Transport and logistics bellwether stock Mainfreight is due for a "material decline" in profitability for the first half of the year, reflecting global customer destocking, Forsyth Barr says.
In a research note ahead of this Thursday's interim results to September, the investment house said it expects to see volumes well down on the back of the weaker global freight environment.
Why so pessimistic? Current downturn is mainly due to companies reducing the buffer they did build up during Covid. Just check how big these buffers are, and than you know when the shipping industry will go up again.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Last numerous HYs MFT has outperformed estimates of the street ...Current consensus estimate is $ 1.19 ...fingers crossed
But all can expect very candid and honest update about future .
IMHO most investor friendly and straight talker company ...India operations already on with first operational office in Mumbai
What ever the short term brings ...most positive about MFT longer term ...wont be surprised it exceeds my expectations ...which are only double its SP in next 3 years ...
No in between buddy ...where ever is the bottom now ...which will be soon ...most likely it will bottom out tomorrow ....wont be surprised it closes big up after opening weak on results !!!
A small-ish shipping company with sea- and land freight operations in North Atlantic (Europe - USA) which I hold a few shares in, has just reported Q3.
Thought I'd share this here for a fun comparison for a different part of the World but MFT is heavily involved in Europe and USA, so it may give us some idea on what to expect from that part of our operation.
Blaming drop in international freight pricing and a significant drop in volume in Q3..
But interesting comment was that input costs, i.e. operational costs have gone down 31% as well, due to cheaper pricing of contracted freight services.
Sorry for the formatting above. Not sure what has happened. Looks totally different when I try to edit it. The two percentage numbers are for Q3 and YTD (first 3 quarters)
Originally Posted by winner69
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