CNF Transportation is an interesting parent of three : Emery Worldwide, Menlo Logistics, and Con-Way Transportation. Emery just won a 1.7 billion contract to handle priority mail for the USPS for 13 states in the eastern US, the largest ever given by the USPS. Fed Ex and UPS couldn't bid because they are considered competitors; CNF via Emery has a great shot at more priority mail states. Even so, Con-Way is solid transport cyclical holding, and Menlo's growing rapidly. See: biz.yahoo.com You get 20% ROE paired to a 2.3 P/B, and $2.50 or so in earnings for $34 bucks. There's a big cyclical component, and the Postal contract is still up in the air. Let's discuss it.
Michael Burry |
