Description

Celadon Is Quadrupled Barrelled Special Situation.As A Traditional Cyclical Trucker It Has Potential To Earn 80 Cents In Upcoming 2002/2003 Year Without All The Rest Of The Story. Just Original Core Company. Trading Over $30 Two Years Ago,It Was A Nafta Play. Finally Nafta Was Approved And Goes Into Effect June. And The Potential To Cldn Is Enormous. About 160 Million Miles Are Mexico/Us Miles That Celadon Runs. Over The Next 3 Years, Co. Will Swap Mexican Drivers For Us Counterparts Saving 50% On Labor Cost On These Miles. The Numbers:160 Million Miles At 20 Cents Results In 30 Million Doolars, Taxed At 40% Results In Bottomline Of 18 Million Or 2.33 Extra Eps Which Could Take 3 Years Or So To Rollout.

In A Recent Conference Call,The Pres Dimensioned The Savings At 15 Cents Qtly Or 60 Cents On The Rollout Of The Change During First Full Year.
But There Is More. Recently Co. Cherry Picked Trucking Assets From A Bankruptcy As Well As Picking Up 48 New Customers With Potentially 50 Million Incremental Sales With Only Extra Driver/Oil/Insurance Costs. Existing Cldn Needs To Add Little To Run This Incremental New Business. Potential Bonanza 6 Million After Tax Dollars Or Another 80 Cents.
But You Want More. Ok. We Will Throw In A Successful B2b Trucking Site Pedaling Gasoline/Tires/Etc Thru Three Of The Countries Leading Truck Stops. Serving Over 300k Truckers 4 Cents Per Gallon- One Penny Goes To Co As A Royalty. Truckersb2b Did 1.6 Million In Revs In 1 Qtr(Up 66%) On Gross Sales Over 40 Million. Ebidta Annualized In 1 Qtr Was 1.3 Million. Ge Capital Owns 10% And Cldn Owns 80%.Would Expect Spinoff In Year Or Two.
Potential Eps For 2002/2003 Should Be $1.50 Or Higher Compared To Street Est Of .85. Following Year Would Add Additional 60 Cents Due To Ongoing Mexico Rollout.

Catalyst

Cyclical Play+Bankruptcy Bargain Purchase+Nafta Play+Likely Spinoff.