Sunday, January 19, 2020

XPO Logistics Shifts Gears Yet Again

Is there really any overarching plan in place at XPO Logistics (XPO)? I ask that because this company has shifted gears so abruptly so many times over the years, that transmission has to be pretty well stripped by now. First the company was going to be a roll-up of asset-light logistics services companies … then it became decidedly more asset heavy. And now management apparently is looking to (or at least willing to consider) auction off everything but the U.S. less-than-truckload business.

I shouldn’t complain – these shares are up 75% from my bullish call back in June (and were up about 50% before the announcement of the strategic review). And you know, if the overarching plan is to create maximal value for shareholders by whatever legal means necessary, that’s not so bad. Either way, with break-up values in excess of $100/share now in play and no real sense of what the long-term strategy is now, I can’t say I’m as bullish on the shares now.

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XPO Logistics Shifts Gears Yet Again

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