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.If you enjoy the content at iBankCoin, please follow us on Twitter