Comments on: CH Robinson – Stepping In Front of a Train http://zachstocks.com/2009/09/ch-robinson-stepping-in-front-of-a-train/ Dynamic Investments for Exceptional Traders Fri, 19 Mar 2010 14:28:35 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Michael Tannenbaum http://zachstocks.com/2009/09/ch-robinson-stepping-in-front-of-a-train/comment-page-1/#comment-7869 Michael Tannenbaum Mon, 21 Sep 2009 22:34:00 +0000 http://zachstocks.com/?p=2573#comment-7869 Remember that the company has an unlevered ROE of over 30% that is unlikely to decrease due to the variable cost nature of their business model. In addition, since they have approximately 4% market share of the 3rd party trucking business (this includes traditional brokers) it is really hard to determine the ceiling of potential growth. It would seem that there are a lot of lower quality companies to short than one that has been taking market share - witness the most recent quarter. The stock has traded at 15x earnings only once in the last 8 years. That occurred for a month this past February. Remember that the company has an unlevered ROE of over 30% that is unlikely to decrease due to the variable cost nature of their business model. In addition, since they have approximately 4% market share of the 3rd party trucking business (this includes traditional brokers) it is really hard to determine the ceiling of potential growth. It would seem that there are a lot of lower quality companies to short than one that has been taking market share – witness the most recent quarter.

The stock has traded at 15x earnings only once in the last 8 years. That occurred for a month this past February.

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