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Opinions Keith Richards
Logistec CorpLGT.B.TOCOMMENTApr 15, 2014
Keith RichardsStock price when the opinion was issued
As of Jan 08, 2024. Market Open.
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It is in the marine cargo handling business with over 60 ports in North America. It recently made a very big acquisition which gives it a very strong position in the Great Lakes area. Has had record results of $4 per share and trades at10X P/E. They have owned it for many years and it hasn't been this cheap in a long time. The other side of the business is in environmental services including soil/water remediation and water pipe repairs - they have a record backlog.
Has owned if for 15 years and made 8x his money. Would buy it now. They unload cargo from ships, and business is booming in North American ports. Their environmental division is growing fast, owning proprietary tech to repair water pipes. Company has been reporting record results. The PE has never been lower at 10x.
Colin Stewart(A Top Pick March 22/16. Down 9%.) This has been one of his biggest winners over the last 10 years, going from $8 to $70. However, it has been treading water for the last 2 years or so. Last year was rough with marine cargo volumes being down. They’ve expanded some operations, so costs went up. Also, had a terrible fire in Georgia, which basically had them shut down for almost a year. Just came out with a very, very strong 4th quarter and announced some acquisitions and new contracts. In 2017 you are going to see this get back on the path of growing their top and bottom lines. This is still a Buy.
Chart shows an enormous parabolic move in the last part of 2013. A move like this will eventually be corrected in some way. It could be through consolidation or an outright pull back. In this case, there is a little bit of consolidation. As long as it holds in the low to mid $50s it looks okay. If it breaks, then you have a topping formation in play. Just be very, very careful that the support level does not break.