With shares of Berkshire Hathaway (NYSE:BRKB) trading around $113, is BRKB an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:T = Trends for a Stock�� Movement
Berkshire Hathaway is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. It is also involved in a freight rail transportation business, a group of utility, and energy generation and distribution businesses.�Berkshire Hathaway was founded in 1889 and is based in Omaha, Nebraska.
Berkshire Hathaway, Warren Buffett�� conglomerate, has made a profit of $10 billion thus far from investments made during the financial crisis, according to the Wall Street Journal. Berkshire invested a total of $26 billion in six different companies during the crisis, including Mars Inc., Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), Swiss Re Ltd., Dow Chemical Co. (NYSE:DOW), and General Electric (NYSE:GE). Last week, Berkshire collected a $4.4 billion payment from Mars subsidiary Wrigley. ��n terms of simple profitability, an average investor could have done just as well investing in the stock market if they bought during the panic period,��Buffett said in an interview Saturday.
Top 5 Undervalued Stocks To Own For 2015: Universal Truckload Services Inc (UACL)
Universal Truckload Services, Inc., incorporated on December 11, 2001, is engaged in providing transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec. The Company�� over-the-road trucking services include both flatbed and dry van operations and it provides rail-truck and steamship-truck intermodal support services. It also offers truck brokerage services, as well as full service international freight forwarding and customs house brokerage services. The Company provides truckload transportation and related services for a range of general commodities over irregular routes using dry and specialty vans and un-sided trailers, including flatbed, drop deck, and specialty. In December 2013, the Company announced that it has completed acquisition of Westport Axle Corporation.
The Company primarily operates through a contractor network of agents and owner-operators who provide the Company with approximately 3,100 tractors and approximately 3,000 trailers. At December 31, 2011, the Company had approximately 565 agents. The Company conducts its operations through its wholly owned operating subsidiaries under the brand names, such as Universal Am-Can, Ltd., Mason & Dixon Lines, Inc., Louisiana Transportation Inc., Mason Dixon Intermodal, Inc., Economy Transport, Inc., Great American Lines, Inc., Universal Logistics Solutions, Inc., Universal Logistics Solutions International, Inc. and Cavalry Transportation, LLC.
The Company provides services in three categories, such as truckload services, brokerage services and intermodal support services. The Company transports a range of general commodities, including machinery, building materials, paper, food, consumer goods, automotive parts, furniture, steel and other metals. During the year ended December 31, 2011, its truckload operations represented 60.5%, of its operating revenues.
The Company provides primarily broker freight to third-party transportation providers th! rough its agent network at times when the Company generates more freight business than it can service with its available owner-operators. The Company offers full service international freight forwarding and customs house brokerage services, as well as third-party logistic services. During 2011, its brokerage services represented 24.8%, of its operating revenues. Its intermodal support services are primarily short-to-medium distance delivery of rail and steamship containers between the railhead or port and the customer and drayage services. During 2011, its intermodal support services represented 14.7% of its operating revenues.
The Company�� agents provide the primary interaction with its shippers. They generate freight shipments and also provide terminal and dispatch services for the owner-operators and are an essential source for recruitment of new owner-operators. The agents use a company-provided software program to list available freight procured by the agent, dispatch owner-operators to haul the freight and provide all administrative information necessary for it to establish the credit arrangements for each shipper. The owner-operators are individuals who own, operate and maintain one or more tractors that they either provide drivers, or drive themselves. The Company�� owner-operators provide it with approximately 3,100 tractors. Owner-operators also may own trailers that they provide the Company in addition to their tractor and driving services. As of December 31, 2011, its owner-operators provided approximately 3,000 trailers, which represent over 50% of the trailers the Company use in its business.Advisors' Opinion:
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Universal Truckload Services (Nasdaq: UACL ) , whose recent revenue and earnings are plotted below.
- [By Sean Williams]
What: Shares of Universal Truckload Services (NASDAQ: UACL ) , a North American provider of trucking and logistics solutions, jumped as much as 12% after receiving an upgrade from BB&T�Capital Markets.
