MFT - Mainfreight

[Shareguy]

Closed $69.73

[winner (n)]

Love the take out on that slide that shows June quarter npbt down 43% on pcp


"We have plenty to do"

[Shareguy]

Mainfreight in FY23 employed 11,311 people in its 331 branches across 26 countries. It took on 981 extra people in FY22 to meet pandemic-fuelled freight demand.

Redundancy's................................

[Onemootpoint]

Mainfreight in FY23 employed 11,311 people in its 331 branches across 26 countries. It took on 981 extra people in FY22 to meet pandemic-fuelled freight demand.

Redundancy's................................

Possibly/ probably. That strategy seemed to work for the Nasdaq.

At a glance it seems that the Americas and Asia experienced the greatest drops. Redundancies there perhaps.

[Shareguy]

The level of decline is more than what analysts were forecasting.  Only one quarter but 19 percent revenue decline is big. The issue is that costs have increased with volumes going down. They have stated that price increases have been instigated.

Do not think there will be a major share price correction. Looks like it's going back to 2021 year as far as earnings go. Trading on high forward PE currently but a quality company with great management.

Will be interesting to see what anyalists come out with. At the end of the day this is not about a loss of customers or market share.

Would like to add but not there yet.

[kiwi2007]

Old share market saying "When transports start to decline run, don't walk for the door".

[Onemootpoint]

From
https://www.interest.co.nz/economy/123256/us-data-releases-impress-us-regulators-move-force-banks-hold-more-capital-eyes-boj

"The cost of containerised freight rose last week, a second week this has happened and confirming the bottom may have been reached. This was driven by outbound cargo rates from China to the US. Meanwhile bulk cargo rates were little-changed."

Their link:
https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/world-container-index-assessed-by-drewry

[Onemootpoint]

Going for a dive this morning. Time to dip a toe in the water.....

[entrep]

Going for a dive this morning. Time to dip a toe in the water.....

Too early to swim

[Onemootpoint]

Talk of a global 'freight recession' in this 1 minute Bloomberg video:

https://www.youtube.com/watch?v=rDuXjrZ36-A

[Cod]

Looks messy, weight is more breakdown than up.

You cannot view this attachment.

[Shareguy]

Craig's have EPS of $2.85 for 2024F. PE of 24. Far weaker than expected.

Based on DSV which is on a PE of 23 implies spot $68.15

I don't think a lot is going to happen to share price until November report.

[Shareguy]

The Americas, which enjoyed the biggest up-tick in recent years, has experienced the sharpest reversal of fortunes, with PBT down -81% against 1Q23.


https://www.cnn.com/2023/08/01/business/yellow-corp-driver-jobs

[Onemootpoint]

The Americas, which enjoyed the biggest up-tick in recent years, has experienced the sharpest reversal of fortunes, with PBT down -81% against 1Q23.


https://www.cnn.com/2023/08/01/business/yellow-corp-driver-jobs

30 000 people out of jobs, just like that. The company handled 7% of LTL shipments.
Seems like debt was the overloading factor here. Times are getting rough.

[Shareguy]

30 000 people out of jobs, just like that. The company handled 7% of LTL shipments.
Seems like debt was the overloading factor here. Times are getting rough.

Agree debt and a very strong union. Huge opportunity for MFT however big risk for a NZ company. Time will tell but could go horribly wrong.

From what I'm hearing and seeing in retail in NZ, i have concerns for volumes going forward. This might not be the last cockroach in the kitchen.

However a great company which I have a large holding. Not buying more.......yet