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Technical Trade Alerts on Air Delivery and Freight Service Stocks: FDX, UPS, CHRW, UTIW, EXPD, PACR for March 17

Today’s Trade Alerts include: FedEx Corp. (NYSE: FDX), United Parcel Service Inc. (NYSE: UPS), C.H. Robinson Worldwide Inc. (Nasdaq: CHRW), UT Worldwide Inc. (Nasdaq: UTIW), Expeditors International of Washington Inc. (Nasdaq: EXPD) and Pacer International Inc. (Nasdaq: PACR).

FedEx Corp. (FDX) Trade Alert – FDX Expresses Disappointment on Anti-Competitive Legislation Approval, Offers Free Resume Printing for Job Seekers

FedEx Corp. (FDX) shares rose 2.27% to $41.07 in today’s early trading. FedEx provides transportation, e-commerce and business services in the United States and internationally.

The U.S. House Transportation and Infrastructure Committee recently approved the Federal Aviation Administration (FAA) Reauthorization Act that facilitates unions like the International Brotherhood of Teamsters to organize FedEx employees. The act now goes to the House floor, taking away provisions that made it difficult for FedEx drivers to join local unions. It now changes the jurisdiction of how some employees can be organized – from national to local bargaining units.

On its part, FedEx recently expressed it is “deeply disappointed” that the committee “voted to approve anti-competitive legislation that unfairly benefits one company – the much-larger UPS. We strongly urge the House to reject this legislation before the inherent economic damage threatened by vote becomes a reality.”

FedEx Office also recently helped out job seekers by offering one day free resume printing. FedEx Corp. subsidiary will offer up to 25 free copies of resumes submitted and picked up inside a store for customers currently seeking for a job. According to the U.S. Department of Labor, there were 11.6 million unemployed Americans as of January.

FedEx operates in four segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. The FedEx Express segment offers various shipping services for the delivery of packages and freight. This segment also provides international trade services specializing in customs brokerage and global cargo distribution; customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports; and international trade advisory services, including assistance with the customs-trade partnership against terrorism program.

The FedEx Ground segment provides business and residential money-back-guaranteed ground package delivery services; while the FedEx Freight segment offers less-than-truckload freight services; long-haul LTL freight services; and airfreight forwarding services between the United States and Puerto Rico.

The FedEx Services segment provides sales, marketing and information technology support, as well as customer service support; office and print services; document solutions and business services; and supply chain solutions.

In today’s daily chart, FDX’s MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price action. With share prices currently above the stock’s 13-day moving average, a bullish trend is generally indicated.

United Parcel Service Inc. (UPS) Trade Alert – UPS Accelerates Transit Times for Wisconsin and Michigan, Guarantees Time-definite Service

United Parcel Service Inc. (UPS) shares climbed 1.41% to $45.36 this morning. UPS, a package delivery company, provides transportation, logistics, and financial services in the United States and internationally.

In its continuing drive to improve service, UPS Freight, the heavy freight arm of UPS, recently announced accelerated transit times for large sections of Wisconsin and Michigan. Its enhancements include next-day service between new direct points in Wisconsin and Michigan linking Chicago, Minneapolis and Milwaukee.

As in previous enhancements, the company said the new transit times will be covered by UPS Freight’s time-definite guaranteed service for all shipments moving under the current 560 Tariff. This allows UPS Freight’s LTL customers to manage, track and process their shipments through UPS WorldShip and Quantum View Manage technology.

UPS Freight also announced improved transit times on 2,250 lanes affecting customers throughout Texas and southern Oklahoma in February. That enhancement covered some 385 Zip codes. Overall, UPS Freight has reduced transit times on some 15,500 lanes over the last 21 months.

UPS Freight is one of the largest less-than-truckload carriers in the United States and a leading truckload service provider. It serves customers throughout North America, Puerto Rico, Guam and the U.S. Virgin Islands.

UPS operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment operations include time-definite delivery of letters, documents and packages in the United States.

The International Package segment provides air and ground delivery of small packages and letters to approximately 200 countries and territories, including shipments outside the United States and shipments with either origin or distribution outside the United States; export services; and domestic services move shipments within a country’s borders.

The Supply Chain & Freight segment offers forwarding and logistics services, including supply chain design and management, freight distribution, customs brokerage, mail, and consulting services; and less-than-truckload and truckload services to customers in North America. In addition, it offers various technology solutions for automated shipping, visibility and billing; service, information technology systems, and distribution facilities to various industries, such as healthcare, technology and consumer/retail; and a portfolio of financial services that provides customers with short-term and long-term financing, secured lending, working capital, government guaranteed lending, letters of credit, global trade financing, credit cards and equipment leasing.

