Out Fox The $treet

Having never heard of XPO Logistics (XPO) , this proclamation from Jefferies (JEF) certainly caught our attention. It is very rare for an analyst to step out on a limb and make such a announcement. Whether realistic or not analysts very rarely provide price targets meaningfully above or below the current price. In all fairness, Jefferies was a joint manager on a recent secondary in March that raised $137M. Maybe their report should just be written off considering the connection. Founded in 1989, XPO Logistics, Inc. is a non-asset based, third-party logistics provider of freight transportation services that uses a network of relationships with ground, sea and air carriers to find the best transportation solutions for its customers. The company offers its services through three distinct business units: expedited transportation (Express-1, Inc.); freight forwarding (Concert Group Logistics, Inc.); and freight brokerage. XPO Logistics serves...

Prior to the collapse last week, MF Global (MF) appeared to be an excellent candidate to take market share in the financial sector. MF was already a respectable commodities trader and primary broker dealer. On top of that, it hired prominent figure John Corzine with experience at both Goldman Sachs (GS) and the political arena to expand into the investment banking sector. The combination provided a catalyst for a what could be a game changer. Unfortunately last week the concept completely collapsed as MF couldn't handle the high leverage of European Soveriegn debt. Debt that likely will payoff as expected, but debt that unfortunately scared the market into a panic. Lesson revisited that perception trumps reality at least in the short run. Last week we wrote about the thesis for buying into MF prior to the earnings report and even after [See Wild Times at MF Global Holdings ] At the time, the trade seemed to have a good risk/reward thesis. The stock had already been cut to h...