NEW YORK (AP) - Shares of Celadon Group Inc. fell to a new 52-week low in afternoon trading Friday after an Oppenheimer & Co. analyst cut full-year 2008 and 2009 estimates for the stock, citing a pullback in retail shipments that's hurting the truckload carrier's bottom line.
Analyst Barry Sine said Celadon, along with a majority of the trucking industry, has been hard hit by the slowdown in shipments as retailers are generally ordering less inventory -- likely a culprit of larger economic factors such as the housing slump and subprime worries.
He cut his fiscal 2008 estimate to $1 from $1.20, and his fiscal 2009 expectation to $1.25 from $1.40.
Sine said that despite the weakening economy and the expectation of a continued freight market demand slump, he still sees several factors that bring more value to Celadon.
The first is the Sept. 18 meeting of the Federal Reserve, where its speculated that interest rates may be cut -- alleviating some of the current economic pressure.
The weak economy also allows for a possible takeover of Celadon, the analyst said. Also, with the recent opening of U.S. highways to Mexican trucks, Celadon could become "more attractive" for a takeover as it's the only public U.S. trucking company that owns a Mexican carrier.
Shares of Celadon fell 35 cents, or 2.5 percent, to $13.67 in afternoon trading, after hitting a 52-week low of $13.63 earlier. The stock has traded between $13.93 and $21 in the past year.
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