Pacer International, Inc. (PACR)

Good grief, getting taken here with -66 pts towards the end of July '09. Year over Year its down to $1.85 today from over $20, and 6-month down from over $10. Obviously, they're losing lots of money - several time the current price of late. Little digging into some ratios from Thomson-Reuters and a clue or two I find.
- Price ratios: paying pennies on the dollar for sales, paying 2/3 of book value; both ratios well below industry and even further below sector
- Financial ratios: they are liquid with 1.5 times more current assets than current liabilities; the key to their plunge of recent is in the debt-to-equity ratios which at 85 and 93 for long-term debt/equity and total debt/equity, respectively, indicate tremendous leverage
- Return ratios: This leverage is also reflected in productivity with 5-year averages for Return on Assets, Return on Investment, and Return on Equity all around 2.5 times the industry average

THE TAKE...1) should be safe from bankruptcy; 2) logistics and transportation provider for leading companies, therefore sales should rebound in line with broader economy; 3) current losses are large but due largely to "unusual expenses" incurred in 4Q2008 and 1Q2009 of $200 mill and $88 mill, respectively - excluding these 4Q2008 operating income was approximately $18 mill which would have yielded a pre-tax profit of about $17.5 mill, and in 1Q2009 excluding one-time charge-off operating income was about -$23.5 mill - not good but nowhere close to as bad as reported; 4) with such high leverage ratios the effect of losses on equity are magnified, as will be the effect of *future* profits