Comments on: TRADE OF THE DAY: SHORTING THE TRANSPORTS http://pragcap.com/trade-of-the-day-shorting-the-transports Sat, 20 Mar 2010 12:11:08 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: TPC http://pragcap.com/trade-of-the-day-shorting-the-transports#comment-6342 TPC Thu, 24 Sep 2009 03:59:59 +0000 http://pragcap.com/?p=9493#comment-6342 Nice thoughts guys. Van, I got a sell signal today. Not a short signal, but a move to cash signal.... Nice thoughts guys.

Van, I got a sell signal today. Not a short signal, but a move to cash signal….

]]> By: Wilder http://pragcap.com/trade-of-the-day-shorting-the-transports#comment-6341 Wilder Thu, 24 Sep 2009 03:05:55 +0000 http://pragcap.com/?p=9493#comment-6341 If YRCW can raise some capital after their stock move today, CNW and the other LTL stocks are toast. It's all been share gains driven by aggressive pricing to drive YRCW out of business (see FDX commentary). If that doesn't come to fruition, they will give back share to YRCW (shippers want to keep them around, they're just concerned) and price declines will accelerate until capacity exits. ODFL/CNW have bet on YRCW bankruptcy and they appear to be wrong so far (capital raise and union power make YRCW tough to kill). This creates even more of a capacity glut. Plus, CNW is playing acctg games with their pension and "cost cuts" (actually half was from a change in vacation acctg) and trades at a ridiculous multiple (30+). In short, CNW is the best transport short. If YRCW can raise some capital after their stock move today, CNW and the other LTL stocks are toast. It’s all been share gains driven by aggressive pricing to drive YRCW out of business (see FDX commentary). If that doesn’t come to fruition, they will give back share to YRCW (shippers want to keep them around, they’re just concerned) and price declines will accelerate until capacity exits. ODFL/CNW have bet on YRCW bankruptcy and they appear to be wrong so far (capital raise and union power make YRCW tough to kill). This creates even more of a capacity glut. Plus, CNW is playing acctg games with their pension and “cost cuts” (actually half was from a change in vacation acctg) and trades at a ridiculous multiple (30+).

In short, CNW is the best transport short.

]]> By: Van http://pragcap.com/trade-of-the-day-shorting-the-transports#comment-6340 Van Thu, 24 Sep 2009 02:57:19 +0000 http://pragcap.com/?p=9493#comment-6340 Interesting, I got a sell signal on my weekly Trans indicator today; none of the other indices did, although they may soon follow; and the trans have not confirmed the Indu recovery highs Interesting, I got a sell signal on my weekly Trans indicator today; none of the other indices did, although they may soon follow; and the trans have not confirmed the Indu recovery highs

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