As of December 31, 2008, the company operated a fleet of approximately 107,000 package cars, vans, tractors and motorcycles, as well as an air fleet of approximately 570 aircraft.

In today’s daily chart, UPS’ Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price action. MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. With share prices currently above the stock’s 13-day moving average, a bullish signal is indicated, weakened by a significant liquidating volume as reflected by downward sloping moving averages.

C.H. Robinson Worldwide Inc. (CHRW) Trade Alert – CHRW Declares Quarterly Cash Dividend of 24 Cents per Share, Posts 4.3% Q4 Profit Increase

C.H. Robinson Worldwide Inc. (CHRW) shares climbed .43% to $44.22 at today’s opening bell. C.H. Robinson operates as a third-party logistics company. It provides freight transportation services and logistics solutions to companies in various industries.

The company recently announced its board of directors declared a regular quarterly cash dividend of 24 cents per share, payable April 1, 2009, to shareholders of record March 6, 2009. C.H. Robinson has distributed regular dividends for more than 25 years.

As stronger truck and ocean operations helped offset higher expenses and weaker air operations, C.H. Robinson said its fourth-quarter profit increased 4.3%. Its net income climbed to $88.9 million, or 52 cents per share, compared with $85.3 million, or 49 cents per share, in the year-earlier period. Analysts polled by Thomson Reuters expected, on average, earnings per share of 52 cents per share.

C.H. Robinson’s sales climbed to nearly $2 billion from $1.95 billion. Analysts expected $2.18 billion. Its gross profit from truck operations increased to $256 million from $248 million while gross profit from ocean operations rose to $18.6 million from $11.9 million. Its total operating expenses climbed to $201.8 million from $189.9 million; much of the increase attributable to an increase in selling, general and administrative expenses.

For the full-year 2008, the company earned $359.2 million, or $2.08 per share, compared with $324.3 million, or $1.86 per share, on sales of $8.58 billion, up from $7.32 billion in 2007.

C.H. Robinson, through its relationships with approximately 50,000 transportation companies, including motor carriers, railroads, air freight and ocean carriers, selects and hires the appropriate transportation to manage its customers’ freight needs.

In addition, the company operates fresh produce sourcing and fee-based information services businesses. Fresh produce sourcing business includes purchasing fresh produce for regional and national grocery retailers and restaurants, produce wholesalers, and foodservice distributors, as well as arranging the transport of the fresh produce through relationships with owners of specialized transportation equipment. It offers the fresh produce under proprietary brands The Fresh 1, Fresh’n Easy, Our World Organics, Tropic Sweet, Tomorrow’s Organics, and Kensington Farms, as well as under various licensed brands, such as Mott’s, Tropicana, Welch’s and Bambino.

C.H. Robinson’s information services business includes providing management and information services, such as fuel management services, funds transfer, permit procurement, fuel and use tax reporting, and driver funds transfer primarily to motor carriers.

In addition, the company captures sales and fuel cost data, provides management information, transfers funds to the truck stop, and invoices the carrier for fuel and cash advances, serving various companies and truck stop chains. As of December 31, 2008, it operated a network of 228 branch offices in North America, Europe, Asia, South America and the Middle East.

In today’s daily chart, CHRW’s MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price action. With share prices currently above the stock’s 13-day moving average, a bullish signal is generally indicated, weakened by a significant liquidating volume, as reflected by downward sloping moving averages.

UTi Worldwide, Inc. (UTIW) Trade Alert – UTIW Receives Buy Rating from Analyst, Names New Chief Executive

UTi Worldwide, Inc. (UTIW) shares slipped 1.31% to trade at $12.06 this morning. UTi Worldwide, through its subsidiaries, operates as a supply chain services and solutions company.

An analyst recently upgraded UTi Worldwide stock to Buy from Hold, citing the company’s growth potential. Stifel Nicolaus analyst David Ross said the company’s recent change in leadership and its “financially sound” business model positions it well for the future. The company recently named a new CEO, former UPS Supply Chain Solutions president Eric Kirchner.

However, Ross warned that benefits may be slow to develop from the leadership shift. He said a successful transition, along with consistent internal improvements, a continuation of global trade growth, and stable financial markets should drive the stock.

The analyst further said global growth and the company’s exposure to the auto and retail sectors remain UTi’s biggest risk factors. But he noted that most of the company’s contracts are long-term and therefore less susceptible to swings in trade growth.

UTi Worldwide’s services include air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage, and other supply chain management services, including consulting, co-ordination of purchase orders, and customized management services.

The company serves various industries, such as pharmaceutical, retail, apparel, chemical, automotive and high technology electronics industries. UTi Worldwide offers its services through a network of freight forwarding offices, including independent agents, and contract logistics and distribution centers worldwide.

In today’s daily chart, UTIW’s MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price action. With share prices currently above the stock’s 13-day moving average, a bullish trend is generally indicated.

