Mr. Market has found a new favourable flavour.
Transport and logistics companies usually have slow growth and were hardly featured previously. Not until recently.
First, HARBOUR grabbed the headlines with a highly bullish share price surge on 29 Sep. Mr. Market was highly pleased with HARBOUR's 5th consecutive improving quarter report of profits. Although HARBOUR's share price lost some steam yesterday (09 Oct), yesterday was a rather good day for MAYBULK, POS, and especially FREIGHT, which was among most actively traded stocks yesterday.
These logistics stocks looks like they have broken out from their 6 months resistance line with high volume. Whether the uptrend is intact, we'll have to observe next week's share price movement.
Featured logistics companies:
Apart from the one-off impairment in the 30 June 2013 quarter, HARBOUR performed quite well in the past 10 years. Revenue has increased at a rather steady pace while its dividends have been paid consistently annually too.
This shipping & port company had an erratic 10 year financial performance. The improving prospects of the dry bul market has helped MAYBULK to return to the black in the last 2 quarters.
The National postage company that has deteriorated into a loss-making entity since 2019. Its 4th new CEO in recent 5 years didn't improve Mr. Market's sentiments either. Despite the rise of e-commerce which improved its courier business, it was dragged down by its mail postage business. POS selling below net assets may be deep value investors' pick, though.
This remarkable freight company has clean 40 consecutive quarters of profits, with this FY being the best year. FREIGHT once had a fixed-deposit beating dividend yield, until its incredible share price rise this year that lowered its yield.
Transport & Logistics counters used to be the boring and often forgotten kid in the class. The class is slowly taking notice now.
Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author disclaims all liabilities from readers. The author does not have interest in the stocks listed above.
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Agree with Calvin. When oil prices continuing to spike up, the first to die will be airlines. Transportation and logictic companies definitely going to be affected too. Can't escape unless change to using pipe water.
Largest profit ever for shipping companies
Holland King saying I send people to Holland is the funniest joke I encountered on klse.i3investor.com
You truly are the jester of this website.
Agree with Calvin. This time Calvin thinking is very logical. Higher oil prices will soon haunt all logistics companies.
Then sell logistic and buy oil stocks. Is Destini still a good buy???
Thanks Calvin,agree with you
better buy oil palm.
based on LOGIC yes profitability will be much eroded but based on SENTIMENT transportation theme will be the next hoo-haa
Mr. Market's New Flavour of the Month - ALL stocks lah, not just logistic stocks.
Bcos the mkt is in bull run mode now.
Just close eyes n sapu any stocks U like !
if the business can pickup well together with a little price hike, then can overcome the fuel costs..
Mkt in bull run mode now !
Get in fast now to get esi moni.
The faster the more moni$$$ u get !
Very wrong lah
You don't send people to holland calling for buy on logistic when oil prices are surging up
Crude oil might spike up to USD100 this Cold Winter according to Bank of America
Logistic company will then face night mare of very high fuel cost