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Hello out there!! Who is the HUGEST one of all? Well it’s $$$MR. MARKET$$$. Why do I say so? Well today I sold FLT at 88.01. That’s a 15.7% gain over my purchase price of 76.05 when I bought this stock back on April 3, 2013. That’s a 15.7% gain in less than 10 weeks. That’s an annualized gain of almost 80%!! Over the same period, the S&P 500 was up only 5.8%. That’s pathetic. I crushed the market once again.
Did you buy FLT? You? YOU? YOU???!! Don’t say I didn’t tell you I was buying it. Now I have 15 consecutive profitable trades of 15% or better. You? YOU?? YOU???!!
Isn’t that amazing? Aren’t I amazing? I mean come on, you have to admit I am simply the most incredible stock picker on the planet. Why deny it? I am the most wonderful thing to ever happen to the stock market universe. All I do is print money.
Ha Ha Ha HA!! I am so successful in the stock market. I laugh so hard my belly hurts and I have to do more situps.
Do you want to see another pick? If you do, you have to TELL ME! I do this for free. The least people can do is ask me nicely for another pick.
I am HUGE!
$$$MR. MARKET$$$
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04-03-2013, 04:28 PM #1 mrmarket
FLT ==> The Happy Easter Winner
This is a cheetah, it is very fleet:
This is Usain Bolt…also very fleet:
This is $$$MR. MARKET$$$...not so fleet:
Now this is not too much of a problem. $$$MR. MARKET$$$ can always tape a cheetah to his back. Or even better, he can buy a stock whose price will move up fleet like a cheetah. I might as well just buy stock in Fleet. What a great idea!
Today I bought stock in FleetCor (FLT) at 76.05. I will sell it in 4 to 6 weeks at 87.99. Here’s why I like FLT:
When I told you the stock was fleet I wasn’t kidding. Look at this chart! This stock is up 99% in the last 52 weeks. That’s like a 2% gain per week. Now the trailing PE isn’t that cheap, hovering around 30, but if you look at the forward PE of 18, this stock is very reasonable….it’s all about the earnings earnings earnings.
Fleetcor provides specialized payment products and services to businesses, commercial fleets, oil companies, petroleum marketers, and government entities in North America, Europe, South Africa, and Asia. It sells a range of customized fleet and lodging payment programs; and offers various card products to purchase fuel, lodging, and related products and services at participating locations. The company also offers prepaid fuel and food vouchers and cards, as well as a telematics solution that enables fleet operators to monitor the capacity utilization and movement of vehicles and drivers.
If you look at its earnings history over the last few years, you can see that revenue has grown steadily from $341 million in 2008 to $520 million in 2011 and to $707 million in 2012. Net income has improved from, $97 million in 2008 to $147 million in 2011 and $216 million in the 2012. On a diluted earnings per share basis, FLT reported $1.34/share in 2010, $1.76 in 2011, and $2.71/share in 2012.
Looking briefly at their balance sheet on Morningstar, we can see that the company as of December 2012, had $1,195 million in total current assets compared to $1,142 in total current liabilities giving it a current ratio of just over 1.0.
Let’s face the facts. No matter what your political position, the economy has come out of the recession and the trucking industry s directly influenced by this growing economy. People buy more, you have to truck more. So if you look at the underlying strong earnings growth and revenue record, reasonable valuation in a rebounding industry, you have to like what you see in Fleetcor.
I’m not the only one. FleetCor Technologies has 299 funds owning stakes in the company. FleetCor is a relatively new traded company, it began trading on the NYSE in December 2010, but has posted steady growth since its debut. The company reported a 46% rise in EPS on Feb. 8, and FleetCor is bullish on the future, guiding its Q1 earnings estimates above ANAL-yst views. They expect even more acquisitions (most recently moving into Australia) to be accretive to their earnings growth. A 2011 acquisition in Great Britain, a Russian card business it bought last June and a Brazilian operation it picked up in July all contributed to Q4 results.
