5 Best Freight Stocks To Buy Right Now

Among recent actions by the SEC was the charging of a self-styled money manager for free-riding and fraud, while FINRA took on failures in WSPs and OATS compliance.

SEC Files Charges in Free-Ride Case

According to the SEC, Ronald Feldstein went for a free ride — literally — in a Bentley, thanks to a scheme in which he defrauded investors of almost half a million dollars and cost three brokerage firms more than $2 million.

Feldstein was charged by the SEC for a free-riding scheme in which he bought securities he never intended to pay for, should they prove unprofitable, and that he planned to pay for out of sales profits if the stocks went up. Instead, he planned to refuse to issue instructions to settle the trades and just walk away, leaving the broker-dealers holding the unprofitable positions.

He carried out this charade by means of three separate brokerage accounts in the names of two investment funds that he made up: Mara Capital Management and Vita Health of America. This lasted from September 2008 until February 2009.

5 Best Freight Stocks To Buy Right Now: Universal Truckload Services Inc (UACL)

Universal Truckload Services, Inc., incorporated on December 11, 2001, is engaged in providing transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec. The Company’s over-the-road trucking services include both flatbed and dry van operations and it provides rail-truck and steamship-truck intermodal support services. It also offers truck brokerage services, as well as full service international freight forwarding and customs house brokerage services. The Company provides truckload transportation and related services for a range of general commodities over irregular routes using dry and specialty vans and un-sided trailers, including flatbed, drop deck, and specialty. In December 2013, the Company announced that it has completed acquisition of Westport Axle Corporation.

The Company primarily operates through a contractor network of agents and owner-operators who provide the Company with approximately 3,100 tractors and approximately 3,000 trailers. At December 31, 2011, the Company had approximately 565 agents. The Company conducts its operations through its wholly owned operating subsidiaries under the brand names, such as Universal Am-Can, Ltd., Mason & Dixon Lines, Inc., Louisiana Transportation Inc., Mason Dixon Intermodal, Inc., Economy Transport, Inc., Great American Lines, Inc., Universal Logistics Solutions, Inc., Universal Logistics Solutions International, Inc. and Cavalry Transportation, LLC.

The Company provides services in three categories, such as truckload services, brokerage services and intermodal support services. The Company transports a range of general commodities, including machinery, building materials, paper, food, consumer goods, automotive parts, furniture, steel and other metals. During the year ended December 31, 2011, its truckload operations represented 60.5%, of its operating revenues.

The Company provides primari ly broker freight to third-party transportation providers th! rough its agent network at times when the Company generates more freight business than it can service with its available owner-operators. The Company offers full service international freight forwarding and customs house brokerage services, as well as third-party logistic services. During 2011, its brokerage services represented 24.8%, of its operating revenues. Its intermodal support services are primarily short-to-medium distance delivery of rail and steamship containers between the railhead or port and the customer and drayage services. During 2011, its intermodal support services represented 14.7% of its operating revenues.

The Company’s agents provide the primary interaction with its shippers. They generate freight shipments and also provide terminal and dispatch services for the owner-operators and are an essential source for recruitment of new owner-operators. The agents use a company-provided software program to list available freight procured by the a gent, dispatch owner-operators to haul the freight and provide all administrative information necessary for it to establish the credit arrangements for each shipper. The owner-operators are individuals who own, operate and maintain one or more tractors that they either provide drivers, or drive themselves. The Company’s owner-operators provide it with approximately 3,100 tractors. Owner-operators also may own trailers that they provide the Company in addition to their tractor and driving services. As of December 31, 2011, its owner-operators provided approximately 3,000 trailers, which represent over 50% of the trailers the Company use in its business.

Advisors’ Opinion:

  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Universal Truckload Services (Nasdaq: UACL  ) , whose recent revenue and earnings are plotted below.

  • [By Sean Williams]

    What: Shares of Universal Truckload Services (NASDAQ: UACL  ) , a North American provider of trucking and logistics solutions, jumped as much as 12% after receiving an upgrade from BB&T Capital Markets.

