Forward Air Corp (FWRD)

jempsall (96.98) Submitted: 5/2/2009 9:13:31 PM : Start Price: $17.16 FWRD Score: +6.55

This popped up on a Morningstar stock screen of wide moat stocks that have been free cash flow positive for the last three years, produced returns on equity in excess of 10% and that have a market cap of under $2 billion (ie - small cap "Buffet type" stocks. They're also well below Morningstars fair value.

IEBeanCounter (57.48) Submitted: 10/21/2008 9:48:16 AM : Start Price: $21.86 FWRD Score: -12.47

EPS in line, good cost control

LTContrarian (67.53) Submitted: 6/19/2008 11:54:39 AM : Start Price: $36.54 FWRD Score: -23.10

4 words, Great Management & Good Moat

deuspecuniae (74.25) Submitted: 4/25/2008 5:39:40 PM : Start Price: $33.22 FWRD Score: +13.30

A recessions a coming this summer and high oil prices are not going away since the falling dollar is to blame, and continued inflation is not going to bring the value of the dollar up any time soon. Burnanke was not helping this country by bailing out the crust of American society. Also, Bush's stimulus package didn't help the upward inflationary pressure that is killing this countries middle class. Sorry about my rant but anyway my point is to sell trucking since rail is about to take over from the high price of fuel.

bpurmort (< 20) Submitted: 2/15/2007 6:18:37 PM : Start Price: $31.64 FWRD Score: -8.61

I have been in and out of this one a couple of times. Each time I take $10-12 swings as it becomes favored.
Quality management, world class service model, dedicated customers who understand the need for stable, consistent serivice. They bit off a sizable acquisition and are waiting for the

pkpicks (40.83) Submitted: 1/26/2007 6:00:41 PM : Start Price: $29.75 FWRD Score: -5.66

Cornering the LTL market

etstockideas (< 20) Submitted: 1/22/2007 11:39:19 AM : Start Price: $28.83 FWRD Score: -3.46

I have just completed my first round of due diligence and low price to book... Check out my value scorecard at:
http://etstockideas.blogspot.com/2007/01/stockpickr-spotlight-portfolio-review.html

weiwentg (97.00) Submitted: 1/19/2007 12:50:14 PM : Start Price: $32.67 FWRD Score: -19.40

OK, so FWRD is down 13% since I picked it. But I'm not worried, because this company has a wide moat, dominating its little niche in the transport industry.

Like Expeditors' International (EXPD), another of my favorite transport firms, FWRD is asset-light. It does not own trucks, it contracts with independent owner-operators. It consolidates less-than-truckload shipments and sends them on their way. all their 81 terminals are near airports, so they've cornered the good locations. and they have the flexibility to increase or decrease their contracts in good or bad times. others have tried to enter the market but failed. FWRD took losses for several years while building up its infrastructure, and now it has a scale that entrants won't be able to match easily. rivals also haven't been able to match their quality of service. FWRD offers considerable savings over traditional freight carriers, and they could potentially pick up international business, as international carriers aren't permitted to deliver beyond gateway cities in the US.

The Columbia Acorn fund, run by the renowned Wanger Asset Management, owns 6.57% of outstanding shares (making up less than .5% of the fund). FWRD has paid a small dividend since early 05, and they bumped it up in 06.

cjbaldw (41.26) Submitted: 12/7/2006 7:08:00 PM : Start Price: $31.48 FWRD Score: -10.69

Airline industry corporation with a good cash position, good market position, basically the UPS of the commercial airline industry.

eddiet0729 (32.89) Submitted: 10/25/2006 2:35:21 PM : Start Price: $30.75 FWRD Score: -11.05

From M-star... Forward Air has no rival with the same scale and service quality competing away its profits, and high barriers to entry insulate the company from potential entrants. Forward Air offers substantial cost savings compared with traditional air freight carriers, whose prices per pound of freight are 4-5 times higher. Fair Value Estimate $40.00

stillborn2 (< 20) Submitted: 10/21/2006 11:13:58 PM : Start Price: $34.38 FWRD Score: +19.47

Already owns 80% of the marketshare in their niche space in the defered ltl airfreight business. No room to grow core business, except through rate increases- will encourage customers to look elsewhere for options (not direct competitors, but indirect such as scheduled LTL providers and truckload consolidators.

res0yen1 (34.48) Submitted: 9/16/2006 5:56:27 AM : Start Price: $32.92 FWRD Score: -19.67

Strong organization and leadership

Gouldberg (69.87) Submitted: 9/9/2006 5:12:15 PM : Start Price: $31.29 FWRD Score: -16.65

FWRD dominates the niche airport-to-airport transport business, with not much competition to speak of. This means extreme profitability, as well as free cash flow, for at least the near future. FWRD doesn't own the trucks - it contracts with private operators. So if the economy takes a dive they scale down, but they also have the flexibility to increase capacity quickly when things are booming. ROA and ROE consistently 20+%. Very little debt. A great little company few have heard of.