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
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c Share Investor 2009
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?
ReplyDelete36915 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.
Yep that is my position on SKC and I would have done alot better if that was my only stock.
ReplyDeleteMy 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.