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

Stock of the Week Series

Fisher & Paykel Healthcare
Xero Ltd
Auckland International Airport
Sky City Entertainment Group
Burger Fuel Worldwide
Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances


Mainfreight @ Share Investor

Questions to Mainfreight's MD Don Braid
I'm Buying: Mainfreight Management delivers the goods
Mainfreight Annual Report Packs a Punch
Analysis - Mainfreight Ltd: FY Profit to 31/03/09
Mainfreight VS KiwiRail: The Sequel
Long VS Short: Mainfreight Ltd
Why did you buy that stock? [Mainfreight Ltd]
Mainfreight 2008 Annual report worth reading
KiwiRail will cost Mainfreight
Mainfreight keeps on truckin
A rare breed
Share Investor's 2008 stock picks

Discuss this Company @ Share Investor Forum


Related Amazon Reading


The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Collins Business Essentials)The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Collins Business Essentials) by Benjamin Graham
Buy new: $13.25 / Used from: $9.24
Usually ships in 24 hours
The Essays of Warren Buffett: Lessons for Corporate America, Fourth EditionThe Essays of Warren Buffett: Lessons for Corporate America, Fourth Edition by Warren E. Buffett
Buy new: $30.40 / Used from: $169.48
Usually ships in 24 hours






c Share Investor 2009

2 comments:

  1. Just browsing your portfolio, I noticed that you had an extraordinarily large position on SKC compared to any of your other positions. 43% of portfolio. Are those numbers correct?

    36915 x $3.30 = $121,819

    Seems you are putting an unbalanced allocation towards one stock. Not necessarily a bad thing, just noticed that this is not inline with you other smaller positions.

    I calculated that your portfolio is worth $282,389 in total including that rather large SKC position.

    ReplyDelete
  2. Yep that is my position on SKC and I would have done alot better if that was my only stock.

    My Long Term portfolio is currently valued at just over $320,000. There have been some additions of Mainfreight and WHS shares that may account for that.

    ReplyDelete

Comment on Share Investor Stuff