MFT - Mainfreight. Global Freight & Logistics

[Sideshow Bob]

Agreed PE is 35 after recent declines and seems very fulsome in the circumstances. What happens to gross revenues when shipping rates inevitably normalise ? Maybe its not the one way bet many seem to think it is ?
Clear break down through the 100 day MA and just broken down through the 180 day MA, 200 probably very shortly. End of the current upward trend for a while ?

MFT are one of those quality, blue-chip companies that have always traded at high PE ratio's - that have often confounded many, including myself and always seem "too expensive". Just like EBO and FPH. But generally, they have high-quality management, and a track record of delivering (to shareholders, as well as their freight....).

However life is alot about timing. Great company, great to hold, but the time to buy isn't now.

Keeping the powder dry.......

[MauroNZ]

Agreed PE is 35 after recent declines and seems very fulsome in the circumstances. What happens to gross revenues when shipping rates inevitably normalise ? Maybe its not the one way bet many seem to think it is ?
Clear break down through the 100 day MA and just broken down through the 180 day MA, 200 probably very shortly. End of the current upward trend for a while ?

Hey Beagle, Happy New Year, when you look at the TA indicators like the mentioned ones what time frame do you use? one year maybe?. Thanks.

[Pricey]

Might still seem expensive, but MFT is in a different class of its own when compared to other high PE stocks - shareholders are long term holders and I am always tempted to buy any dip.

- 27.9% average p.a. return over the last ten years
- 2021 Net Profit up 27%
- 2022 HY Net Profit up 79%
- December 2021: Managing Director buys $900,000 worth of shares at $90.
- Transport & Logistics in high demand
- Trading update due February 2022 .....

[alokdhir]

Might still seem expensive, but MFT is in a different class of its own when compared to other high PE stocks - shareholders are long term holders and I am always tempted to buy any dip.

- 27.9% average p.a. return over the last ten years
- 2021 Net Profit up 27%
- 2022 HY Net Profit up 79%
- December 2021: Managing Director buys $900,000 worth of shares at $90.
- Transport & Logistics in high demand
- Trading update due February 2022 .....

Fully agree and endorse buying all dips ...82-84 should be great price to add ...doing so on every down day . Its the most consistent of NZX stock

[iceman]

Might still seem expensive, but MFT is in a different class of its own when compared to other high PE stocks - shareholders are long term holders and I am always tempted to buy any dip.

- 27.9% average p.a. return over the last ten years
- 2021 Net Profit up 27%
- 2022 HY Net Profit up 79%
- December 2021: Managing Director buys $900,000 worth of shares at $90.
- Transport & Logistics in high demand
- Trading update due February 2022 .....

Well said and totally agree. Just added a few at $84.

[Beagle]

Hey Beagle, Happy New Year, when you look at the TA indicators like the mentioned ones what time frame do you use? one year maybe?. Thanks.

Hi mate I just normally bring up a 2 year chart. Very impressive long term performance of MFT does not in any way whatsoever guarantee future long term outperformance as others imply. My 2 cents.

[iceman]

Hi mate I just normally bring up a 2 year chart. Very impressive long term performance of MFT does not in any way whatsoever guarantee future long term outperformance as others imply. My 2 cents.

Mate I think you know better than to suggest others are "guaranteeing" anything. This is the sharemarket we are talking about ! NOTHING is guaranteed except the unexpected.

[Beagle]

Mate I think you know better than to suggest others are "guaranteeing" anything. This is the sharemarket we are talking about ! NOTHING is guaranteed except the unexpected.

Fair enough, didn't mean to besmirch anyone. What I guess I am getting at (and you can probably answer this quite easily with your experience with the company) is what happens to MFT gross revenue when shipping costs normalise ?

Surely they are making a lot more revenue when it costs $40,000 per shipping container they handle for clients than when it costs $2,000 ?

[Peitro]

Trading update due out in the next 2/3 weeks, I think we could go close to half billion NPBT this year.

Looking forward to some satisfactory news.

[mikelee]

Yes, the extra shipping cost will just have to be passed on to customers sooner or later, so regardless of the current logistic bottleneck & Omicron I expect the business to continue to do well as the world slowly opens up.