Ron Clarke, FleetCor’s Chairman and Chief Executive Officer commented, “We are delighted to announce this deal with GE Capital, and continue our global expansion by entering the Australian market. Fleet Card is a terrific product with near universal acceptance, and we look forward to marketing it more broadly to a wider audience.”
For all of 2013 it sees revenue of $790 million to $810 million, and EPS of $3.61-$3.69. ANAL-ysts expect $3.40 EPS on sales of $775.7 million. We’ll see whats what…but either way, the company is continuing to chug along.
"We have nearly $1 billion in liquidity to continue our global business development efforts," CEO Ron Clarke said in a statement.
If you’re still confused by all of this, Fleetcor essentially is a specialized version of Visa. The more electronic transactions, the more money they make. Visa topped estimates on higher transaction volumes and pledged to keep focused on converting an ever greater proportion of cash transactions to electronic form. Remember, the economy is growing, and we’re going to see more swipes.
Effectively they are a special purpose business charge card and a primarily commercial fuel card. 90% of their revenue is driven by the processing of commercial fuel cards around the world. The other 10% or so of revenue is driven by their other products (food card, hotel card, etc).
Their value proposition to our customers is primarily around control and savings. Their products effectively help to reduce commercial fuel spend, hotels spend and other product spend around the world. If your company uses fuel, it makes sense for them to have a fuel card (or a Fleetcard) to manage these expenses. So as an example in the United States, if you have got a Chevron commercial card or a BP commercial card, Arco or Citgo, just to name a few, that’s effectively FleetCor.
In 2012, over 40% of their revenue was generated outside the United States but in 2013 that number is probably be closer to 50%. So they are very, very diversified, certainly from a from a geography standpoint. Revenue has grown at a compounded annual growth rate of 29% since 2003, and net income has grown at a compounded annual growth rate of 41% over that same period of time.
They have a great business model. I t's transaction based. 90% or so of their revenue recurs every year before they sell a new account. These transactions, again, are mostly recurring and are effectively routine purchases for their customers. So you definitely have a high degree of confidence in developing their business model every year, again, because 90% of the transactions recur. The key here is that they have very low customer concentration. They have over 600,000 customer relationships around the world today, none of which represent effectively any significant percentage of the business. So if you lose one or two customers, it’s no big deal. They are dug in and it’s a terrific business model.
Here’s the really good news. Fleetcor has very low variable costs. About 70% of their costs are fixed and they have low CapEx requirements. What this means is that as revenues grow, each additional incremental dollar of revenue contributes a greater percentage to earnings. Earnings will ACCELERATE with constant revenue growth! EBITDA margins are over 50%!!!!
Even more good news…FLT operates in a very, very large market that is significantly underpenetrated.So the business has lots of room to grow. If the world's commercial fuel market represents about 226 billion gallons, FLT has about 7 billion gallons. They only have a 3% market share around the world. That is most certainly lots of room to grow. They are in only five the top 20 fuel markets today. The world's a big place. The objective is to get into every single one of those markets. Some of them via M&A or partnering with major oil companies or by forming a joint venture with a third party as well.
FLT markets their products through multiple sales channels, using every means imaginable to sell their product. They use direct sales forces, direct mail, the internet and telemarketing. Want to know why they are growing? 65% or so of their sales are generated today using sales methods that didn’t exist in the business just three years ago. They only had just a direct sales force at that period of time.
The transactions that they earn revenue are as low as $0.20 to $0.30 a transaction and as high as $10 a transaction. The average is about $2.33. They are investing in those products that have a higher than the average revenue per transaction. So simplistically when they add new volume, we are adding revenue per transaction. A lot of the business they are buying are undermanaged. The transactions are there, but FLT makes them more efficient.
The overall long-term expected earnings growth rate for this stock is 16.4%. With a return on equity of 25%, this should be a layup. Earnings are going to keep screaming, and like Harold and Kumar, I’m going to be on the back of this fleet cheetah!
