Richard: I'll reject USAK just on its price/BV alone -g-
'Course I've been wrong many, many times before -g-. And it's got the highest rating from Zacks per Yahoo. But really, it's a general transportation company, so IMO book value is a good place to start. And they are trading way above book. And times are good. Just look at that ROE-- it's terrific.
Now just how competitive could the general transportation trucking biz. be? It's not even specialized, say like SIMN in refrigerated services (--I look at that one every once in a while, but I don't own it--- caution: if using Yahoo. Yahoo, like for Swisher (sigh) shows the wrong bv figures for SIMN.). Hey, I've seen those Hollywood movies about the trucking biz.-- those people would break your legs for a penny more in eps. So that ROE is not sustainable -- ALL these companies are going to expand if things are that good -- and the price to book value ---in this particular instance-- does tell us (well, me anyway)... back off... Although as I say, I've been wrong many, many times...
good hearing from you, Paul Senior. |
