Add a New Bulls Reason Industry: Trucking Headline: (100 character max) Analysis: Cancel 100% agree 1 votes   Bankruptcies has contracted supply Top Contributor: Marcel Chudoba | Last edited on 02/10/09 | Edit | History I regularly read a good newsletter that follows this sector, and they suggest some interesting events. The trucking industry saw a decline in freight volumes beginning in mid-2006. It increased slightly in 2008, but the expected disappointing holiday season resulted in a very low October. Add to this the spike in gas prices last year (diesel here), and the combined effect put a squeeze on many transportation firms. A weed-out phase ensued and trucking company bankruptcies peaked in Q2 2008. The surviving firms are consolidating, picking up assets to position themselves for a rebound in the economy. This eliminates some of the excess demand and makes the remaining firms well positioned for recovery, when it happens. I'm writing this in the bull column because this indutry has obviously taken a beating but in a turnaround will be one of the first firms to benefit as materials start moving again before production in the manufacturing sector picks up. Potential value buy in three months, or now if you don't mind the dead money. (100 character max) Cancel

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