I am HUGE!!
$$$MR. MARKET$$$
If you liked this writeup, please tell a friend to join the free website: www.mrmarketishuge.com
Last edited by mrmarket; 05-12-2013 at 01:46 PM.
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
Did you buy FLT? You? YOU? YOU???!! Don’t say I didn’t tell you I was buying it. Now I have 15 consecutive profitable trades of 15% or better. You? YOU?? YOU???!!
Isn’t that amazing? Aren’t I amazing? I mean come on, you have to admit I am simply the most incredible stock picker on the planet. Why deny it? I am the most wonderful thing to ever happen to the stock market universe. All I do is print money.
Ha Ha Ha HA!! I am so successful in the stock market. I laugh so hard my belly hurts and I have to do more situps.
Do you want to see another pick? If you do, you have to TELL ME! I do this for free. The least people can do is ask me nicely for another pick.
I am HUGE!
$$$MR. MARKET$$$
================================================== =============================
04-03-2013, 04:28 PM #1 mrmarket
FLT ==> The Happy Easter Winner
This is a cheetah, it is very fleet:
This is Usain Bolt…also very fleet:
This is $$$MR. MARKET$$$...not so fleet:
Now this is not too much of a problem. $$$MR. MARKET$$$ can always tape a cheetah to his back. Or even better, he can buy a stock whose price will move up fleet like a cheetah. I might as well just buy stock in Fleet. What a great idea!
Today I bought stock in FleetCor (FLT) at 76.05. I will sell it in 4 to 6 weeks at 87.99. Here’s why I like FLT:
When I told you the stock was fleet I wasn’t kidding. Look at this chart! This stock is up 99% in the last 52 weeks. That’s like a 2% gain per week. Now the trailing PE isn’t that cheap, hovering around 30, but if you look at the forward PE of 18, this stock is very reasonable….it’s all about the earnings earnings earnings.
Fleetcor provides specialized payment products and services to businesses, commercial fleets, oil companies, petroleum marketers, and government entities in North America, Europe, South Africa, and Asia. It sells a range of customized fleet and lodging payment programs; and offers various card products to purchase fuel, lodging, and related products and services at participating locations. The company also offers prepaid fuel and food vouchers and cards, as well as a telematics solution that enables fleet operators to monitor the capacity utilization and movement of vehicles and drivers.
If you look at its earnings history over the last few years, you can see that revenue has grown steadily from $341 million in 2008 to $520 million in 2011 and to $707 million in 2012. Net income has improved from, $97 million in 2008 to $147 million in 2011 and $216 million in the 2012. On a diluted earnings per share basis, FLT reported $1.34/share in 2010, $1.76 in 2011, and $2.71/share in 2012.
Looking briefly at their balance sheet on Morningstar, we can see that the company as of December 2012, had $1,195 million in total current assets compared to $1,142 in total current liabilities giving it a current ratio of just over 1.0.
Let’s face the facts. No matter what your political position, the economy has come out of the recession and the trucking industry s directly influenced by this growing economy. People buy more, you have to truck more. So if you look at the underlying strong earnings growth and revenue record, reasonable valuation in a rebounding industry, you have to like what you see in Fleetcor.
I’m not the only one. FleetCor Technologies has 299 funds owning stakes in the company. FleetCor is a relatively new traded company, it began trading on the NYSE in December 2010, but has posted steady growth since its debut. The company reported a 46% rise in EPS on Feb. 8, and FleetCor is bullish on the future, guiding its Q1 earnings estimates above ANAL-yst views. They expect even more acquisitions (most recently moving into Australia) to be accretive to their earnings growth. A 2011 acquisition in Great Britain, a Russian card business it bought last June and a Brazilian operation it picked up in July all contributed to Q4 results.
Ron Clarke, FleetCor’s Chairman and Chief Executive Officer commented, “We are delighted to announce this deal with GE Capital, and continue our global expansion by entering the Australian market. Fleet Card is a terrific product with near universal acceptance, and we look forward to marketing it more broadly to a wider audience.”
