News that Mainfreight Ltd [MFT.NZX] has bought European logistics company Wim Bosman Group has, in logistical terms, sent the price of Mainfreight shares into destinations previously uncharted.
The share price almost hit the magical 9 buck mark, topping in intra trading today at $8.95 but finishing up 23c or 2.3% to close at an all-time high of $8.82.
The stock has risen almost 9% in two days since the news and by more than 10% over the last week.
MFT shares have risen by around 14% in 2011 and are off 52 week 2010 lows of $5.85.
The thing is, as good as the acquisition is for Mainfreight, and I believe it is a good move, the share price really has gotten away from the realities of the short term benefit for the company.
Long term the share price clearly should increase based on how well the new addition fits into the company and how much profit it makes but short term the market really has overreacted like Charlie Sheen in a room full of cocaine, hookers and the creator of Two and a Half Men.
If you are looking for the short term the share price must be close to a short term peak and long term best be patient, there are more tough times ahead that could hobble the stock in this good company.
Buy on weakness below 8 bucks.
Share Price Alert
The Warehouse Group Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
Fletcher Building Ltd
Restaurant Brands Ltd
Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd
Mainfreight @ Share Investor
Mainfreight's European Aquisition 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
 | 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 Edition by Warren E. Buffett Buy new: $30.40 / Used from: $169.48 Usually ships in 24 hours |
c Share Investor 2011
No comments:
Post a Comment
Comment on Share Investor Stuff