Expeditors International of Washington Inc. (EXPD) Trade Alert – EXPD Receives Analyst Comments on Annual Report, Posts Q4 Results Better than Analysts’ Forecast

Expeditors International of Washington Inc. (EXPD) shares climbed 1.50% this morning, trading at $27.74. Expeditors provides logistics services in the United States and internationally. Its customers primarily include computer retailers, distributors of consumer electronics, department store chains, clothing and shoe wholesalers, manufacturers and catalogue stores.

An analyst for Robert W. Baird & Co. warned that the recession and slowing global trade will hurt Expeditors. Jon A. Langenfeld said, in a note to Baird clients, Expeditors’ recently issued annual report confirmed that airfreight volumes were under pressure and that ocean-freight volumes had contracted. He said volumes would remain challenged into 2010, limiting the upside of the company’s shares.

Expeditors said its UK subsidiary, Expeditors International (UK) Ltd., has received an additional request for information issued by the European Commission (EC) in connection with an ongoing investigation of freight forwarders.

Expeditors also recently reported solid fourth-quarter results, with earnings of a penny per share better than analysts had expected. It reported earnings per share of 36 cents per share for the period, compared with 35 cents per share expected by analysts polled by Thomson Reuters.

Citi Investment Research analyst Matthew Troy called the results “solid” considering the “unprecedented contraction in global trade.” Citing these steep declines, Troy said that Expeditor’s results reflect the strength of its business model and corporate culture. Troy recommended investors to buy up shares on any dips in value.

Expeditors’ services include consolidating or forwarding air and ocean freight; distribution management; vendor consolidating; providing cargo insurance; purchase order managing; and offering customized logistics information.

Its airfreight services comprise the procurement of shipments from its customers; determination of the routing; consolidation of shipments bound for a particular airport distribution point; and selection of the airlines for transportation to the distribution point.

The company also offers breakbulk services that include receiving and breaking down consolidated airfreight lots and arranging for distribution of the individual shipments. Its ocean freight and ocean services include freight consolidation from Asia to the United States; and handling full container loads.

Expeditors also acts as a customs broker, who assists importers to clear shipments through customs by preparing required documentation and calculations, as well as provides other value added services at destination, such as warehousing and product distribution, time definite transportation, and inventory management. In addition, it offers custom clearances for goods moving by rail and truck.

In today’s daily chart, EXPD’s MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price action. With share prices currently above the stock’s 13-day moving average, a bullish trend is generally indicated.

Pacer International Inc. (PACR) Trade Alert – PACR Reports 61% Q4 Adjusted Profit Decline, Receives Analyst Downgrades and Price Target Cut

Pacer International Inc. (PACR) shares surged 6.67% in today’s early trading, moving to $2.40. Pacer operates as a non-asset based third-party logistics provider in North America. As of December 26, 2008, the company’s equipment fleet consisted of 1,849 double-stack railcars, 28,681 containers, and 29,904 chassis.

The company recently reported an adjusted fourth-quarter profit well below Wall Street’s expectations and suspended its dividend. Mostly due to a sizable writedown, Pacer posted a fourth-quarter loss of $1.87 per share. Excluding this item, Pacer earned 24 cents per share – a decline of 61% from a year earlier. Analysts polled by Thomson Reuters expected 33 cents per share.

Recently, two analysts cut their ratings on the stock. A Morgan Keegan analyst cut the stock to Market Perform from Outperform, and a Baird analyst cut his rating to Underperform from Neutral.

Stifel Nicolaus & Co. analyst John Larkin recently cut his 2009 forecast to $1.10 cents from $1.35 per share. In addition to economic hurdles, Larkin said the company’s decision to suspend its 15 cent quarterly dividend and not revealing an earnings prediction for 2009 does not allow investors to accurately gauge the company’s future. Despite maintaining his Buy rating, Larkin cut his price target on the stock to $15 from $20.

Citing “the uncertain nature of this year’s economy,” the company announced the move to suspend dividends in its quarterly earnings conference call. Pacer paid $20.8 million to shareholders in the form of dividends in 2008.

Pacer operates in two segments, Intermodal and Logistics. The Intermodal segment provides stacktrain, rail brokerage, and local cartage services principally to intermodal marketing companies, truck brokers, truckload carriers, automotive intermediaries, and international shipping companies. This segment also offers ramp-to-ramp and door-to-door services.

The Logistics segment provides highway brokerage and truck services, international freight forwarding, warehousing and distribution, and supply chain management services to end-user customers. This segment also offers airfreight forwarding services as an indirect air carrier.

In today’s daily chart, PACR’s MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price action. With share prices currently below the stock’s 13-day moving average, the bearish signal is more pronounced with decreasing moving averages.

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