Changes in the Ebbs and Flows of Freight: Companies Must Adapt to Changing Customer Behaviors and Multiple Product Innovations from Technology Firms Throughout the Year

Wall Street Transcript

67 WALL STREET, New York - October 1, 2013 - The Wall Street Transcript has just published its Transportation and Logistics Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Regulatory Issues in the Trucking Industry - Trucking Pricing & Capacity Dynamics - Truckload, LTL, Parcel, Rail and Intermodal - Technology Adoption and Infrastructure Investments

Companies include: FedEx Corporation (FDX), United Parcel Service, Inc. (UPS), Expeditors International of Wa (EXPD), UTI Worldwide, Inc. (UTIW), Pacer International Inc. (PACR), Hub Group Inc. (HUBG), Air Transport Services Group, (ATSG), Atlas Air Worldwide Holdings I (AAWW), Forward Air Corp. (FWRD), Ryder System, Inc. (R), Express-1 Expedited Solutions (XPO), Quality Distribution Inc. (QLTY), Kirby Corporation (KEX), Rand Logistics, Inc. (RLOG), Diana Shipping Inc. (DSX), CAI International Inc. (CAP), Aegean Marine Petroleum Networ (ANW), World Fuel Services Corp. (INT), Dow Chemical Co. (DOW), DuPont Fabros Technology, Inc. (DFT) and many more.

In the following excerpt from the Transportation and Logistics Report, an expert analyst discusses the outlook for the sector for investors:

TWST: What's the advice you're giving to investors regarding transportation and logistics at the moment?

Mr. Sterling: I tend to favor the asset-light companies, which can be flexible and nimble. A company like Expeditors comes to mind, which is one of my favorite ideas. I believe in U.S. energy independence, and I follow two companies that are great derivative plays regarding the U.S. energy renaissance.

The first is Kirby Corporation, which we have talked about because they are barging crude oil from the shales in both the lower Mississippi and Gulf of Mexico. I also like Quality Distribution, which is the largest chemical tank truck company in the United States. Quality's customers are similar to Kirby's, such as Dow Chemical, and Quality is also hauling oil out of the shales.

While the macro may be weak, there are opportunities for growth, and I think you have that with Kirby and Quality. In my opinion, shale drilling provides a great opportunity. Everybody talks about the crude by rail and pipeline opportunity, but no one is talking about the tank truck and barging opportunity to move crude oil. I think Kirby and Quality represent some undiscovered gems for investors.

TWST: Are the companies that you mentioned, Kirby for instance, ones that you see as being the top stock picks in the near future?

Mr. Sterling: Absolutely these are top picks in the near future. Kirby has great demand in their core chemical business because of low natural gas prices, but they are also now moving crude oil. I think shale drilling is here to stay, and the U.S. becoming energy independent is real. If you look longer term, companies like Kirby and Quality are very viable businesses with tremendous growth opportunities, both organically and through acquisitions...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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