C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)

upside

Earnings-related stock price dip gives us an opportunity to buy this great business at a more favorable price. Long-term shareholders should be rewarded by the company's high returns on invested capital (ROIC >30% past 10+ years) and global trends favoring increased trade.

Low multiple vs historical levels. I'm assuming they'll be able to maintain their current roe.

"Wide Economic Moat" type of a business. CHRW has the "Networking Effect" keeping its competitors at a disadvantage.
Here's a video from Morningstar.com briefly discussing the above stated (CHRW is the last item discussed in the video):

morningstar.com/cover/videocenter.aspx?id=588695

If you are interested in finding out more about the different economic moats - either read or listen to an audiobook version of Pat Dorsey's book: "The Little Book That Builds Wealth."
Here are some reviews from GoodReads.com and Amazon.com , respecively:

goodreads.com/book/show/2389174.The_Little_Book_That_Builds_Wealth

amazon.com/Little-Book-That-Builds-Wealth/product-reviews/047022651X

If you want a concise overview of the ideas which are expanded in the aforementioned book - here's Pat Dorsey himself in a 2010 (5 min.) video talking about the 4 different sources of a moat:

morningstar.com/cover/videocenter.aspx?id=349487

Here's a more recent (2012), and a longer (20 min.) video discussing the 4 sources of a moat. In addition, this video includes a newly identified, fifth, source of a moat - the "Efficient Scale." :

http://www.morningstar.com/cover/videocenter.aspx?id=542541

For good measure, see this old, 2003, article about the 4 moat sources:

news.morningstar.com/articlenet/article.aspx?id=91441

With the moats explained and a decent understanding of the "Networking Effect" out of the way - here's what the S&P Capital IQ currently writes about CHRW:

S&P Star Ranking = 3
(1=lowest, 5=highest)

S&P Fair Value Rank = 4+
(1=most overvalued, 5=most undervalued)

S&P Quality Ranking = A+ (highest possible)
(Growth and stability of earnings and dividends are deemed key elements in establishing S&P's Quality Rankings for common stocks, which are designed to capsulize the nature of this record in a single symbol. It should be noted, however, that the process also takes into consideration certain adjustments and modifications deemed desirable in establishing such rankings...)

Fair Value Calculation = $64.30
(Analysis of the stock's current worth, based on S&P's proprietary quantitative model suggests that CHRW is slightly undervalued by $3.83 or 6.3%.)

12-Mo. Target Price = $70.00
(Our 12-month target price of $70 values the stock at 23.3X our 2013 EPS estimate of $3.00. Our valuation is above peer levels, but toward the lower end of CHRW's historical P/E range for the past five years of 18X to 36X earnings.)

"We still have a positive view of CHRW's history of strong returns on assets and equity relative to most other transportation companies. However, we think the company's shift in strategy to lever up the balance sheet for recent acquisitions warrants a lower valuation multiple than CHRW has been rewarded with in the past. Also, these acquisitions are leading to higher costs for the company. We also think the forwarding business, where CHRW has targeted its acquisitions, is more competitive and likely to have lower returns than CHRW's traditional transport business.
On the positive side, CHRW has been a generator of cash over the past few years and the company does not have a defined benefit pension plan."

TDA - SMA Crossover (Bearish)

Morningstar wide moat focus index recently added this to the index.

insider sells over 5 mill then reports low earnings? cheap

Current rally probably will not bring this into "New High" territory.

Actual value by my estimate is only $33, which would mean repeated visits to the "New Low" list.

An Ultralong freighter pick with no debt and increasing divs.

I believe this stock is fairly valued at $70s.

no debt

GS thinks top 10 10/17/2011

'The New Buffettology' Screen

I've dealt with C.H. Robinson personally within the load brokerage department. Their knowledge about truck freight is unconvincing as is there general knowledge as it pertains to freight rates. When they phone it sounds like a call center which again means they don't have a clue about anything which is backed up the minute they speak.

I just can't see this thing producing the growth one would like to see long term.

CHRW has excellent growth prospects for the next five years and is (a rarity for this stock) currently priced reasonably.

CH Robinson is the best third party freight provider there is. Capatalizing on the spread between the cost to the supplier and it's price to the customer is ch robinson's specialty. CH Robinson knows it's market better than anyone, and will take full advantage of the spread when pricing to the customer strengthens along with the economy. This flexible business model along with shrewd management, who continues to invest and buy strong niche companies complementing its core businesses, will make investors money indefinitely.

These guys have been around a long time. They're tech-savvy, maintain a phenomenal balance sheet, and seem to like splitting the stock around $65.

TMF article highlighted history of dividends.

A Soros pick that makes sense to me