67 WALL STREET, New York - October 11, 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, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Truckload, LTL, Parcel, Rail and Intermodal - Technology Adoption and Infrastructure Investments - International Shipping and Transportation
Companies include: United Parcel Service, Inc. (UPS), FedEx Corporation (FDX), Navios Maritime Holdings Inc. (NM), Teekay Tankers Ltd. (TNK), Teekay Offshore Partners LP (TOO), A.P. Moller Maersk (CPH:MAERSK-A) and many others.
In the following excerpt from the Transportation and Logistics Report, an experienced Transpotation and Shipping sector equity research analyst discusses the outlook for the sector for investors and his top stock picks:
TWST: Could you start with an overview of the particular segment of the transportation and logistics sector that you follow?
Mr. Combe: It's pretty much everything except airlines. Since 2003, I've been focused on mostly European-based ground, sea and air industrial freight providers, and over the last few years, since I've been at J.P. Morgan, on U.S.-listed shipping companies. So it spans maritime, trucking, express, post and also the sea ports, freight brokerage, and supply chain, also known as contract logistics. Within the shipping universe, that means all sorts of owners: container, tanker, dry bulk and LNG. We also have one name which is in the offshore space. It's a pretty broad remit, and following names like A.P. Moller Maersk (CPH:MAERSK-A) also gives us exposure to oil and gas.
TWST: So it is a pretty large portfolio then?
Mr. Combe: It is. Prior to 2003, I was at Bear Stearns, covering U.S. transports. There the focus was U.S. trucking and freight forwarders, for the most part. But it is more of a mixed bag in Europe when you follow the sector, and I guess that is pretty much everything, excluding airlines. Just this past year, we expanded into the U.K. bus and rail sector. Another team member - that is her focus.
TWST: What are some of the companies among these that you follow?
Mr. Combe: The larger household names over here include A.P. Moller Maersk. It is the world's largest container shipping company and placed in Denmark; its market cap is over 200 billion krone, or nearly $40 billion. Deutsche Post DHL (DPW.DE), which owns DHL, is a familiar brand in the express world and a global competitor to UPS (UPS) and FedEx (FDX) in most markets excluding domestic U.S., where they left the market after sustaining painful losses; TNT Express (TNTE.AS), a largely European express provider; and then there is Kuehne + Nagel (KNIN.VX), the world's largest sea freight broker. These are a few examples of the large-cap European names.
Then there are the shipping companies, which tend to be quite a bit smaller, usually $1 or $2 billion maximum market cap. Those are names like Navios (NM), Teekay (TNK) and GasLog (GLOG), all U.S.-listed. On the ports side, you have DP World (DPW.L), which is one of the largest listed entities with a global ports network.
TWST: Is there a particular theme or trend that emerges from the various different segments of the transportation and logistics, related to how the companies are performing?
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.