Landon Capital

December 21, 2022, 14:56 GMT

Transportation & Logistics Systems Inc. is Executing: However, the Market Hasn’t Noticed Yet

Transportation & Logistics Systems Inc. (OTCMKTS:TLSS)

ATLANTA, GA, US, December 21, 2022 / — The transportation and logistics market aren’t highlighted enough as a talking point in the media. It’s by far one of the largest markets in the US and globally. The logistics industry ranges between $8 trillion and $12 trillion annually, calculated as a percentage of GDP. The U.S. attributes up to 10% of its annual GDP to the logistics industry — roughly $2 trillion in 2019. Logistics transactions can be simple two-party deals wherein a manufacturer produces a good and ships it directly to a final destination for consumption. However, transactions can also be more complex, with many parties offering one or more key functions, like sourcing, manufacturing, handling, inventory, transportation, warehousing, etc.

Transportation and Logistics Systems, Inc. (OTC PINK: TLSS) specializes in these subsectors and operates through its wholly owned subsidiaries as a full-service logistics and transportation company. They are based in the New York Tri-State area, which is one of the largest shipping hubs in the world.

Servicing this niche, TLSS’s CEO, Sebastian Giordano has worked to put this company in the best position for success.

Since he has come on board, he has taken the company from $30 million in debt to wiping that debt clean off the books and made two acquisitions this year. He has made it abundantly clear that he is on the hunt for more.

Prior to 2020, there was a steady decline in the warehousing and storage subsectors. But, over the past two years, we have seen that the warehousing market has reversed and there is a growing demand for third party logistics providers.

Now that the market has pivoted, the increase in demand for warehousing as well as the opportunity for third party logistics are good indicators for the future of this industry. Furthermore, Sebastian understands market trends, which is why, through their recent acquisitions, they have expanded from a single 13,000 square foot warehouse to four locations, with more than 300,000 square feet, as well as expanding their own fleet of tractors, trailers, and and other power, while utilizing their own network of employed drivers.

We believe that (OTC PINK: TLSS) is undervalued just by looking at their comparable examples in the market, Radiant Logistics, Inc. (Nasdaq: RLGT) and Janel Corporation (OTCMKTS: JANL). Both companies, sitting at market capitalizations of about $235 million and $45 million and enterprise values of $302 million and $83 million, respectively.

Comparatively, their market capitalization is valued comparably relative to their enterprise value. Similarly, TLSS posts a congruent ratio to the companies mentioned, but also falls in between them when looking at price to earnings.

Despite these corresponding data points, TLSS is valued at fractions of a cent per share due to their float pool and perceived debt. Overall, the market does not currently perceive this company at its true value.

Safe Harbor Statement

This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. Landon Capital received no direct compensation related to this release, although Landon Capital does hold a position in the company covered above. This release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Actual results may differ materially from those stated or implied in such forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” and “would” or similar words. We assume no obligation to update the information included in this press release, whether because of new information, future events or otherwise.

Nathan Culotta
Landon Capital
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