It is rare to see a day-two run on massive volume that grows even more than on the day the news came out, but that is what we are seeing today in shares of Express-1 Expedited Solutions Inc. (AMEX: XPO). We wanted to dig in here to see if the run can continue.
Late in the day on Wednesday we have already seen over 1.47 million shares trade and the gain is almost 16% at $2.94. Shares also hit a new 52-week high today and the new range for the last year is $.19 to $3.13. This appears to actually have been new all-time highs.
On Tuesday, June 14, 2011, Express-1 shares closed at $2.53 on 600,400 shares versus a $2.19 close on Monday.
What is odd is that even after the huge move, the market cap is only about $96 million.
What kicked off the move was a private equity firm’s founder taking over as CEO. Reuters reported on Tuesday, “Entrepreneur and investor Bradley Jacobs and his private equity firm are to invest $150 million in Express-1 Expedited Solutions Inc., a third-party logistics provider, and aim to build “a multibillion-dollar” business over the next several years.”
United Rentals, Inc. (NYSE: URI) was founded by Bradley Jacobs and the hope is that he can create a repeat performance.
JON C. OGG
3:30 PM EST