Resuming Our Normal Schedule and Diving Into the Transportation Sector


Happy Monday! We’re back to a sense of normal around here at Net Growth Media headquarters after last week’s hurricane scare. We hope you enjoyed the pieces that we pulled from the archives for you before we shuttered ourselves in only to experience some wind and rain. We lucked out.

Now we’ve back to a regular week. And this week we’re looking at the transportation sector. This sector includes shipping by air, sea and land and other logistics included in the process. The last time we looked at the industry, we ended up looking at three railroad companies. It was the perfect time too since earnings season for those companies was just ramping up.

This week our algorithm is steering us in a more diversified direction. We’ve got one of our railroad stocks from before…and two companies that are more diversified. Let’s jump right in…

First up we’ve got C.H. Robinson Worldwide, Inc. (CHRW). C.H. Robinson believes in accelerating global trade to seamlessly deliver all the products and goods that drive the world’s economy. The company is one of the world’s largest third-party logistic providers with over 124,000 customers around the world.

For over 100 years, C.H. Robinson has been providing innovative supply chain solutions. This includes truckload services, ocean and air shipping and complete supply chain consulting. No matter what its customers need, the company provides when with seamless integration.

Management is working hard to grow market share with new and existing customers. This includes continuously thinking of new ways to evolve the services offered and add carriers to its extensive network. Although the company has truckload services in North America and ocean services from China to the US, there are many parts of the world that the management believes presence can be expanded to. This leads to searching for the expansion and acquisition opportunities.

Last Tuesday, shares opened at $83.55 and closed on Friday at $83.28. We’ll call that essentially flat for the week.

Next up, we’ve got Canadian National Railway Company (CNI). Canadian National is a leading North American transportation and logistics company. The company’s goal is to deliver the goods that keep the economy rolling.

To do that, CN transports more than C$250 billion worth of goods annually for a wide range of business sectors. Its customers range from resource products to manufactured products to consumer goods and everything in between. And it moves raw goods, intermediate goods and finished goods to market.

The company’s website claims that shipping by rail is four times more fuel-efficient than trucking alone. That’s why CN utilizes its approximately 20,000 route-miles spanning Canada and mid-America in combination with its solid trucking partners to provide all-inclusive shipping solutions. It also makes transferring shipments between truck, sea and rail incredibly simple through its intermodal container services and terminals.

The company is way more than a shipping company. CN wants to make sure that its customers have the most efficient supply chain.  On top of the trucking, rail, freight and intermodal…customers can have a single contact that also includes warehousing, distribution and customs brokering. The company’s sales team helps put together customs logistic packages to fit businesses in an industry that you can think of.

Shares opened last Tuesday at $91.63 and closed for the week at $92.84. That’s an increase of 1.3% over the shortened trading week. We’ll have to see if that bit of momentum keeps through this week.

Finally, we’ve got Genesee & Wyoming Inc. (GWR). This is not a new name to our Alpha contest. The company owns or leases 119 freight railroads worldwide serving over 3,000 customers. Its North American region serves 41 states and four Canadian provinces. In total it’s more than 13,000 track-miles.

G&W’s Australia Region operates 1,400 miles of rail line. The company’s UK/Europe region includes the UK’s largest rail maritime operator and second-largest freight rail provider. The overall goal of the company is to be the safest and most respected transportation service provider in the world.

We mentioned it before, and it’s worth mentioning again that GWR is on its way to becoming a privately held company. In July, GWR announced that it had been acquired by Brookfield Infrastructure and GIC in an $8.4 billion deal. The deal offers $112 per share. Which means that even though shares have made their way up to $110, it’s not likely that we will see those prices pass $112 or even hit that mark. But the market has done stranger things.

Last Tuesday, shares opened at $110.84 and closed on Friday at $110.78.

We’ll be back on Wednesday to check in with all the numbers and see how share prices are reacting over the first half of the week.

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