RE:RE:M. Mullen, exhausted of portfolio mgr and being comparedTFII These unloved stocks gets into our heads at some points and brings so much doubts I can really relate to your reaction (windsorman). Buying it back a this great price is great, letting the ego aside (our worse hidden enemy, at least mine).
Today 6% yield is good, I hope in 2 years a 4% dividend is going to be good. This brings MTL to 21$ with no dividends increase. Adding up for 2 years montly dividends gets us with really nice return.
With around 50% payout ratio on average, this gives room for acquisitions and.. dividends and earnings increases. LTL and logistics will bounce back and earnings will do as well.
In 3-4 years, I hope to gets to 180-200M$ earnings.
They got the credit facilities for acquisitions, lets cross our fingers that they finds 3-4 tuck ins. MTL leverage is really low when real estate is considered. TFII sold many real estate to finance growth and isolated higher return on equity activities to please pure plays fanatics.
With MTL, its almost like if you own a REIT and Transportation company together, the two reducing the risk of each other, at a discounted price. Its a 2 for 1 to me at current price.
I intend to hold on to my share a long way up!
GLTA