Rand Logistics, Inc. (NASDAQ:RLOG)
Rand Logistics, Inc. (NASDAQ:RLOG), headquartered in Jersey City, New Jersey, offers bulk freight shipping services throughout the U.S. Great Lakes region. Through its subsidiaries, the Rand Logistics operates ten self-unloading bulk carriers, including eight River Class vessels and one River Class integrated tug/barge unit, and three conventional bulk carriers.
Rand Logistics Competitive Advantage
Rand Logistics, Inc. (NASDAQ:RLOG) has a competitive advantage that is rooted in U.S. and Canadian legislation. Due to the provisions of the Jones Act and the Canadian Marine Act, Rand Logistics is the only ship carrier able to offer significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes. The Jones Act mandates that only ships that are built, crewed, and owned by U.S. citizens can operate between U.S. ports. The Canada Marine Act requires Canadian commissioned ships to operate between Canadian ports.
RLOG stock has not traded above $1 since mid-February, 2017. Technically, this puts the company in violation of NASDAQ Rule 5550(a)(2) which states that “(a) Continued Listing Requirements for Primary Equity Securities: (2) Minimum bid price of at least $1 per share.”
Year-to-date, RLOG shares have lost over 50% of their value. But in the last quarter, shares have rebounded and gained almost 45%. The stock’s 52-week low of $0.19 was established in July.
While RLOG stock has rebounded recently, some observers still believe there are issues with the finances that will be very challenging for the company to overcome. According to published accounts, Rand Logistics, Inc. (NASDAQ:RLOG) has a current ratio of 0.10. The current ratio measures whether or not a firm has enough resources to cover its debts over the next year. When a current ratio is below 1, then the company may have problems meeting its short-term obligations (current liabilities).
However, reports show that at least one person with a large (10+%) stake in the company has been purchasing shares since early August. The consensus, one-year price target for RLOG is $2.00.
Sales took a big hit for FY2017 when the company reported a figure of $115.5 million – well below the 2016 figure of $148.4 million. FY2017 was also the largest per share loss the company has posted since 2012. For FY2017 they reported a loss of (-$1.08) – more than treble the loss of 2016.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.