Pacific CMA Inc. PAM (AMEX) Industry: Trucking Price as of June 23 - $0.91 Long-term Target - $1.60 - $2.45 PAM coordinates the shipping and the storage of raw materials, supplies, components, and finished goods by air, sea, rail, and road. The company does all this without owning any transportation assets. Instead, it employs a network of commercial carriers. While most of PAM’s customers are in the garment industry, the company manages the transportation of all types of cargo, including refrigerated items, hazardous material, and perishable goods. In the Freight Forwarding Industry, speed and efficiency are mission-critical factors in ensuring profitability. What makes PAM stand-out above the competition? While many of its competitors arrange single-source and multi-source methods of freight forwarding, PAM also maintains warehousing for the import/export, and re-exporting of goods. Over the last number of years, PAM has built its business through the acquisitions of freight forwarders AGI Logistics (2000), and Airgate International (2002). In 2004, the company bought a controlling stake in Singapore-based forwarded AGI Freight. According to tonnage shipped, the Hong Kong region is one of the most active transportation nodes in the world. The company’s Asian headquarters, located in Hong Kong, is the nerve center of PAM’s Chinese operations. With the increase in expected traffic and strong corporate inroads, PAM is uniquely positioned to capitalize on China’s $500 billion market. While China remains a key factor in the company’s operations, it considers other regions of the world, including the remainder of Asia, Europe, Latin America and the Middle East as targets of opportunity. Strategic acquisitions and international inroads have been helping PAM report some very solid fiscal results. In 2004 PAM posted revenues of $100 million; a 36% increase over fiscal 2003. And the momentum has continued into fiscal 2005. For the first quarter ended March 31, the company reported revenues of $25.6 million, a 56% increase over the $16.4 million recorded in the prior-year period. PAM’s net income also improved significantly, from a (loss) in 2004 of ($122,793) to a profit of $62,428 in 2005. Company Chairman Alfred Lam commented, “Based on the increased activity of both air and sea shipments, we are convinced that 2005 will produce significant upturn in revenue and profit.” For full year 2005, PAM's gross revenue is anticipated to reach $125 million, a 25% increase over 2004. Based on solid internal revenue growth and expense control across all business units, an earnings increase is also projected.