10 Best Freight Stocks To Buy For 2014: Marten Transport Ltd (MRTN)
Marten Transport, Ltd. is a temperature-sensitive truckload carrier. The Company specializes in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. It operates throughout the United States and in parts of Canada and Mexico. The Company operates in two segments: Truckload and Logistics. During the year ended December 31, 2011, approximately 81% of its truckload revenue resulted from hauling temperature-sensitive products and 19% from hauling dry freight. Its long-haul traffic lanes are between the Midwest and the West Coast, Southwest, Southeast, and the East Coast, as well as from California to the Pacific Northwest. It provides regional truckload carrier services in the Southeast, West Coast, Midwest, South Central and Northeast regions.
The Company derives truckload revenue from fuel surcharges, loading and unloading activities, equipment detention and other ancillary services. Its operating revenue also includes revenue reported within its Logistics segment, which consists of revenue from its internal brokerage and intermodal operations, and through its 45% interest in MW Logistics, LLC (MWL), a third-party provider of logistics services to the transportation industry. Brokerage services involve arranging for another company to transport freight for the Company�� customers, while it retains the billing, collection and customer management responsibilities. Intermodal services involve the transport of its trailers on railroad flatcars for a portion of a trip, with the balance of the trip using its tractors or, to a lesser extent, contracted carriers. It focuses on large food and consumer-packaged goods companies whose products require temperature-sensitive services and who ship multiple truckloads per week. As of December 31, 2011, its customers were General Mills and Kraft.
As of December 31, 2011, the Company operated a fleet of 2,281 tractors, including 2,233 company owned tractors and 48 t! ractors supplied by independent contractors. The average age of its company owned tractor fleet at December 31, 2011 was approximately 2.6 years. As of December 31, 2011, it operated a fleet of 4,124 trailers. Most of its trailers are equipped with Thermo-King refrigeration units, air ride suspensions and anti-lock brakes. The average age of its trailer fleet as of December 31, 2011 was approximately 2.4 years.Advisors' Opinion:
- [By Seth Jayson]
Marten Transport (Nasdaq: MRTN ) reported earnings on July 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Marten Transport missed estimates on revenues and missed estimates on earnings per share.
- [By Monica Gerson]
Marten Transport (NASDAQ: MRTN) is estimated to post its Q3 earnings at $0.23 per share on revenue of $168.28 million.
CSX (NYSE: CSX) is expected to post its Q3 earnings at $0.43 per share on revenue of $2.95 billion.
10 Best Freight Stocks To Buy For 2014: Vitran Corporation Inc (VTNC)
Vitran Corporation Inc. (Vitran), incorporated on April 29, 1981, is a provider of freight surface transportation and related supply chain services throughout Canada 34 states in the eastern, southeastern, central, southwestern, and western United States. The Company�� business consists of Less-than-truckload services (LTL). These services are provided by stand-alone business units within their respective regions. Vitran�� business is carried on through its subsidiaries, which hold the licenses and permits required to carry on business. As of December 31, 2012, Vitran�� principal wholly owned operating subsidiaries included Vitran Express Canada Inc. (Ontario), Can-Am Logistics Inc. (Ontario), Vitran Logistics Ltd. (Ontario), Expediteur T.W. Ltee (Canada), Vitran Corporation (Nevada), Vitran Express Inc. (Pennsylvania), Vitran Logistics Corp. (Delaware), Vitran Logistics Inc. (Indiana), and Las Vegas/L.A. Express, Inc. (California). In March 2013, Vitran Corp Inc completed divestiture of its Supply Chain Operation division to Legacy Supply Chain. In October 2013, Vitran Corporation Inc. completed the sale of its United States LTL business.
