FWIW, on Thur. I added to my long-term holding of AMERCO (UHAL).
I like UHAL, the company and stock, for a number of reasons:
1. Exceptional (IMO) brand name recognition-- UHAUL!
2. Diversified, but building on their franchise (e.g. they sell insurance, have public storage facilities, sell propane)
3. The stock price is below stated book value.
4. The stock is near a three year low.
5. Competitors - Ryder and Budget truck have announced price increases.
I don't like UHAL, the company and the stock for some other reasons:
1. The controlling family stockholders may not only be self serving (one family member owns a printing bus. whose customer is UHAL, there's a family real estate operation which may be tied into UHAL's real estate transactions, the family controls some maintenance service bus. for UHAL), but also the family may be "unstable" (I'm not qualified to give a medical opinion, but the patriarch's activities have been chronicled in at least one book).
2. Maintenance of vehicles seems to be a VERY big drag on earnings.
3. The business does not seem to be as profitable as it could be.
4. Management (the owner-family) does not seem to be as aggressive in pursuing business opportunities as they could be.
5. I've posted UHAL occasionally on SI over last couple of years. People whose opinions I value have indicated no interest or strong disinterest in this stock. Sometimes that's a good indicator to me that there's quite a bit of risk inherent for a potential buyer.
6. Just skimming over competitors - Ryder and Budget- the price of UHAL is comparable -- no great stock price discrepancy value (aside: I think Budget - BD - is okay too based on car rental business-- and I own some)
I see UHAL as viable (not likely to go out of business-- some growth and potential), and at its current low price, and low price in relation to book vale -- as a pretty decent value investment for someone with some patience (Sometimes that's me. Sometimes. -g-) within a diversified portfolio.
Just my opinion,and I've been wrong many, many times before. Paul Senior
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