Topic: How To Invest

Hello Pat: Can I please have your opinion on TransForce? Thank you.

Article Excerpt

TransForce Inc., $12.87, symbol TFI on Toronto (Shares outstanding: 96.5 million; Market cap: $1.2 billion; www.transforcecompany.com), is a leading Canadian trucking company. Its fleet is the largest in the country, with 10,500 trucks and 11,300 trailers. The company also has exclusive partnerships that extend its reach into the U.S. Montreal-based TransForce was an income trust from September 2002 to May 2008. It has four main divisions: Truckload Shipping, which accounts for 25% of TransForce’s revenue, involves transporting a single customer’s goods on each truck. Package and Courier (34% of revenue) delivers parcels between businesses under the Canpar and ICS Courier banners. Specialized Services (22% of revenue) manages waste and transports and stores goods for businesses, including oil and gas firms. Less Than Truckload shipping (19% of revenue) combines freight from multiple customers onto a single truck. In the three months ended September 30, 2011, TransForce’s revenue rose 48.7%, to $743.0 million from $499.5 million. The increase mostly came from companies that TransForce bought…