Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to Profit From America's Rust Belt

Companies / Sector Analysis May 08, 2013 - 11:04 AM GMT

By: Investment_U

Companies

David Fessler writes: I want to introduce you to a company the mainstream media has completely ignored. But don’t let the lack of attention fool you. It’s the largest and best company in its sector.

It’s the perfect Rust Belt Revival pick-and-shovel play.

We’ll get to the company in a moment. First, let’s take a close look at its industry. It’s called logistics.


Boring, right? Not so fast…

Remember, logistics is the business of moving stuff. It can be physical materials such as oil and other liquids, food, equipment, and materials. It also can be abstract things such as particles, energy, information and time. The company I’m excited about deals only in the logistics of physical materials.

It’s a business that’s growing faster in the Rust Belt than anywhere else.

Location, Location, Location
According to David W. Holt, chairman of the Conexus Indiana Logistics Council, the reasons for the fast-paced growth are straightforward. “One reason we are attractive for logistics is location,” he said. “We are in the middle of the country, with a lot of interstates. Our state is also in good fiscal shape, in addition to being a low-tax state.”

Chicago and its surrounding region is also a big area for logistics growth. The world’s seventh-largest container shipping company, APL Ltd., recently completed an intermodal container terminal in Joliet, Ill.

Gene Seroka, APL’s president of the Americas for Container Shipping, explains why APL decided on Joliet. “The terminal is located in CenterPoint Intermodal Center, the largest inland port in the U.S.

“[It's] adjacent to the rail ramps of the main U.S. east-west railroads. It is located close to the Union Pacific and BNSF Intermodal Rail Terminals, as well as numerous customer warehouses and distribution centers.”

Intermodal shipping is a major driver of the Midwest logistics boom. Another huge reason is the boom in oil and natural gas in Middle America.

In recent survey of trucking firms, 95% of respondents said they expect their businesses to grow this year. When asked if the growth of unconventional shale energy would have an effect, 97% indicated it would.

In fact, shale energy production is expected to be responsible for 16% of all future growth in the trucking business.

The graph below, courtesy of the Ohio law firm Benesch, depicts anticipated sector growth in Ohio and across the nation.

It’s clear the shipping sector is going to benefit from all of the new companies moving into Middle America. But it will also benefit from existing firms reshoring and expanding their operations in the booming Rust Belt.

We’ve written about this phenomenon for the last three weeks. You can read about it here, here and here.

The Best in the World
Like I said, the best third-party logistics company in the United States also happens to be the world’s largest.

C.H. Robinson Worldwide (Nasdaq: CHRW) works with 56,000 transportation companies. These include railroads, trucking companies, ocean carriers and airfreight companies.

Last year, C.H. Robinson handled about 11.5 million shipments from more than 42,000 customers.

But what makes C.H. Robinson a great investment? No other third-party logistics company comes close to the size and scale of C.H. Robinson’s operating network.

The company has kept a long-term compound annual growth rate (CAGR) target for revenues, income and earnings-per-share (EPS) of 15% since its formation.

But talk is cheap. Any company can set lofty goals. The hard part is reaching those goals.

For the last decade, C.H. Robinson’s performance has mostly met or beat its targets. Its revenues, income and EPS grew at an average CAGR of 13.5%, 17.1% and 18.2%, respectively.

Nice.

As if that isn’t reason enough to buy the stock, the company currently boasts a dividend yield of 2.4%. Over the last five years its annualized dividend growth rate is 9.6%. Plus, the company has a long history of buying back its stock.

The booming Rust Belt Revival in Middle America bodes well for this Eden Prairie, Minn., logistics powerhouse. The stock currently trades about 10% off its 52-week high.

It’s one more example of the kind of moneymaking potential flowing out of our Rust Belt Revival.

Good investing,

Dave

P.S. There are six companies leading what I call the Rust Belt Revival in Middle America. If their plans are successful it could end the deficit, bring unemployment back to 4%, send the Dow to upward of 20,000, and place $8,000 in the pocket of every American.

Best of all, even small shareholders in these companies are on course for huge payouts.

For more about this bold $1.2 trillion plan, click here.

Source: http://www.investmentu.com/2013/May/best-rust-belt-revival-stock.html

http://www.investmentu.com

Copyright © 1999 - 2011 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in