Freightways - FRE

[Seti]

While its true we have disputed 1 or 2 the criteria for freight was established a long time ago and they are at pains to point out they are simply enforcing the terms of carriage. This is only positive for NZC as their clients are forced to use the correct number of tickets or incur retail costs. Our firm spends approx $600,000 per annum on freight and NZC still has the cost/effiency/coverage network of any co and we have no choice but to continue with them.

[willy_wonker]

Thanks for the info Seti.

Goes to confirm that the courier market is healthy.

Seti ask them for proof of account if they have not still got the parcell or informed you at pick up time they have not got a leg to stand on. I can not see them refusing to cart your freight. This is what most big firms would do, require proof of debt.

[Happy]

Good upwards movement in the price last couple of days. Looks like getting back to the value pre the sell down by ABN.

[willy_wonker]

$2.30 + a 5.85 cent div

[Phaedrus]

Belg,
Over the last month or so FRE has been forming a symmetrical triangle. Statistically, the breakout from this formation is more likely to be upwards, in that 64% do, vs 36% breaking downwards. Keep in mind though that this is not too much removed from a 50/50 split that has no predictive value whatsoever and is no better than tossing a coin.
The most prudent course of action here is to wait for the breakout (up or down) then act accordingly.
The chart below includes todays price as at 1230.

[Prophet]

Phaedrus - We are just about a month on from your last post on FRE. My take is that the chart must be nearing its breakout if not already. Whats your call on the chart now?

Do you have any info on the likely size of the breakout, my limited understanding of TA is that the size of the formation defines the size of the breakout.

Thanks in advance.

[Lawso]

I've been taking a critical look at my FRE holding and have just read the posts above. There doesn' yet seem to be the breakout that Phaedrus has been wating for.

It's a good solid business of the kind my portfolio is full of. But it doesn't seem to be going anywhere lately. P/E is very high @ 34.24 and yield is a miserable 3.67%. I've been in FRE since mid-'01 and hold a decent parcel that has cost an average 179c. Can't help thinking I should take the profit and do better with the money somewhere else.
Grateful for any comments/suggestions. TIA (thanks in advance).

[willy_wonker]

Willy says a profit is a profit and you cant pick the top or bottom.

[Liberty]

"There doesn' yet seem to be the breakout that Phaedrus has been wating for."

Lawso:

The chart above clearly shows that a rise above 232 would have been a breakout above the symmetrical triangle formation. FRE current price is 238. The breakout actually occurred on Tuesday, with the 5 cent rise to 237.

An signal to buy, I would have thought, not to sell.