A great post percy and hopefully a reminder to people that MFT is not a shipping company. They are a well managed, globally diversified logistics company. The business they are in is NOT about to slow anytime soon.
Printable View
Think you are more correct in that they are now a logistics company and in fact to the best of my knowledge do virtually none of the activities listed by Percy. They are a good company but their standards are slipping in my more recent dealings with them. e.g. overnight intercity and then almost 7 days to get the local delivery segment done, phone calls taking a long time to be answered, etc
I think percy was pointing out that all the things he mentioned, still need to be transported. MFT provides logistics services for all of that. Thanks for sharing your experience which is always interesting to hear direct. In my industry, we are having same sort of problems (and much worse) as you describe with delays and unreliability, but it is a Worldwide phenomenon.
https://www.nzherald.co.nz/business/...NMSAW4ZILI4KU/
This says at least 3 more years of this inflated freight rates ....so MFT has 2 more years to run if not more . Maybe its most value buy at current SP .
Expect that most of the sea/airfreight is more margin business for MFT from freight forwarding, rather than the super profits being made by shipping company currently. Warehousing probably doing well. Trucking rates haven't inflated anywhere by the same amount - except for the FAF which is driven higher with current pricing.
Isn't trucking/transport more a barometer of economic activity and be a bigger driver of their business??
ANZ Truckometer | NZ economic indicator | ANZ
Agree. These dislocations tend to play out longer than people originally think. It would have been easy to look at last year's run and say it couldn't be repeated and would abate!
I’m thinking MFT good buying at the moment. Craigs have eps of $3.43 YE22 and target price of $95 outperform rating. While I think that the air freight prices will come down the high shipping costs are going to be with us for some time and might be the new normal. Sure there is risk but at a
forward Y22 PE of 23 I see good value and have added to my position.
Was ~ $40 2 years ago before Covid hit. Market is a VERY forward looking beast, a lot more forward looking than many people (myself included) often think and is probably already starting to price in a pretty harsh recession next year with all that implies for freight movements.
Almost every time I have tried over the years to buy in a downtrend and pick the bottom that approach has cost me money.
A good approach for those that want to invest fresh capital here might be to wait for a break up through the 30 day moving average (indicating the possibility of a new uptrend emerging) and put on a half sized position and then the other half if there's a break up through the 100 day MA.
Picking bottoms when there's been a clear breakdown through the 200 day MA is not for the faint hearted !
Good points Beagle. Agree buying on a downtrend is not a good strategy and comes with risk that you overpay. I have been looking at buying into this company for years and it always looked to expensive. It was expensive at $5.00 and now it’s $80. Yes some are saying that the COVID effect will fade and therefore so will the share price. It could also be the new base and an entry point at this level looks attractive to me. It’s a bottom drawer (Sleep well) share that will sit well with my holdings in Apple, Ebos and FPH. One thing I have learnt is that you have to pay for quality. History says that this share will keep increasing so happy to keep long term and get rich slowly, with a degree of safety.