Description

Consolidated Freightways Corporation is a holding company that primarily provides less-than-truckload transportation and supply chain management services throughout the United States and Canada, as well as in Mexico through a joint venture, and international freight services between the United States and more than 80 countries.

For the six months ended 6/00, revenues rose 3% to $1.18 billion. Net loss totalled $2.9 million vs. an income of $9.3 million. Revenues reflect rate increases, a fuel surcharge and a change in freight profile. Earnings were offset by a tax liability settlement charge.

The stock now trades near its lowest level since its spinoff from CNF Transportation in 1996, It seems the company concurs as union members and management have recently stepped up purchases of CFWY shares, giving employees a 5.2% ownership stake and Consolidated announced stock repurchase authorization. The industry is showing sign of improvement.

CFWY closed at $4.375 today with a book value of $12. Insiders own 48%. Institutional selling is showing sign of drying up. The chat shows a base was built around $4 and is slowly trending up.

I rate CFWY a buy as a good value play.

Catalyst

Stock repurchase plan, chat trending up will discourage institutional selling.