Mar. 25 - Dalton Greiner's Donald Porter says trucking company Old Dominion benefits from secular growth and its ability to grow market share while Knight faces higher driver costs and slower rate increases.
If you like your stock portfolio -- keep on truck and think transportation stocks in the take one funny baffling that they've -- quarter. He's going to be the reason why he -- Old Dominion freight line. Overnight transportation. Don lesson number one reason that you like ultimate. -- secular group. Holidays. They have -- low cost the efficient network and the less than for -- space. They are currently 6% of market they're gonna take share from both are unionized and non unionized here is currently 30% of the market to unionize unionize they're gonna picture. Think this -- and Q4 earnings they did in this weather related items including sandy they also missed because there was there was more holidays. In the workforce that's frankly an opportunity to and -- stock was down about 5% after earnings. It's not there great company varied who have long term prospects so what's. Late night why don't like. You truckloads base. Is -- tougher place to be. Knight is seeing it -- revenue record breaking off track the growth now from rate increases. The rates are going up pretty low 3% and their driver inflation is going up and increasing our rate because the construction markets coming back. Yet still they are doing well. That is that is the problem for markets it. All right that's not a problem opening but what -- at least that's -- -- mean risk would be more macro risks to -- -- cost network. If we see you slowdown in the macro it pricing it becomes negative. You have pressure on offering let's look at the numbers -- look at valuation wise like -- -- -- value right for -- -- -- is -- -- Enterprise value the world means is that you know half times. Slightly cheaper for night but it is more expensive on the basis. So again I don't I I think -- at times or will it mean to expedite the pay for a company that has -- And Europe profit on about it that I know what that is what family owns 25% so I don't perceive it pertains. And -- And in terms of world talk a little bit more. That what. If so I I think yet report -- -- what the market these guys have done anything about it going football it's tonnage as well as price. Which -- on on news. -- Loan. -- I thought I thought well that isn't going to be this week take one funny I brought this up -- this is related.