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$$$MR. MARKET$$$ Loves PTSI
by: mr_market63 (42/M)
Long-Term Sentiment: Strong Buy 04/15/02 04:08 pm
Msg: 277 of 300
I bought PTSI (P.A.M. Transportation) today at 24.84. I will sell it in four to six weeks at 28.88. Now you're probably all surprised by this pick, but let me give you my reasoning:
„h Momentum: PTSI stock price is up 234% in the last 12 months giving it an RS of 98.
„h Valuation: PE is 20.75. Even at this low PE, take this year¡¦s avg earnings estimate of $1.33, add $0.13 per share, which is how much they have beaten expectations the last several quarters, and this gives you $1.46. Multiply it buy 20.75 and you get $30.30/share.
„h Not much downside risk unless economy takes a dump, which it won¡¦t.
„h Well positioned for rotational inflow of funds from tech stocks.
„h Operating margins are 9.4%. This is very good for a staeady Eddy business like transportation.
„h Return on Equity = 15%
„h Revenues up 10% from last year
Here is some more info on PTSI:
P.A.M. Transportation Services, Inc., organized in June 1986, operating through its wholly owned subsidiaries, is an irregular route, common and contract motor carrier. The Company is authorized to transport general commodities throughout the continental United States and the Canadian provinces of Ontario and Quebec, pursuant to operating authorities granted by the former Interstate Commerce Commission (ICC), various state regulatory agencies and Canadian regulatory agencies. The freight consists primarily of automotive parts, consumer goods, such as general retail store merchandise, and products from the manufacturing sector, such as heating and air conditioning units. All freight is transported as truckload quantities.
This is primarily a bet on the economy recovering, and signs point to this actually occurring. Sales have grown an average of 15% over the last 5 years. The company has been profitable for each of the last 16 quarters.
Robert W. Weaver, President of the Company, commented, ``We are very pleased to report record results for our year ended December 31, 2001 - a year in which the industry and the Company endured numerous challenges. While many companies saw revenue and earnings decline, we finished with a 10% increase in revenues and a 15% increase in earnings per share for the year ended December 31, 2001. For the quarter ended December 31, 2001 revenues increased 10.4% and earnings per share increased from $.28 to $.30. Fourth quarter earnings were impacted by a one time write-down in equipment values of $523,000, or the equivalent of $.04 per share. This write-down was primarily related to equipment acquired in the acquisition of Decker Transport, Inc. that did not have guaranteed residual values.''
The stock is experiencing very good accumulation recently even though it is at a resistance point. The great thing about low volume stocks is that good earnings or economic data can easily shatter these resistance points. There is no resistance in the area just above the stock price of $25.63
I am HUGE!!!!
$$$MR. MARKET$$$
by: mr_market63 (42/M)
Long-Term Sentiment: Strong Buy 04/15/02 04:08 pm
Msg: 277 of 300
I bought PTSI (P.A.M. Transportation) today at 24.84. I will sell it in four to six weeks at 28.88. Now you're probably all surprised by this pick, but let me give you my reasoning:
„h Momentum: PTSI stock price is up 234% in the last 12 months giving it an RS of 98.
„h Valuation: PE is 20.75. Even at this low PE, take this year¡¦s avg earnings estimate of $1.33, add $0.13 per share, which is how much they have beaten expectations the last several quarters, and this gives you $1.46. Multiply it buy 20.75 and you get $30.30/share.
„h Not much downside risk unless economy takes a dump, which it won¡¦t.
„h Well positioned for rotational inflow of funds from tech stocks.
„h Operating margins are 9.4%. This is very good for a staeady Eddy business like transportation.
„h Return on Equity = 15%
„h Revenues up 10% from last year
Here is some more info on PTSI:
P.A.M. Transportation Services, Inc., organized in June 1986, operating through its wholly owned subsidiaries, is an irregular route, common and contract motor carrier. The Company is authorized to transport general commodities throughout the continental United States and the Canadian provinces of Ontario and Quebec, pursuant to operating authorities granted by the former Interstate Commerce Commission (ICC), various state regulatory agencies and Canadian regulatory agencies. The freight consists primarily of automotive parts, consumer goods, such as general retail store merchandise, and products from the manufacturing sector, such as heating and air conditioning units. All freight is transported as truckload quantities.
This is primarily a bet on the economy recovering, and signs point to this actually occurring. Sales have grown an average of 15% over the last 5 years. The company has been profitable for each of the last 16 quarters.
Robert W. Weaver, President of the Company, commented, ``We are very pleased to report record results for our year ended December 31, 2001 - a year in which the industry and the Company endured numerous challenges. While many companies saw revenue and earnings decline, we finished with a 10% increase in revenues and a 15% increase in earnings per share for the year ended December 31, 2001. For the quarter ended December 31, 2001 revenues increased 10.4% and earnings per share increased from $.28 to $.30. Fourth quarter earnings were impacted by a one time write-down in equipment values of $523,000, or the equivalent of $.04 per share. This write-down was primarily related to equipment acquired in the acquisition of Decker Transport, Inc. that did not have guaranteed residual values.''
The stock is experiencing very good accumulation recently even though it is at a resistance point. The great thing about low volume stocks is that good earnings or economic data can easily shatter these resistance points. There is no resistance in the area just above the stock price of $25.63
I am HUGE!!!!
$$$MR. MARKET$$$
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