MFT - Mainfreight. Global Freight & Logistics

[Baaarney]

Interestingly today's trading update includes the following:
- that year-to-date trading, including results from January, February and early March 2020, remains ahead of the prior year.
- China volumes are re-emerging as factories and ports return to normal operations
- Our full year financial results to 31 March 2020 will reflect an improvement on the prior year.

However, no forward looking guidance so potentially rocky times ahead for the 20/21 year, especially in the US business
I will be looking to add over the next few weeks

[Biscuit]

MFT up so far today. Market liked their update. Interesting that a global transport company not seeing much in the way of negative impact yet and looking forward to China re-opening. Similar story to SKL's update. That seems not to fit with the global rolling lock-down.

[BlackPeter]

MFT up so far today. Market liked their update. Interesting that a global transport company not seeing much in the way of negative impact yet and looking forward to China re-opening. Similar story to SKL's update. That seems not to fit with the global rolling lock-down.

People still need stuff, no matter whether this is hand sanitizer, toilet paper, face masks, medication, cellphones or spares for their cars which still break down.

This is great for Freight companies, particularly if people have less other options to get what they want.

Freight companies typically one of the first getting out of a recession ... and the latest fuel prices are just an added bonus for them.

[Biscuit]

People still need stuff, no matter whether this is hand sanitizer, toilet paper, face masks, medication, cellphones or spares for their cars which still break down.

This is great for Freight companies, particularly if people have less other options to get what they want.

Freight companies typically one of the first getting out of a recession ... and the latest fuel prices are just an added bonus for them.

If you have a recession that is primarily a "services recession" that might free up consumer dollars for the non-services producers (if you can't take a vacation to Europe, you'll have plenty of dosh to splash out on a fancy new phone etc). Is it possible that transport and producers are being tarred with the same brush that should perhaps primarily be applied to the service sector?

[BlackPeter]

If you have a recession that is primarily a "services recession" that might free up consumer dollars for the non-services producers (if you can't take a vacation to Europe, you'll have plenty of dosh to splash out on a fancy new phone etc). Is it possible that transport and producers are being tarred with the same brush that should perhaps primarily be applied to the service sector?

There was only one reason shares have been down this morning across the field: PANIC ... and people who panic don't think. Everything looks like a dropout.

I.e. no point in trying to justify or understand individual prices.

I see however - MFT seems to move up again ... maybe I should have bought some more around $28 ... Sigh. But then - well possible that the current market jitter offers more opportunities to come :

[Biscuit]

There was only one reason shares have been down this morning across the field: PANIC ... and people who panic don't think. Everything looks like a dropout.

I.e. no point in trying to justify or understand individual prices.

I see however - MFT seems to move up again ... maybe I should have bought some more around $28 ... Sigh. But then - well possible that the current market jitter offers more opportunities to come :

Yes, hopefully there are better opportunities to come. But, I think it is useful to try to understand what is actually happening and why and therefore which shares are possibly being relatively mis-priced.

[BlackPeter]

Yes, hopefully there are better opportunities to come. But, I think it is useful to try to understand what is actually happening and why and therefore which shares are possibly being relatively mis-priced.

Absolutely. Think about what people want and need, even or particularly during any potential lock down - and access to medication, food, information, electricity and other essentials is probably at the top of the list.

Companies providing above (or are part of the required supply / transport chain) are likely to do well.

[Cadalac123]

The reaction to this is appauling and I can see how people get rich from the stock market.

I see people talking about apocalyptic type scenarios and everything and everyone going into lockdown. Interesting far the news can push peoples imagination. I guess China not being a country anymore has shown how bad the coronovirus can get /sarcasm

[peat]

Had a visit from a Mainfreight truck today. He said they are really busy.
Surprised he got me to sign a docket though. Other deliveries have now gone contactless.
And yes their comment today was most illuminating and encouraging. I almost hit the trigger haha

[Bjauck]

The reaction to this is appauling and I can see how people get rich from the stock market.

I see people talking about apocalyptic type scenarios and everything and everyone going into lockdown. Interesting far the news can push peoples imagination. I guess China not being a country anymore has shown how bad the coronovirus can get /sarcasm

It is a challenging time. However sometimes reading “catastrophising” posts can get to you after a while too.

Even when people can’t travel, the freight and trade routes have been kept open.