Thursday, December 23, 2010

Stock of the Week: Mainfreight Ltd



Mainfreight Ltd [MFT.NZX] has had a simply outstanding run in its share price over 2010 (see YTD chart above) and especially in the last month or so. The stock started 2010 at just over $5.55 and closed trading yesterday at $7.96. The last month has seen the stock rise from $7.25. (see one month chart below)It has come off a low of $3.25 in early 2009.


The stock is now back at levels that it was trading in early 2007 (see five year chart below) and few NZX stocks have managed to do that pre the October 2008 stockmarket crash.

LinkI bought my initial shareholding at $7.96 and $8 4 years ago (clearly picked the wrong time there) and my most recent addition in 2009 for $4.20. To me it looks like the stock price has run away with itself.

The company has largely recovered from the recession but we will have to see a couple of years of sustained growth before the expectations of the market match the share price.

Beware before you buy !

I see good long-term value based on the current share price, otherwise I wouldn't have bought it at its peak 3 - 4 years ago (there was also a very big dividend involved in my buying that stock as well) but you could well get it cheaper at some stage during 2011 as the market realises it might well have overreacted.

Quality companies like this though always rise to the top.


Link

Disc I own MFT shares in the Share Investor Portfolio


Stock of the Week Series


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Fisher & Paykel Healthcare Ltd
Sky City Entertainment Group Ltd
Reprise 5: Contact Energy Ltd
Reprise 4: Contact Energy Ltd
Reprise 3: Contact Energy Ltd
Delegats Group Ltd
Reprise 2 : Contact Energy Ltd
Reprise: Contact Energy Ltd
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NZ Refining
Ryman Healthcare
Mainfreight Ltd
Fisher & Paykel Healthcare
Xero Ltd
Auckland International Airport
Sky City Entertainment Group
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Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances
Reprise: NZ Refining Ltd

Mainfreight @ Share Investor

Read the MFT 2011 FY Presentation

Is Mainfreight Worth 20 Bucks Plus a Share?
Share Price Alert: Mainfreight Ltd 2
Mainfreight's European Acquisition a Good Move
Share Price Alert: Mainfreight Ltd
Investing in the Stockmarket: Timing your Purchase
Stock of the Week: Mainfreight Ltd
Mainfreight Ltd: 2011 1st quarter Profit Analysis
VIDEO: Don Braid with Paul Homes on the Economy
Mainfreight Ltd: Full Year 2010 Profit Analysis
Long Term View: Mainfreight Ltd
Share Investor Interview: Mainfreight's MD Don Braid
Stock of the Week: Mainfreight Ltd
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 MFT @ Share Investor Forum
Download Mainfreight Company Reports



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