MFT - Mainfreight. Global Freight & Logistics

[scamper]

Well! I never saw that coming!
i suppose if i had been more awake i would've known that results were due...
anyway, it has amply demonstrated that technical analysis can be thoroughly gazumphed by news of fundamental details.
silly-faced puppy.

[limegreen]

quote:Originally posted by scamper
anyway, it has amply demonstrated that technical analysis can be thoroughly gazumphed by news of fundamental details.

Or alternately that you should be a little cautious with thinly traded stocks. Today's "plunge" is on a volume that is miniscule even for this stock. I could personally have triggered a 3% plunge with my laughable holding.

MFT has been trading in a very tight range for some time now (I wouldn't call it a downtrend). Technically, when a share "gaps" up, you expect that to be an area of expected support, and it has not dropped through that yet.



And looking more long term, there's still a rising OBV, and today's price movement is volatile for the last 6 months, but not compared to other blips in its meteoric rise.



I have no idea if it is over-priced, but I see no reason to believe that the dream has ended yet.

[kizame]

Excellent analysis Limegreen,it's always good to keep the medium to longterm perspective in mind,and bear in mind the overseas expansion with this stock,they are actively looking for medium size acquisitions,especially in the states.
The offshore profitability is improving,this stock will continue to surprise I'm sure.

Not a holder though but have been watching to see whether it broke through resistance.

[limegreen]

MFT has always been a little difficult to track with trendlines over the longer term. What is clear, is that it continues to make higher highs and higher lows. The current price drop may well just be a higher low, to be followed by a new high in a few months.

[Snow Leopard]

Mainfreight Announces Divestment
It works for me

[Viking]

A very satisfacotory result [^][^]

MFT
30/05/2007
FLLYR

REL: 0850 HRS Mainfreight Limited

FLLYR: MFT: Mainfreight Preliminary Announcement Full Year March 2007

MAINFREIGHT GROUP LIMITED

Financial result for the twelve months ended March 2007 (Unaudited)

The Mainfreight Group is pleased to report another record net surplus after taxation before abnormals of $36.4 million for the twelve months of the 2007 financial year. This represents a $7.4 million, or 25% increase when compared to the same period last year.
A further $19.2 million of abnormal gains is added to our net surplus as previously discussed, bringing total net surplus for the year to $55.6 million.

Consolidated revenues (sales) increased to $968 million from $887 million; an increase of $81 million. Excluding foreign exchange this is an increase of 5.5%.

This is a very satisfactory performance, where all divisions in all countries contributed positively to the result.

Our global interests have performed exceptionally well, particularly
Australia and the United States. In both markets this performance will continue to strengthen as we develop market share across the supply chain.

While trading conditions in New Zealand were challenging, we have been able to improve on our last year's performance and are confident of continuing to do so.

In this past year we have been able to achieve good organic growth as well as divesting our interests in four businesses, three subsequent to balance date, which has allowed us to considerably strengthen our balance sheet, pay increased dividends to shareholders, and position ourselves for substantial future growth, assisted in the short-term by acquisition.

Net surplus earnings before abnormals from outside of New Zealand now exceed 54% of our group total, and will continue to grow in significance.

Divisional Performance
New Zealand
Trading conditions in the New Zealand economy were certainly more difficult in the past six months, where domestic freight volumes were markedly decreased and export volumes diminished on the back of the New Zealand currency appreciation.

Our Domestic contributions are satisfactory in light of trading conditions, where EBIT improved 5% on static revenue growth.

The benefits of the Owens and Mainfreight International merger and increased improvement in LEP performance saw EBIT improve 43% to $3.8 million on revenue growth of 3%. Post year end "Owens" has been removed from the brand.

In our domestic operations we continue to build our range of service
offerings utilizing the intensity of our network and warehousing capability. These will provide further opportunities for us to grow our business, increasing the range of services for our customers across the supply chain.

With our International business, our focus continues on growth in our import products and airfreight capability. This directly reflects the changing New Zealand trade patterns. Our regional presence has been strengthened and we expect to open two new branches in Hamilton and Dunedin.

During the year we significantly increased our airfreight growth in both perishable and dry products further enhancing our number one IATA ranking.

Australia
Our growth and presence in Australia continues to rise. Domestically our operations maintained their momentum of the past year, with EBIT improving in excess of 137% to $9.9 million, on a revenue increase of 25%.

In our international divisions our overall result was dampened by the lumpy performance of the projects division, Pan Orient. However EBIT still improved to $13.9 million, up 8% on a revenue increase of 11% to $309 million.
Of greater significance was the performance of Mainfreight International where EBIT improved 34% to $6.1 million and revenues increased 11% to $140 million.

Domestically, our high quality, next day transport services in the express freight market continue to attract customers. We have established a very

[Viking]

The market seem to react positively on the result announced this morning~ perhaps its time to break the side-tracking trend~

[Viking]

By the way, the 25% increase in profit is before the abnormals. If we include the abnormals, their net profit is a gain of 91% [:0]

[Snow Leopard]

After having a look at the provisional accounts for last year I think that the normalised NPATA is 43.5cps, which was ahead of my expectations.
I can see no reason to consider selling any yet.

[Snow Leopard]

Arrived back in the nearest thing Australia has to civilisation (i.e Melbourne) today to find the Mainfreight annual report waiting for me.
If you are an existing shareholder then presumably you have read it and are suitably encouraged.
However if you are NOT an existing shareholder, Why not?
You can download the report here and I suggest it is well worth your monthly data allowance to do so.

Whilst I can give you no guarantee as to the future (but then who can?) I have, over the years, come to appreciate that Mainfreight is one of the few companies who tells it like it is and is definitely focussed on the long-term.

You will realise from the research you undertake after reading the above report that the current high value of the dollar is beneficial to the company from a short-term acquisitions and a future earnings point of view (if you accept the wisdom that the NZ dollar is overvalued)

So if your timeframe extends beyond the end of the year you do need to consider Mainfreight as a medium and long term investment.

On the assumption that they will meet their targets at the long end of Don's statement then you may consider the current SP a little high but I believe you want to put or keep this on the watchlist.

If you want a TA perspective then ask Phaedrus

regards
Paper Tiger

Disc: Lots and not a seller.