Egl Inc. is a company that works for other companies I like providing supply chain management to the transportation industry and the people who use it.
If this sounds like a big market, it is and these guys are the swiss army knife of the industry. Their 25% growth is outpacing their earnings but that is very normal for a service company. They got tapped for overbilling the government early this month and the stock pulled back from its high of $39 but it bounced off $35.69 on Tuesday and looks to be heading back up.
I like the very cheap May $30 calls for $8.50, a $1 premium as you can sell the Jan $40s against them for .80 for an immediate 10% discount with $3 of cushion before you are called away. I’m not going to sell the $40s right away as I would like to get out of this trade for $10 without worrying about next month but I will keep my options open on this trade!
