]> SA Advisory

S. A. Advisory's Undervalued Hotline
1-900-990-0909 Ext. 192

Keep on Truckin' PST Vans, Inc. (NASDAQ PSTV) Current Price $7.00
We initially recommended PSTV via our 900# on June 27, 1995 @ $6.50/share.
The company is a truckload carrier focused on serving three markets in the United States: transcontinental, intra-west and Midwest-southeast. PSTV was brought public by Alex, Brown & Son and Wertheim Schroder & Co. during March of 1995 at $15.00/share. The IPO was for 2.1 million shares, which after the offering 4.2 million shares were outstanding.
PST Van crashed through numerous stop signs on its way to $6 3/8 due on earnings estimate reduction for fiscal 95. Due to excess rain in California as well as in the intermountain states during the spring, fruits and vegetables did not grow that well, so anticipated revenue and earnings did not materialize. On or about June 20, earnings estimates were lowered to $.95 for fiscal 95 and $1.37 for fiscal 96.
Since PSTV had very little exposure in the public market place and when the syndicate group that owned PSTV decided to unload their shares at a rate faster than a radar gun looking for speeders, the stock deflated.
We at S. A. Advisory hate new issues, but love them, especially when they become distressed and their emergency blinkers start vibrating.
During fiscal 94 PSTV had revenues of $136 mil and earnings/share of $1.66. We anticipate that during fiscal 95 revenues should exceed $130 mil and earnings/share should equal .95. During fiscal 96 revenues should rebound to $172 mil and earnings/share should equal $1.37. Based upon these assumptions, in addition to other fundamental variables being considered, shares of PSTV should be accumulated. As of March 31, 1995, the stated book value was $6.47 net, tangible book value was $4.41. At present share price of $7.00, it is easy to see that PSTV trades at slightly above stated book and about 50% above tangible book. A relatively undervalued situation when compared to its peers. (Note: first quarter typically weakest while third and fourth strongest. We assume that second and third will be lower than normal due to weather scenario).
The PSR value also indicates extreme undervaluation. Based upon fiscal 94 and fiscal 95E (used $7.00/share value) our PSR value for 94 and 95, respectively, comes in at .21 and .22. When examining PE, once again PSTV looks extremely attractive. If we assume a share price of $7.00 and develop a PE value for estimated fiscal 95 and fiscal 96, respectively, using our values of $.95 and $1.37, a very low PE value surfaces, that is 7.3x and 5.1x.
When you consider that PSTV has an experienced management team, sophisticated operating systems, efficient network of four terminals, modern standardized fleet and fundamentally undervalued based upon P/B, PE and PSR, one would have to wonder why this stock isn't at least $10.00. The simple answer is that very few brokerage firms follow the stock and the ones that do follow it have sold it. They had a buy recommendation on it at $15.00 which was somewhat pricy and now that it is cheap at $7.00, they have a hold on it, when it should be a BUY.

S. A. Advisory has hopped on PSTV for the ride and expects to profit quite handsomely. We will monitor it in our 900# portfolio for a percentage gain performance. Broker contact: Greg Nelson at 1-800-453-9408. Corporate: 1-801-975-2500.

Select Financial Data - December 31
				Year End	First Quarter
		1994A	1995E	1996E	1995E	19964
Revenue		136 mil	130 mil	172 mil	36 mil	31 mil
Net Income		1.66	.94	1.37	.12	.05

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