For all of 2013 it sees revenue of $790 million to $810 million, and EPS of $3.61-$3.69. ANAL-ysts expect $3.40 EPS on sales of $775.7 million. We’ll see whats what…but either way, the company is continuing to chug along.
"We have nearly $1 billion in liquidity to continue our global business development efforts," CEO Ron Clarke said in a statement.
If you’re still confused by all of this, Fleetcor essentially is a specialized version of Visa. The more electronic transactions, the more money they make. Visa topped estimates on higher transaction volumes and pledged to keep focused on converting an ever greater proportion of cash transactions to electronic form. Remember, the economy is growing, and we’re going to see more swipes.
Effectively they are a special purpose business charge card and a primarily commercial fuel card. 90% of their revenue is driven by the processing of commercial fuel cards around the world. The other 10% or so of revenue is driven by their other products (food card, hotel card, etc).
Their value proposition to our customers is primarily around control and savings. Their products effectively help to reduce commercial fuel spend, hotels spend and other product spend around the world. If your company uses fuel, it makes sense for them to have a fuel card (or a Fleetcard) to manage these expenses. So as an example in the United States, if you have got a Chevron commercial card or a BP commercial card, Arco or Citgo, just to name a few, that’s effectively FleetCor.
In 2012, over 40% of their revenue was generated outside the United States but in 2013 that number is probably be closer to 50%. So they are very, very diversified, certainly from a from a geography standpoint. Revenue has grown at a compounded annual growth rate of 29% since 2003, and net income has grown at a compounded annual growth rate of 41% over that same period of time.
They have a great business model. I t's transaction based. 90% or so of their revenue recurs every year before they sell a new account. These transactions, again, are mostly recurring and are effectively routine purchases for their customers. So you definitely have a high degree of confidence in developing their business model every year, again, because 90% of the transactions recur. The key here is that they have very low customer concentration. They have over 600,000 customer relationships around the world today, none of which represent effectively any significant percentage of the business. So if you lose one or two customers, it’s no big deal. They are dug in and it’s a terrific business model.
Here’s the really good news. Fleetcor has very low variable costs. About 70% of their costs are fixed and they have low CapEx requirements. What this means is that as revenues grow, each additional incremental dollar of revenue contributes a greater percentage to earnings. Earnings will ACCELERATE with constant revenue growth! EBITDA margins are over 50%!!!!
Even more good news…FLT operates in a very, very large market that is significantly underpenetrated.So the business has lots of room to grow. If the world's commercial fuel market represents about 226 billion gallons, FLT has about 7 billion gallons. They only have a 3% market share around the world. That is most certainly lots of room to grow. They are in only five the top 20 fuel markets today. The world's a big place. The objective is to get into every single one of those markets. Some of them via M&A or partnering with major oil companies or by forming a joint venture with a third party as well.
FLT markets their products through multiple sales channels, using every means imaginable to sell their product. They use direct sales forces, direct mail, the internet and telemarketing. Want to know why they are growing? 65% or so of their sales are generated today using sales methods that didn’t exist in the business just three years ago. They only had just a direct sales force at that period of time.
The transactions that they earn revenue are as low as $0.20 to $0.30 a transaction and as high as $10 a transaction. The average is about $2.33. They are investing in those products that have a higher than the average revenue per transaction. So simplistically when they add new volume, we are adding revenue per transaction. A lot of the business they are buying are undermanaged. The transactions are there, but FLT makes them more efficient.
The overall long-term expected earnings growth rate for this stock is 16.4%. With a return on equity of 25%, this should be a layup. Earnings are going to keep screaming, and like Harold and Kumar, I’m going to be on the back of this fleet cheetah!
I am HUGE!!
$$$MR. MARKET$$$
If you liked this writeup, please tell a friend to join the free website: www.mrmarketishuge.com
Last edited by mrmarket; 05-12-2013 at 01:46 PM.
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
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