Within Canada, the Company provides next-day service within Ontario, Quebec and parts of western Canada, and generates its revenue from the movement of LTL freight within the three- to five-day east-west service lanes. The majority of its trans-Canada freight is shipped intermodally, whereby the Company�� containers are loaded onto rail cars and trans-loaded to Vitran facilities where Vitran�� network of owner operators pick up and deliver the freight to various destinations. During 2012, Vitran�� Canadian LTL business represented approximately 27.6% of total LTL revenues. Vitran�� Transborder Service Solution (inter-regional) provides over-the-road service between its Canadian LTL and United States LTL business units.Advisors' Opinion:
- [By Monica Gerson]
Breaking newsVitran Corporation (NASDAQ: VTNC) announced today that it has entered into a definitive arrangement agreement with TransForce pursuant to which TransForce has agreed to acquire all of the outstanding common shares of Vitran not already owned by TransForce for US$6.50 in cash per share, in accordance with TransForce's prior proposal. To read the full news, click here. ReneSola (NYSE: SOL) today announced it signed a Memorandum of Intent (MOI) to sell three utility-scale projects in Western China, with a total capacity of 60MW, to Jiangsu Akcome Solar Science & Technology Co on December 30, 2013. To read the full news, click here. Cooper Tire & Rubber Company (NYSE: CTB) today announced it has terminated the merger agreement with Apollo Tyres (NSE:ApolloTYRE). To read the full news, click here. RedHill Biopharma (NASDAQ: RDHL) today announced that it has entered into a definitive agreement with leading healthcare investor OrbiMed Israel Partners Limited Partnership, an affiliate of OrbiMed Advisors LLC, for the sale of RedHill's American Depository Shares and warrants in a private placement transactionor a total sum of $6.0 million. To read the full news, click here.
Posted-In: Guggenheim US Stock FuturesNews Eurozone Futures Global Pre-Market Outlook Markets
10 Best Freight Stocks To Buy For 2014: Agility Public Warehousing Co KSC (AGLTY)Agility Public Warehousing Company KSC is a Kuwait-based company engaged, along with its subsidiaries, in the provision of global integrated logistics solutions. The Company is organized into two business segments: the Logistic and Related services segment provides logistics offering to its clients, including freight forwarding, transportation, contract logistics, project logistics and fairs and events logistics, and the Infrastructure segment provides other services, which include industrial real estate airport and airplane ground handling and cleaning services, customs consulting, private equity and waste recycling. The Company operates under the brand name of Agility. The Company�� subsidiaries include Global Express Transport Co. WLL, PWC Transport Company WLL, Agility DGS Logistics Services KSCC and Gulf Catering Company for General, among others. Advisors' Opinion:
- [By Fiona MacDonald]
The Kuwait SE Price Index rose for a sixth day, climbing 0.5 percent to 6,851.17 at the close. Kuwait Real Estate Co. (KRE) climbed to the highest level in a month. Agility (AGLTY) advanced 1.7 percent after winning a $190 million UN contract in Sudan�� Darfur region. The Bloomberg GCC 200 Index, which tracks the biggest 200 companies in the Gulf Cooperation Council, fell 0.1 percent.
10 Best Freight Stocks To Buy For 2014: Werner Enterprises Inc (WERN)
Werner Enterprises, Inc., incorporated on September 14, 1982, is a transportation and logistics company engaged primarily in hauling truckload shipments of general commodities in both interstate and intrastate commerce. The Company also provides logistics services through its value added services (VAS) division. As of the year ended December 31, 2012, the Company had a fleet of 7,150 trucks, of which 6,505 were Company-operated and 645 were owned and operated by independent contractors. The Company operates in two segments: Truckload Transportation Services (Truckload) and VAS.
The Company's Truckload segment consists of the One-Way Truckload and Specialized Services units. One-Way Truckload includes the operating fleets: the regional short-haul (Regional) fleet transports a variety of consumer nondurable products and other commodities in truckload quantities within geographic regions across the United States using dry van trailers; the medium-to-long-haul van (Van) fleet provides comparable truckload van service over irregular routes, and the expedited (Expedited) fleet provides time-sensitive truckload services utilizing driver teams.
