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Player Avatar rpeterson01 (90.39) Submitted: 5/26/2008 9:37:13 AM : Outperform Start Price: $55.17 CHRW Score: -24.91

Very consistent performer. This company doesn't manage ANY assets so it is unaffected by fuel prices. In fact any type of market volatility (fuel, truck shortage, product shortage) is an opportunity for this company to increase margins - its a broker so it always makes its "quarter." Plus if trucks aren't an efficient way to move product it will source another form of trans (planes, trains, boats, etc.) for its customers. HUGE economic moat due to an insurmoutable network effect coupled with its technological advantage (due to purchase of American Backhaulers) make it untouchable. The largest by 2x in its industry but only has 2% of a very fragmented market. However, its organic growth alone has been steadily growing by 15% annually. Tons of room for opportunity in and outside the company. Price may not be a great buy right now but in the long term this company CANNOT miss. When it was a privately employee owned company, it has annual returns in excess of 25% over a 30 year run - not too shabby. Little has changed with this company since it went public in '98. So when the P/E is down to 25 its time to jump in (currently at 32). Good, conservative midwest managment.

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