Saturday, September 12, 2009

Stock of the Week: Mainfreight Ltd

Chart forMainfreight Ltd (MFT.NZ)

In this Stock of the Week I am going to look at Mainfreight Ltd [MFT.NZ] a particular favourite of mine because of its superior management and outstanding results over a long period.

While the stock has been substantially cheaper over the last year (see chart above) and it has been at a high of over 8 bucks over the last 2 years, it is still around 40% off that high and that is my overriding reason for including it in this series.

I bought some more in July at $4.20 after watching it plumb the depths of $3.25 months earlier.

At close of market today the stock was up to $5.13 but has been trading under 5 dollars for the last few months.

The stock is still undervalued in my opinion. Its recent profit announcement wasn't a good one but good management has so far kept the deleterious effects of the global logistics slowdown to a minimum.

Long term the company has grown considerably and once the global recession is over this growth should continue as it has done historically.

Until then prospective investors should see the low share price as an opportunity to make their move.

Please keep in mind the stock can be quite volatile because of relatively low turnover and could of course get cheaper from here.

Once again, good luck!

Disclosure: I own MFT shares in the Share Investor Portfolio

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Mainfreight @ Share Investor

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I'm Buying: Mainfreight Management delivers the goods
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Long VS Short: Mainfreight Ltd
Why did you buy that stock? [Mainfreight Ltd]
Mainfreight 2008 Annual report worth reading
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Mainfreight keeps on truckin
A rare breed
Share Investor's 2008 stock picks

Discuss this Company @ Share Investor Forum


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c Share Investor 2009