Specialized Services provides truckload services dedicated to a specific customer, generally for a retail distribution center or manufacturing facility, including services for products requiring specialized trailers such as flatbed or temperature-controlled trailers. The Company's Truckload fleets operate throughout the 48 contiguous United States, both common and contract, granted by the United States Department of Transportation (DOT). The Company also has authority to operate in several provinces of Canada and to provide through-trailer service into and out of Mexico. The principal types of freight the Company transports include retail store merchandise, consumer products, grocery products and manufactured products. The Company focuses on transporting consumer nondurable products that generally ship.
The Company's VAS segment is a non-asset-based transportation and logistics provider. VAS is consists of four operating units that provide non-trucking services to the Company's customers: truck brokerage (Brokerage) uses contracted carriers to complete customer shipments; freight management (Freight Management) offers a range of single-source logistics management services and solutions; the intermodal (Intermodal) unit offers rail transportation through alliances with rail and drayage providers as an alternative to truck transportation, and Werner Global Logistics international (WGL) provides complete management of global shipments from origin to destination using a combination of air, ocean, truck and rail transportation modes. The Company's Brokerage unit had transportation services contracts with approximately 9,400 carriers as of December 31, 2012.Advisors' Opinion:
- [By Seth Jayson]
Werner Enterprises (Nasdaq: WERN ) reported earnings on April 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Werner Enterprises missed estimates on revenues and missed estimates on earnings per share.
10 Best Freight Stocks To Buy For 2014: Hub Group Inc (HUBG)
Hub Group, Inc., incorporated on March 8, 1995, is an asset-light freight transportation management companies. The Company offers intermodal, truck brokerage and logistics services. The Company operates distinct business segments: Mode, which includes the acquired Mode business acquired by the Company on April 1, 2011, and Hub, which is all business other than Mode. Both segments offer intermodal, truck brokerage and logistics services. Hub operates through a network of operating centers throughout the United States, Canada and Mexico. Hub services a diversified customer base in a broad range of industries, including consumer products, retail and durable goods. Mode markets and operates its freight transportation services primarily through its network of independent business owners (IBOs) who enter into contracts with Mode. Mode's company managed operation includes a business arranging for the transportation of raw materials and finished products for a food producer and, to a lesser extent, other highway brokerage, intermodal and logistics operations.
As an intermodal marketing company (IMC), the Company arranges for the movement of its customers freight in containers and trailers, typically over long distances of 750 miles or more. The Company contracts with railroads to provide transportation for the long-haul portions of the shipment and with local trucking companies, known as drayage companies, for pickup and delivery. As part of the Company's intermodal services, the Company negotiates rail and drayage rates, electronically tracks shipments in transit, consolidate billing and handle claims for freight loss or damage on behalf of its customers.
The Company uses its network to access containers and trailers owned by leasing companies, railroads and steamship lines. The Company is able to track trailers and containers entering a service area and reuses that equipment to fulfill the customers' outbound shipping requirements. As of December 31, 2012, ! Hub had access to approximately 9,111 rail-owned containers for the Company's dedicated use on the Union Pacific (UP) and the Norfolk Southern (NS) rails. In addition to these rail-owned containers, as of December 31, 2012, the Company had a total of 14,756 53-inch private containers for use on the UP and NS. The Company financed 6,167 of these containers with operating leases and the Company owns 8,589 containers.
As of December 31, 2012, approximately 66% of the Company's drayage needs were met by its subsidiary, Comtrak Logistics, Inc. (Comtrak), which assists its customers. Comtrak has terminals in Atlanta, Birmingham, Charleston, Charlotte, Chattanooga, Chicago, Cleveland, Columbus (OH), Dallas, Harrisburg, Huntsville, Indianapolis, Jacksonville, Kansas City, Milwaukee, Memphis, Nashville, Newark, Los Angeles, Perry (FL), Philadelphia, Savannah, Seattle, St. Louis, Stockton, and Titusville (FL). As of December 31, 2012, Comtrak owned 260 tractors, leased or owned 448 trailers, employed 296 drivers and contracted with 2,178 owner-operators.
Truck Brokerage (Highway Services)
The Company is a truck broker in the United States. As part of the truck brokerage services, the Company negotiates rates , track shipments in transit and handle claims for freights loss and damage on behalf of its customers.
