Frozen Food Express Industries, Inc. (NASDAQ:FFEX)

CAPS Rating: No stars

The Company is a publicly-owned, temperature-controlled trucking company in North America. It is engaged in motor carrier transportation of perishable commodities, providing full-truckload and less-than-truckload service throughout North America.

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Player Avatar Ganndalf (72.22) Submitted: 3/5/2007 2:40:48 PM : Outperform Start Price: $7.79 FFEX Score: -120.85

O.K. , I'll come clean... I cheated.... I was looking for one of the answers on Penny's caps list. But hey, what the heck, since she never raises her hand in class, I figured I could get away with it.

I know a lil' bit about this company:

--look at the income statement... WOW.

-look at the cash flow statement...WOW!

-notice it's way of its 52 week high...WOW!!!

-pssst... It's covered by 0 analysts..... Holy Smokes!!!

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Member Avatar pennysplants (99.60) Submitted: 3/5/2007 4:02:10 PM
Recs: 0

You're cool !! And, so is this company. Patience will be rewarded IMHO. You're right on.

Yes, I'm shy. Must be the farm influence. Why raise your hand in Harvard 101 when there were so many others who wanted to speak? I believe in listening.

Please remember I'm an amateur. Don't invest real $$ based on my intuition. Do your own DD. CAPS is my learning lab. I'm NOT an expert. These are just my notes. I'm not used to folks looking over my shoulder.

Today I'm sinking big time. Oh well. Of course, my investment thesis is that this is short term and that there are many buying opportunities out there with this course correction. But, who has the time?

Member Avatar MGDG (35.65) Submitted: 10/18/2007 11:25:49 PM
Recs: 1

Hey Granndalf---pennysplant, I've been in the transportation industry for 30 years. While this company is well run along with some others I've owned over the years, the timing is not right with the transportation sector. You'll notice the Dow Jones Transportation Index is well off it's high. In fact it's been sitting on it's 200 day average for awhile while the other major indexes have been setting new highs. This may at first seem to be a buying oppurtunity but it means something is not right with the markets. Dow Theorists say if the Transportation Index does not confirm the new highs in the Dow Industrials then this rally is a head fake and has no legs. The U.S. Freight Tonnage Index has been in a downtrend for over a year which will put pressure on the Trucking profits going forward. At the same time we have rising fuel costs which we are trying to pass on to the consumer in the form of fuel surcharges. We also have new regulations to clean up Diesel emissions which is adding to capital expenditures. So with lower volumes and higher costs to contend with it will be hard for the sector as a whole to have earnings growth. I have seen in this business that transportation is the first to weaken before recession and the first to recover when recessions end. This is because were like a canary in a coal mine. All goods that are purchased must be transported to final destination before purchase. The economy is weaker than most would lead you to believe. When the Freight Tonnage Index has a sustained reversal in the downtrend, that will be the time to look at the transportation stocks. The 3rd and 4th quarter earnings reports from this sector as a whole will not be good. There will be companies within in this sector that are taking business from their competitors and others that are reducing their operating costs that will have fair or slightly improving earnings. I for one could not predict which ones they would be, but the overall sector earnings will be to the downside.--Fool On--let's educate each other to become better investors. PS--I've made some terrible picks in the banking sector--It's a good thing I'm a logistics manager and not a banker or I'd be broke by now.

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