5 Best Freight Stocks To Buy Right Now: Chalmers Ltd (CHR)

Chalmers Limited is an Australia-based company engaged in transport, logistic services, warehousing and container storage, repairs and sales. The Company operated in three segments: Transport, Containers and Property. Transport consists of road transport, predominantly import/export FCL containers and the interface with logistics/ warehousing/hubbing services. Containers represent the empty container park operations concerned with handling, storage, repairs, upgrades, pretrips and so on of empty containers on behalf of shipping and leasing company customers. Property represents the capital investment Chalmers has in freeholds located in Melbourne. The Company’s subsidiaries include Chalmers Industries Pty Ltd, Chalmers (Australia) Pty Ltd and Chalmers Industries (Brisbane) Pty Ltd. Advisors’ Opinion:

  • [By Corinne Gretler]

    Chr. Hansen A/S (CHR) slid 1.7 percent to 186 kroner after Credit Suisse Group AG cut the stock to neutral, the equivalent of hold, from outperform. The brokerage said that profit from its natural-color business remains under pressure. The world’s biggest maker of dairy enzymes cut its full-year sales forecast on July 3 because of lower prices for the red pigment carmine.

5 Best Freight Stocks To Buy Right Now: Forward Air Corp (FWRD)

Forward Air Corporation operates in two segments: Forward Air, Inc. (Forward Air) and Forward Air Solutions, Inc. (FASI). Through the Company’s Forward Air segment, it is a provider of time-definite surface transportation and related logistics services to the North American deferred air freight market. It offers its customers local pick-up and delivery (Forward Air Complete) and scheduled surface transportation of cargo. It transports cargo that must be delivered at a specific time but is less time-sensitive than traditional air freight. As of December 31, 2011, it operated its Forward Air segment through a network of terminals located on or near airports in 85 cities in the United States and Canada, including a central sorting facility in Columbus, Ohio and 12 regional hubs serving key markets. It also offers its customers an array of logistics and other services including expedited full truckload (TLX); dedicated fleets; warehousing; customs brokerage; and shipment conso lidation, deconsolidation and handling. During the year ended December 31, 2011, approximately 23.9% of the freight it handled was for overnight delivery, approximately 61.3% was for delivery within two to three days and the balance was for delivery in four or more days. Through its FASI segment, it provides pool distribution services throughout the Mid-Atlantic, Southeast, Midwest and Southwest continental United States. Pool distribution involves managing high-frequency, last mile handling and distribution of time-sensitive product to destinations in geographic regions. In March 2013, it acquired Total Quality, Inc. In February 2014, Forward Air Corporation acquired Central States Trucking Co. and Central States Logistics, Inc. from Central States Inc.

Forward Air

The Company receives freight from air freight forwarders, integrated air cargo carriers and passenger and cargo airlines at its terminals, which are located on or near airports in the U nited States and Canada. It also picks up freight from custo! mers at designated locations via our Forward Air Complete service. It transports these shipments by truck through its network to its terminals nearest the destinations of the shipments. It operates scheduled service to and from each of its terminals through its Columbus, Ohio central sorting facility or through one of its 12 regional hubs. It also operates scheduled shuttle service directly between terminals where the volume of freight warrants bypassing the Columbus, Ohio central sorting facility or a regional hub. When a shipment arrives at its terminal nearest its destination, the customer arranges for the shipment to be picked up and delivered to its final destination, or it, in the alternative, through its Forward Air Complete service, deliver the freight for the customer to its final destination. Its airport-to-airport network consists of terminals located in the 85 cities. As of December 31, 2011, independent agents and FASI operate 18 and two of its Forward Air locat ions.

The Company operates direct terminal-to-terminal services and regional overnight service between terminals where justified by freight volumes. It provides regional overnight service to the markets within its network. Direct shipments also reduce the likelihood of damage because of reduced handling and sorting of the freight. It operates regional hubs in Atlanta, Charlotte, Chicago, Dallas/Ft. Worth, Denver, Kansas City, Los Angeles, New Orleans, Newark, Newburgh, Orlando, and Sacramento. During 2011, the average weekly volume of freight moving through its network was approximately 34.0 million pounds per week. During 2011, its average shipment weighed approximately 717 pounds and shipment sizes ranged from small boxes weighing only a few pounds to large shipments of several thousand pounds.

