Replies to post #1 on Celadon Group Inc (CGIP)

[0dd Lot]

Management's opaque accounting has drawn criticism from the shorts: http://seekingalpha.com/article/4011499-celadon-group-sec-inquiries-accounting-issues-liquidity-constraints-point-65-percent-near

Additionally, Covenant Transportation Group released lower than expected guidance which sent all trucking stocks tumbling.


Taking Celadon's numbers at face value, I had previously come up with a $12-18 fair value range, but I haven't had the time to investigate the supposed accounting irregularities.

I have looked into the CSA scores issue, and it is not anything to be worried about yet. They just crossed the thresholds, but there are carriers who have been above those thresholds almost continuously since 2010. As long as they don't completely blow off the fmcsa, their chances of getting an "unsatisfactory" rating are almost zero.