Replies to post #9530 on AVEW Holdings Inc. (AVEW)

[fenian32]

I fully expend them to raise funds. That is why they are going public in the first place. They have stated they are planning acquisitions once merger is complete. There will be plenty smaller companies that they can acquire to expand and reduce there costs.
I dont expect fuel prices to stay this high forever. I think its an ideal time to go looking for struggling smaller companies.

[DesertSon]

I think JPT is going public to access capital to acquire some of their struggling competition. This will mean dilution, no doubt. But if it is done right and some synergies are created, this would be huge. Remember, the insiders at JPT don't want their holdings to tank - I mean, somebody will own the new shares, right?

[ordinarydude]

"They may have had fixed contracts that are killing them due to fuel increases."

Despite the fuel problem plaguing the trucking industry, I have serious doubts as to whether it's really a huge problem for JPT to renegotiate their customer contracts. Shippers/logistics companies are having to resort to fuel absortion so they can get capacity. Some trucking companies that I have seen, in fact, are going back to their customers asking for more fuel---and mind you, many of their customers are actually paying it (grudingly). Why do you think the Federal Reserve (among everyone else) is so worried about inflation?

Anyway JPT is a temp controlled company. There aren't too many sizeable "reefer" (refrigerated trailer) based companies here in the United States---so they are prized for their extreme value (especially during peak produce season---which, by the way, started about a few weeks ago). People still need to get produce, meat, frozen desserts, protected shipments, etc to the market---even in slow times.....

I don't think, IMO, that JPT partipating in a (possible) RM just to stay bouyant in an industry being decimated by the rapid rise of diesel fuel rates. HOWEVER, I can see how Jim Palmer may want to raise some capital to partially offset fuel costs---but I don't think that is the primary reason why JPT is partnering with AVWI here. (JPT may need the money to open up another terminal? Buy more fuel efficient trucks? Perhaps upgrade their computer software system---or maybe they simply need liquidity--just in case???)

Had this company be a REGULAR otr company---then I would have my worries---but as I mentioned several times I really don't think this company is in any danger. We will, naturally, soon find out one way or another....

All of this of course is just my opinion.

[flaflyersfan]

DERBENSKI, exactly. $70 million in revenues is the battle cry;

Reality says that part of the LOI is a $250,000 loan to JPT. Going public to survive and making common shareholders pay for it. AVWI must release JPTs financials before the deal is done and as you mentioned what happens when the truth comes out in the 8-K. I hope people do not get greedy and know any gains here are soon to be short-lived.

Good luck.