Logistics and Other Services
Hub's logistics business operates under the name of Unyson Logistics. Unyson Logistics consists of a network of logistics professionals dedicated to developing, implementing and operating customized logistics solutions. Unyson offers a range of transportation management services and technology solutions, including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution and Web-based shipment visibility. Unyson Logistics operates throughout North America, providing operations through its main operating location in St. Louis with additional support locations in Bosto! n, Chicag! o, Cleveland and Minneapolis. Certain Mode agents provide logistics services. The Company's multi-modal transportation capabilities through both the Hub and Mode segments include small parcel, heavyweight, expedited, less-than-truckload, truckload, intermodal and railcar.Advisors' Opinion:
- [By Lisa Levin]
Hub Group (NASDAQ: HUBG) surged 3.13% to $44.20. The volume of Hub Group shares traded was 388% higher than normal. Hub Group reported its Q1 earnings of $0.33 per share on revenue of $848.40 million. Longbow Research upgraded Hub Group from Neutral to Buy.
10 Best Freight Stocks To Buy For 2014: Con-way Inc (CNW)
Con-way Inc. (Con-way), incorporated in 1958, provides transportation, logistics and supply-chain management services for a wide range of manufacturing, industrial and retail customers. Con-way�� business units operate in regional and transcontinental less-than-truckload and full-truckload freight transportation, contract logistics and supply-chain management, multimodal freight brokerage, and trailer manufacturing. Con-way is divided into four segments: Freight, Logistics, Truckload, and Other. At December 31, 2011, Con-way Freight operated 286 freight service centers, of which 144 were owned and 142 were leased. At December 31, 2011, Con-way Freight owned and operated approximately 9,200 tractors and 26,400 trailers, including tractors held under capital lease agreements.
The Freight segment consists of the operating results of the Con-way Freight business unit. Con-way Freight is a less-than-truckload (LTL) motor carrier that utilizes a network of freight service centers to provide day-definite regional, inter-regional and transcontinental less-than-truckload freight services throughout North America. LTL carriers transport shipments from multiple shippers utilizing a network of freight service centers combined with a fleet of line-haul and pickup-and-delivery tractors and trailers. Freight is picked up from customers and consolidated for shipment at the originating service center. Freight is consolidated for transportation to the destination service centers or freight assembly centers. At Freight assembly centers, freight from various service centers can be reconsolidated for transportation to other freight assembly centers or destination service centers. From the destination service center, the freight is delivered to the customer. Typically, LTL shipments weigh between 100 and 15,000 pounds. In 2011, Con-way Freight�� average weight per shipment was 1,305 pounds.
The Logistics segment consists of the operating results o! f the Menlo Worldwide Logistics business unit. Menlo Worldwide Logistics develops contract-logistics solutions, which can include managing complex distribution networks, and providing supply-chain engineering and consulting, and multimodal freight brokerage services. Menlo Worldwide Logistics��supply-chain management offerings are primarily related to transportation-management and contract-warehousing services. Transportation management refers to the management of asset-based carriers and third-party transportation providers for customers��inbound and outbound supply-chain needs through the use of logistics management systems to consolidate, book and track shipments. Contract warehousing refers to the optimization and operation of warehouses for customers using technology and warehouse-management systems to reduce inventory carrying costs and supply-chain cycle times. For several customers, contract-warehousing operations include light assembly or kitting operations.
Menlo Worldwide Logistics provides its services using a customer- or project-based approach when the supply-chain solution requires customer-specific transportation management, single-client warehouses, and/or single-customer technological solutions. However, Menlo Worldwide Logistics also utilizes a shared-resource, process-based approach that leverages a centralized transportation-management group, multi-client warehouses and technology to provide scalable solutions to multiple customers. Additionally, Menlo Worldwide Logistics segments its business based on customer type. At December 31, 2011, Menlo Worldwide Logistics operated 76 warehouses in North America, of which 55 were leased by Menlo Worldwide Logistics and 21 were leased or owned by clients of Menlo Worldwide Logistics. Outside of North America, Menlo Worldwide Logistics operated an additional 63 warehouses, of which 48 were leased by Menlo Worldwide Logistics and 15 were leased or owned by clients. Menlo Worldwide Logistics owns and operates a small fleet of tr! actors an! d trailers to support its operations, but primarily utilizes third-party transportation providers for the movement of customer shipments.
