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) 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 2009
