Transports are “el fuego”. We have found a name that is playing catch up and the shorts are all over. This scenario sets the stage for a nice short squeeze.
The name is Arkansas Best (ABFS) which is a trucker. Estimates are a loss of -$0.32 for 2012 and a profit of $0.57 for 2013. We love this type of earnings growth from negative to positive and the P/E goes to 19. One has to be out of their mind to short this name.
Moreover, there are 2 Strong Buys, 0 Buys and 12 Holds. That means lots of room for upgrades. The stock is worth $19.87 in a buyout as that is the upper bound in the Ativo ranking system. The Ativo Rank is a CFROI rank that Holt copied and is now used by the world thanks to Credit Suisse’s purchase of Holt several years ago. Therefore, the institutions know this is a cheap name.
The Erlanger Short Ratio is 5.38 with an Erlanger Short Intensity of 78% over the past five years. Let the squeeze begin as it just moved through its 200 day moving average as well.