Intriguing IPOs: Proficient Auto Logistics (PAL)

Investors have made substantial returns in LTL trucking, could automotive trucking do the same?

Jean-Léon Gérôme, An Arab Caravan outside a Fortified Town, Egypt, circa 1899, oil on canvas

I’ve said it before, but it bears repeating: Searching for worthwhile investment in IPOs is like trying to find a needle in a pile of bent, busted, or rusty needles. In any given week, there are a bevy of prospectuses for terrible businesses and potentially fraudulent offerings. Reading every IPO prospectus requires a certain amount of masochism.

Maybe I’m anchoring to the dearth of worthwhile companies that went public in 2023, but this year seems to be demonstrably better so far. Sure, there is a fair share of clunkers each week (a micro nuclear reactor on the back of a tractor-trailer? Good luck with that Nano Nuclear Energy). Still, it seems like the frequency of seemingly legitimate businesses and potentially worthwhile investments is higher in recent months.

One intriguing IPO this week is Proficient Auto Logistics (NASDAQ: PAL). The automotive trucking company is seeking to raise about $215 million at the midpoint of its price range for a market capitalization of $360 million.

The bones of a good business appear to be there, but there are certainly some unique challenges related to the IPO and its new life as a public company in the coming quarters.

Let’s dig in.

---

Shoutout to Koyfin for their data and charts. Koyfin has become an integral part of how I screen for, track, and analyze companies. It has made the analysis process much faster thanks to having a decade of data at my fingertips instead of manually going through stacks of quarterly and annual filings.

Up your analysis process by Signing up for Koyfin. Click on the link below and receive 10% off your annual subscription.

Disclaimer: I have an affiliate partnership with Koyfin and receive compensation if you sign up via the link above. It helps me fund this endeavor. I would still recommend using it even if I didn’t have this partnership because it’s an awesome product, but I’d be stupid to turn down a revenue opportunity. You get a discount, Koyfin gets new business, and I get a commission. Win-win-win).