June 30, 2004
SpeculatingStocks.com Stock Pick: Velocity Express Corporation (VEXP)
Stock Price: $0.40 (short-term strong buy)
Velocity Express Corporation operates the largest nationwide network of customized, time critical delivery solutions. The company provides a proprietary package tracking system that allows its customers to control their package from start to finish.
Velocity Express is the main competitor to Fed Ex and UPS, who have not experienced much competition except between themselves. Velocity Express may find its niche with customers who want greater control and reliability throughout the supply chain.
The proprietary technology involved is called Velocity Smartrac, which currently tracks over 300,000 packages. If a package delivery is short, over, or wrong, the drivers hand held device stops the activity and gives commands until completed correctly. This system has reduced delivery errors by 98%.
VEXP hit a low of $0.30 in May, and is now starting to trend up again. VEXP broke out today to $0.58 on heavy volume of over 600,000. The last time VEXP had volume like this it jumped to over $1.00.
SpeculatingStocks.com Target Price: VEXP shares should continue to trend towards $1.00.