Wabash National (WNC)

(A Top Pick June 26/14. Down 8.71%.) A trailer producer, mostly for commercial trucks, and doing extremely well. The stock dipped way down in November, on what he had thought was relatively nuded news. It has come right back. This year has produced about 65,000 commercial trailers. Average age of trailers on the highway is pushing about 12 years. As trailers age, insurance rates go up, so it becomes more costly for fleets to have older equipment. He expects good things to happen and a good opportunity for somebody looking for a spot in their portfolio.

Took a big hit. In his estimation, the earnings were not terrible. The core of the earnings, which is the number of units they are selling, was very positive. This is a small cap, which tend to be more volatile and inherently riskier.

He has a model price of $15.52. He kind of likes the small manufacturing companies. He is a Large Cap investor, and feels there is a lot of value in Large Cap so he wouldn’t fool around with these mid tier stocks. There is so much value in the top 100 of the S&P 500.

The replacement cycle of trucks has really taken hold. Trailers rust when they sit out all the time and it is a very costly situation for trucking companies because they pay higher insurance rates for older fleets. We are now in the middle of a very nice cycle. This company is getting the double whammy of volume sales and increased prices.

(A Top Pick Nov 21/12. Up 44.74%.) Sells trailers for trucks. An interesting statistic for trailers is that there has never been an older fleet in America, they are over 9 years old, and it is costly for the truck companies. Thinks they will make $1 a share next year so it is still a Buy.

A very nice pickup today. Thinks there is more to come with this company. A good entry point. Margins are increasing. What we need is volume and that is next. Has significant upside.