The Truckload segment consists of the operating results of the Con-way Truckload business unit. Con-way Truckload is a full-truckload motor carrier that utilizes a fleet of tractors and trailers to provide short- and long-haul, asset-based transportation services throughout North America. Con-way Truckload provides dry-van transportation services to manufacturing, industrial and retail customers while using single drivers as well as two-person driver teams over long-haul routes, with each trailer containing only one customer�� goods. This origin-to-destination freight movement limits intermediate handling and is not dependent on the same network of locations utilized by LTL carriers. On average, Con-way Truckload transports shipments more than 800 miles from origin to destination. Under its regional service offering, Con-way Truckload transports truckload shipments of less than 600 miles, including local-area service for truckload shipments of less than 100 miles.
Con-way Truckload offers through-trailer service into and out of Mexico through all major gateways in Texas, Arizona and California. For a shipment with an origin or destination in Mexico, Con-way Truckload provides transportation for the domestic portion of the freight move, and a Mexican carrier provides the pick-up, linehaul and delivery services within Mexico. At December 31, 2011, Con-way Truckload operated five owned terminals with bulk fuel, tractor and trailer parking, and in some cases, equipment maintenance and washing facilities. In addition, Con-way Truckload also utilizes various drop yards for temporary trailer storage throughout the United States. At December 31, 2011, Con-way Truckload owned and operated approximately 2,700 tractors and 8,000 trailers, including tractors held under capital lease agreements.
! The Other! reporting segment consists of the operating results of Road Systems, a trailer manufacturer, and certain corporate activities for which the related income or expense has not been allocated to other reporting segments, including results related to corporate re-insurance activities and corporate properties. Road Systems primarily manufactures and refurbishes trailers for Con-way Freight and Con-way Truckload.Advisors' Opinion:
- [By Ben Levisohn]
Wunderlich’s Nicholas Bender thinks FedEx’s results bode well for Old Dominion (ODFL), Con-way (CNW) and Saia (SAIA):
We expect all less-than-truckload carriers to benefit in 2Q14 from the same trends that carried FedEx Freight to a banner 4Q14. This includes Hold-rated Old Dominion, which will continue to grow at well above market rates, and Buy-rated Con-way, which we believe can leverage a strong 2Q14 to prime the pump on margin enhancement efforts. Our favorite name in the space remains Saia (SAIA-$42.92, Buy), which will once again see accelerating tonnage growth in 2Q14. Though tonnage growth will moderate in� 2H14 due to steeper comps, there remains considerable potential for the company to boost yield and continue winning incremental business with new accounts.
- [By John Kell]
Con-way Inc.(CNW) issued a weaker-than-expected profit outlook for the fourth quarter after the trucking company encountered challenges at its Con-way Freight and Menlo Worldwide Logistics operations. The company’s shares declined 6.1% to $38.89 premarket.
- [By Dan Caplinger]
Navistar hasn't been entirely locked out of the trucking market, though. The company won several contracts from the Defense Department in support of its military vehicles, including its MaxxPro mine-resistant, ambush-protected armored vehicle. On the commercial front, Navistar won part of an order in May from trucking company Con-Way (NYSE: CNW ) , which purchased 200 ProStar vehicles from the company. Still, the fact that rival Paccar (NASDAQ: PCAR ) got an even bigger portion of the Con-Way order is just one more sign of the ongoing struggles Navistar faces.
- [By Rich Smith]
Consider: According to YRC, the $150.9 million it currently pays in annual interest exceeds the $92.6 million in interest obligations paid by "all [of its] competitors combined." Con-Way (NYSE: CNW ) , for example, sports a debt load about half of YRC's, yet pays only about one-third �as much in interest on that debt. Old Dominion Freight (NASDAQ: ODFL ) has 12% the debt �of YRC, but only 7% of the interest expense.