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Strategies & Market Trends : Poorman's - CANSLIM Potential Stocks
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To: ST Trader who wrote (56)6/12/2000 11:34:00 AM
From: Carl Worth  Read Replies (2) of 128
 
It is clearly confusing (oxymoron? <g>) but the way I read things the revenues increased because they are now selling cars as well as just shipping cars so they have in effect replaced x revenue per car for just shipping it with x+y revenue per car by now being the seller of the car as well. Quote from the 1Q'00 earnings report:

"Revenues from automobile trading are offsetting the reduction in shipping volume as the company transitions to a more traditional billing structure."

Here is a quote from the 1999 year end earnings report which indicates that this change in their freight revenue practices began last year so it didn't just start with the 1Q'00 numbers:

``We are pleased with our 1999 results. Last year we began diversifying our operations and expanding geographically. By shifting part of our operations to a more traditional pre-paid freight model, we have improved our cash flow and increased our net margins. This year will bring further diversification in both operations and geography. For example, our financial strength and captive shipping business makes owning our own vessels logical. In May we expect to begin service of a vessel capable of carrying 3,000 cars per voyage,'' said Aldo Labiad, President and Chief Executive Officer of A.C.L.N. Limited. "

I definitely don't feel like I have 100% grasp on the numbers here but it does seem that they are making progress in their results. This fact along with the analysts looking for $3.50 this year and the past history of successful operations gives me the confidence to start a position in the stock which I did today. I like the way they seem to be finding opportunities and moving on them, as with opening new markets and in purchasing their own vessel to move the cars which should save them overhead going forward.

Hopefully Kevin can learn more from the IR packet and possibly the IR person.

Carl
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