specialized Logistics Market, Acquisition Conference Call, July 6, 2017

At the company’s most recent acquisition conference call, the slide above has been used consistently to depict Daseke’s market potential. Based on the three deals in 2017, Daseke, has the largest flatbed and specialized fleet in North America, with over 3,600 tractors and 7,500 trailers, with 1.2 million square feet of warehouse space dedicated to industrial logistics and distribution services.

Per the sourced FTR information, less than 1 percent of the market, or just under 400 companies, have a fleet greater than 100 trucks. This strongly sets Daseke apart from the competition, with the opportunity to continue growing via the consolidation model. This graphic truly gets at the interest and opportunity for an investor to own Daseke.

Accretive deals allow

This article was written by

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Investing can be very challenging, especially for those looking for growth opportunities. I like to consider aggressive growth opportunities, with my investments. These are the investments yielding the best returns.

Analyst’s Disclosure: I am/we are long DSKE, JBHT, XPO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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