Mainfreight

[Hammar]

I thought that I understood the market BUT I am totally confused to how you can post a terrible result and then stand back & watch the share price fly. Can anyone enlighten me.

[Snow Leopard]

Because at this moment THE FUTURE looks good, this financial years result will be reasonable and next years is expected to be excellent.

[limegreen]

If you follow this thread, you may find some suggestions for why this is.

http://www.sharetrader.co.nz/topic.a...92&whichpage=2

quote:I thought that I understood the market BUT I am totally confused to how you can post a terrible result and then stand back & watch the share price fly.

Somewhat cheekily, I'd suggest that understanding the market would suggest that the bottom line result is only a small component. Thus, while they just posted a "terrible" result, they have also just entered the top 50 index, and have been on the buying list of some funds. Also, their profit was up, not including owens. Thus, assuming that the market believes there is room for the owens result to improve, it's not terrible at all...

DISC: MFT

[Nevl]

This is big news

WELLINGTON (Dow Jones)--Freight company Mainfreight Ltd. (MFT.NZ) said Monday that it has entered into a sale and purchase agreement to buy Netherlands-based Wim Bosman Group.
The initial purchase price is EUR110 million or approximately NZ$205 million (US$154 million), Mainfreight said in a release. The purchase will be funded by bank debt rather than through an equity raising "due to significant balance sheet capacity and the lower cost of debt relative to the cost of equity," it said.
Following the acquisition, Mainfreight's gearing ratio of net debt to net debt plus equity is expected to be approximately 48%. The current gearing ratio pre acquisition is approximately 17.5%.
Mainfreight said the purchase is subject to a number of conditions including shareholder approval by special resolution. The completion date is scheduled for April 1 unless a deferral is required.

[CJ]

There is a much more comprehensive thread on MFT here: http://www.sharetrader.co.nz/showthread.php?760-MFT

I suggest that one is used going forward.

[skid]

You would have to think twice about betting the farm on a transport co.,when your starting to think twice about taking a longesh drive in the family car with these delightful petrol prices.