Q: Hi 5i
Regarding the question asked by JS:
I think your answer is right on the money. I have been holding TransForce for a few years now and I saw some optimism and a bit of a run-up leading into the earnings. A slight miss had to be disappointing to many.
Another thing however, is that their package and courier revenue declined. Some holders of the stock, myself included, were hoping that that P&C would continue to grow with the growth of ecommerce. On a day where Amazon is showing huge gains in sales, we are not seeing that "trickle down" to the P&C business of TFII. In other words, TFI does not seem to be benefitting from the big gains in ecommerce generally. That's a problem because one would have liked growing P&C revenue to smooth out the ups and downs of trucking revenue. I think some investors don't see a primarily trucking play as long hold because it will be rather cyclical.
Anyhow, for what its worth I am holding, as the company still produces nice cash, pays down debt, buys back shares and has increased its dividend several times over the last few years.
Cheers
John
Regarding the question asked by JS:
I think your answer is right on the money. I have been holding TransForce for a few years now and I saw some optimism and a bit of a run-up leading into the earnings. A slight miss had to be disappointing to many.
Another thing however, is that their package and courier revenue declined. Some holders of the stock, myself included, were hoping that that P&C would continue to grow with the growth of ecommerce. On a day where Amazon is showing huge gains in sales, we are not seeing that "trickle down" to the P&C business of TFII. In other words, TFI does not seem to be benefitting from the big gains in ecommerce generally. That's a problem because one would have liked growing P&C revenue to smooth out the ups and downs of trucking revenue. I think some investors don't see a primarily trucking play as long hold because it will be rather cyclical.
Anyhow, for what its worth I am holding, as the company still produces nice cash, pays down debt, buys back shares and has increased its dividend several times over the last few years.
Cheers
John
