Freightways - FRE

[willy_wonker]

What a beautiful stock and a beautiful graph.

Funny how there were so many negative comments on this stock. Dont follow the crowd and you will make money in the long term. The writing is on the wall.

[willy_wonker]

quote:Originally posted by Nightmare


You are very quiet, Willy Wonker now that the share price is $2.08 and dropping.


Buying more, are we? []

Yes I did and laughing all the way to the bank and in your face.

[lambton]

Nothing personal or negaticve about the coy. My view is beware that actions of one investor who's now beyond 10% on this stock. When the only real buyer decides enough is enough or wants out, then the price can only go one way, and that's straight down.
Would have to be one hell of an increase in earnings to bring the P/E on FRE back to reality. Is does someone know something hence the current interest?

[Prophet]

The interest in the stock must surely be partly driven by the broker view (First NZ Capital) estimates that profit will be some 20% at 21M above profit forecast in the IPO prospectus .

I also note that the Cullen fund has this stock as one of its top 10 holdings in NZ.

You've got to love a business that's consistently turned single digit revenue growth into solid double digit earnings growth over a long period.

[Lawso]

Lambton: I think you'll find that that "unreal" P/E - 36.69 in today's paper, and the pathetic yield, reported as 3.42% - are based on only the half-year figures. Chances are that when the year's result comes out the P/E will roughly halve and the yield % double. I was misled too until someone put me right. The people who do the share tables should differentiate such figures with an asterisk or something.

[lambton]

Thanks Lawso - if P/E gets below 15 with 30 June profit then I must concede its good value. However I still have a problem knowing that Fisher Funds have just gone beyond 10% (no doubt using some of our money thru the Cullen fund) which must have had a bearing on the rapid increase in price. Nice for your fund stats tho.
Something tells me just to be careful on this one. As I said earlier have made good profits having bought in at $1.60 and exited progressively up to curent prices. Have some to go but not a huge exposure to keep me awake at night.

[Long Strangle]

Lanbton - PE is approx. 10x core 05 earnings. The information is there, you only need to look at it. LS

[lambton]

05 earnings - are they there or is it pie in the sky.
Who knows. In the meantime the P/E is not 10x

[willy_wonker]

Lambton, check with your broker if you ar not sure about the numbers. The brokering firm usually have the latest numbers on the company. The market is factoring a good result for FRE. FRE has delivered so far, but will they deliver on the next one is a guess.

It is a concern Fisher Funds holds over 10%. Will hate to see when they start selling. But then Willy is not a greedy person and will take profit when the time is right.

[lambton]

Thanks Willy. Will do so.