The Company’s logistics and other services allow customers to access services from a single source: expedited full truckload (TLX); dedicated fleets; cu stoms brokerage, such as assistance with the United States C! ustoms an! d Border Protection (U.S. Customs) procedures for both import and export shipments; warehousing, dock and office space; drayage and intermodal; hotshot or ad-hoc ultra expedited services, and shipment consolidation and handling, such as shipment build-up and break-down and reconsolidation of air or ocean pallets or containers.

Forward Air Solutions

Through the Company’s FASI segment, it provides pool distribution services through a network of terminals and service locations in 19 cities throughout the Mid-Atlantic, Southeast, Midwest and Southwest continental United States. Pool distribution involves managing high-frequency handling and distribution of time-sensitive product to destinations in specific geographic regions. Its customers for this product are regional and nationwide distributors and retailers, such as mall, strip mall and outlet-based retail chains. Its pool distribution network consists of terminals and service locations in the 19 cities. Its Forward Air wholesale customer base is comprised of freight forwarders, integrated air cargo carriers and passenger and cargo airlines. Its air freight forwarder customers vary in size from independent, single facility companies to international logistics companies, such as SEKO Worldwide, AIT Worldwide Logistics, Expeditors International of Washington, Associated Global, UPS Supply Chain Solutions and Pilot Air Freight. Its FASI pool distribution customers are consisted of national and regional retailers and distributors, such as The Limited, The Marmaxx Group, The GAP, and Aeropostale. The Company also participates in air cargo and retail trade shows and advertise its services through direct mail programs and through the Internet via www.forwardair.com and www.forwardairsolutions.com.

Advisors’ Opinion:

  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Forward Air (Nasdaq: FWRD  ) , whose recent revenue and earnings are plotted below.

5 Best Freight Stocks To Buy Right Now: Heartland Express Inc (HTLD)

Heartland Express, Inc. (Heartland), incorporated on August 8, 1986, is a short-to-medium haul truckload carrier. The Company provides regional dry van truckload services through its regional terminals plus its corporate headquarters. The Company transports freight for shippers and generally earns revenue based on the number of miles per load delivered. The Company’s primary traffic lanes are between customer locations east of the Rocky Mountains. The Company is a holding company of Heartland Express Inc. of Iowa, Heartland Express Services, Inc., Heartland Express Maintenance Services, Inc. and A & M Express, Inc. Heartland operates nine specialized regional distribution operations in Atlanta, Georgia; Carlisle, Pennsylvania; Chester, Virginia; Columbus, Ohio; Jacksonville, Florida; Kingsport, Tennessee; Olive Branch, Mississippi; Phoenix, Arizona, and Seagoville, Texas. The Company operates maintenance facilities at all regional distribution operating centers along wit h shop only locations in Fort Smith, Arkansas and O’Fallon, Missouri. In November 2013, Heartland Express Inc acquired 100% of the stock of Gordon Trucking, Inc.

The Company’s operations department is responsible for maintaining the continuity between the customer’s needs and Heartland’s ability to meet those needs by communicating customer’s expectations to the fleet management group. They are charged with development of customer relationships, ensuring service standards, coordinating proper freight-to-capacity balancing, trailer asset management, and daily tactical decisions pertaining to matching the customer demand with the appropriate capacity within geographical service areas. They assign orders to drivers based on well-defined criteria, such as driver safety and United States Department of Transportation (the DOT) compliance, customer needs and service requirements, on-time service, equipment utilization, driver time at home, operational effici ency, and equipment maintenance needs. Fleet management is r! esponsible for driver management and development. Their responsibilities include meeting the needs of the drivers within the standards that have been set by the organization and communicating the requirements of the customers to the drivers on each order to ensure successful execution. Serving the short-to-medium haul market (500 miles average length of haul in 2012) permits the Company to use primarily single, rather than team drivers and dispatch loads directly from origin to destination without an intermediate equipment change other than for driver scheduling purposes.

