Have you noticed lately how quickly people’s emotions are changing day by day? Last week, it was doom and gloom and this week it’s relief that the Fed saved the day.
Everyone is glued to the financial media outlets listening to so-called experts talk about ‘this, that and the other thing’ AFTER the fact. It’s amazing.
Time is money, and your valuable time is better spent listening to what the market is saying.
While everyone is talking about the Fed, recession, unemployment, inflation, etc., something very interesting has appeared on our radar, standing out in these uncertain times: transportation.
Regular readers of the daily “Stocks to Watch” list will have noticed that companies involved in the trucking industry have been showing up on the winners list over the past few days.
Dow Theory followers should keep an eye on the Dow Transports. The index is made up of 20 companies, and four of these companies are in the Trucking Industry. If the index continues to tick up, it won’t be long before pundits and commentators latch onto this story and start quoting Dow Theory experts.
Let’s look at some recent media comments about trucking companies:
- Economic Outlook 11-23-07
A look at the state of the trucking industry, which is a major indicator of economic health, with William Zollars, CEO of YRC Worldwide.
- Fitch Cuts YRC Worldwide to Junk Status 1-4-08
Fitch Ratings cut the investment-grade debt rating of YRC Worldwide Inc., the nation’s largest less-than-truckload carrier, to junk status Friday citing a weakening credit profile amid tough market conditions.
- Bear Stearns upgrades truck sector to market weight on stock depreciation 1-14-08
Shares of truckers rallied Monday after Bear Stearns (NYSE:BSC) upgraded the sector and several big names in the group, citing the underperformance of share prices over the past two years.
- Knight Transportation 4Q profit misses Wall Street forecast 1-23-08
Knight Transportation (NYSE:KNX) Inc. late Wednesday reported fourth-quarter net earnings of $13.8 million, or 16 cents a share, missing the 17-cent mean estimate of analysts polled by Thomson Financial.
- Heartland Express 4Q Profit Falls 15 Pct 1-24-08
Truckload carrier Heartland Express Inc. said Thursday its fourth-quarter profit fell 15 percent on rising fuel costs.
- Con-way profit falls, cites gain in previous year 1-28-08
Trucking and logistics company Con-way Inc on Monday reported a lower quarterly net profit, citing a pretax charge, plus a large gain the previous year from the sale of a joint venture.
- J.B. Hunt 4Q net income above Street view 1-29-08
J.B. Hunt Transport Services Inc. late Tuesday reported fourth-quarter net income of 42 cents a share, above the 39-cent mean estimate of analysts polled by Thomson Financial.
- YRC CEO: U.S. recession odds probably above 50-50 1-30-08
“The odds are now probably better than 50-50 that we will see a textbook definition recession of two consecutive quarters of negative economic growth,” YRC Worldwide Inc Chief Executive Bill Zollars told Reuters in a telephone interview.
Media perception has been pretty negative towards the trucking industry, yet recent price action tells us otherwise. Bear Stearns analyst Edward Wolfe summed it up when he said, “We believe the stocks are heavily shorted, and with sentiment this poor, investors should have several opportunities to cover into weak earnings reports and 2008 guidance.”
Let’s take a look at the price action for some of the bigger trucking companies.
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