As economies unlock and demand picks up, companies across the board are flagging input cost increases and struggles in sourcing parts.

This is a global logistical issue - so it stands to reason that the logistics companies themselves might be benefitting. This train of thought brought the Club to Xpediator (LON:XPD) - a value-momentum stock that has repeatedly flagged positive trading conditions.

It’s a smaller pan-European logistics company, but one that hopes to use its expertise in Central and Eastern Europe (CEE) markets to make attractive acquisitions. In fact the group’s founder, 27% shareholder and now chairman is stepping back from the CEO position so that he can use his multi-decade insight to kickstart an M&A strategy. The group alludes to a healthy pipeline of acquisition opportunities.

And, with Brexit currently making for greater logistical and customs complexity, it seems as though Xpediator is well placed to help firms navigate this new landscape.

Numerous tailwinds then, but is there enough differentiation here to let the firm thrive in what can be a brutal and low margin industry? And is there a sustainable long term growth opportunity beyond the current conditions?

Xpediator was pitched to the Club on July the 6th when shares traded at 77p.



About the Stock:

Xpediator is an international freight management company providing logistics and transport support solutions. This can be a tough part of the market to operate in, but supply chain logistics and fulfilment are essential services for most companies.

The group works across the UK and Europe with a particular expertise in Central and Eastern Europe (CEE) countries. These markets are growing at faster rates than the rest of Europe, while logistics itself tends to grow in excess of GDP.


The share price has been strong recently, with a one-year relative strength of +166%, but the StockRank remains high at 95 despite this rerating. Since the pitch, shares have given back some of the gains and trade at 68p at the time of writing.


This is a Speculative Small Cap Super Stock - as such, while the factor profile is encouraging, there are risks around liquidity. You can only reliably purchase around 3,000 shares at prevailing market prices - about £2,000 - and the free float is…

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