Advisors’ Opinion:

  • [By Ben Levisohn]

    Shares of Heartland Express (HTLD) rose today despite being cut by Stifel Nicolaus for valuation reasons.

    Bloomberg News

    Shares of Heartland Express have gained 50% this year, trumping the 38% rise in Con-Way (CNW) and the 29% advance in J.B. Hunt Transport Services (JBHT) but lagging Old Dominion Freight Lines (ODFL) and Swift Transportation (SWFT).

    That big gain was enough for Stifel’s John Larkin say no mas and cut his rating on Heartland Express. They explain why:

    Downgrading from Buy to Hold as the company’s shares appear fully and fairly valued. In fact, shares have recently traded through our 12-month fair value estimate of $19 (or 16.0x our 2015 EPS estimate of $1.15 plus ~$0.68 per share NPV of future cash tax benefits).

    Rating change is primarily valuation based as well as from our view that most transportation equities are trading ahead of the still mediocre underlying freight market fundamentals.

    BB&T’s Thomas Albrecht and team, who upgraded Heartland Express to Buy from Hold yesterday, explain why they think the stock will do just fine regardless of the economy:

    Heartland is an intriguing play upon both a slow-growth economy and a rapidly growing one (along with tight capacity). Many carriers are only able to thrive in the latter environment. With HTLD we believe that even in a sluggish economy it has a self-generating EPS story through the integration and growth of Gordon. Q3’13, a very difficult quarter for TL carriers, saw HTLD post a 79.3% OR versus 83.3%.

    The timing of the Gordon deal seems ideal, similar to the Great Coastal acquisition in mid-2002. Back then the TL market was stabilizing, but had yet to really take off, which occurred in the back half of 2003. Those 4-5 quarters allowed HTLD to assess customers, integrate operations, consolidate facilities and get ready for the next cycle. By the time that occurred HTLD was ready to take advantage of the capacity

  • [By Ben Levisohn]

    Heartland Express (HTLD) has dropped 2.2% to $19.12 after it was cut to Hold from Buy at Stifel Nicolaus.

    Allergan (AGN) was upgraded to Outperform from Market Perform at Wells Fargo.

5 Best Freight Stocks To Buy Right Now: Aurizon Holdings Ltd (QRNNF)

Aurizon Holdings Limited, formerly QR National Limited, is a rail freight operator. It owns and operates a coal network made up of 2,670 kilometers of heavy haul rail infrastructure. It provides specialist services in rail design, engineering, construction, management and maintenance, and offers supply chain solutions to a range of customers in Australia. Its business comprises three product lines. Coal business includes transport of coal from mines in Queensland and New South Wales to end customers and ports. Freight business includes transport of bulk mineral commodities, including iron ore, agricultural products, mining and industrial inputs and general freight throughout Queensland and Western Australia. Network Services business provides access to, and operation and management of the Central Queensland Coal Network. In January 2014 the Company announced that National Australia Bank Limited and its associated entities has ceased to be the substantial holder of the Company . Advisors’ Opinion:

  • [By MARKETWATCH]

    LOS ANGELES (MarketWatch) — Australia stocks enjoyed early Monday gains after an advance for commodities and U.S. stocks since the last session, with a relatively good reception for earnings. The S&P/ASX 200 (AU:XJO) improved by 0.4% to 5,376.30, with miners tracking gains in gold and copper. Rio Tinto Ltd. (AU:RIO) (RIO) added 1.3%, and Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) traded 1.1% higher, while gold miners Newcrest Mining Ltd. (AU:NCM) (NCMGF) and Kingsgate Consolidated Ltd. (AU:KCN) (KSKGF) rallied 2.2% and 4.7%, respectively. Banks rose after Wall Street shares climbed on Friday, with National Australia Bank Ltd. (AU:NAB) (NAUBF) up 1% and Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) adding 0.9%, though Commonwealth Bank of Australia (AU:CBA) (CBAUF) dropped 2.4% as it traded without rights to its latest dividend. Coal transport firm Aurizon Holdings Ltd. (AU:AZJ) (QRNNF) tacked on 2.1% as its fiscal first-half underlying profit increased 18%, though net profit f