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Small Cap Value: Arkansas Best Corp. and Old Dominion Freight Line

November 21, 2009 | About:
Henry W. Schacht

Henry W. Schacht

13 followers

About the author:

Henry W. Schacht
Henry W. Schacht, CFA is the founder of Schacht Value Investors, an investment management firm serving individuals and institutions. He currently serves as President and Chief Investment Officer. He earned his MBA at the University Of Chicago Graduate School of Business and a BBA in finance from the University of Notre Dame. Mr. Schacht is a member of the Association for Investment Management & Research (AIMR), the Investment Analysts Society of Chicago (IASC), and the National Association of Corporate Directors (NACD).

Rating: 3.3/5 (10 votes)

Comments

batbeer2
Batbeer2 premium member - 4 years ago
Interesting pick; thank you for sharing your analysis. I agree that ABFS looks like a likely survivor.

One question: Does the company plan to change its compensation strategy ?

Over the past decade they have spent (net) some 40m buying back stock. This has not prevented the share count from increasing by 25% over the same period. One could argue that the shareholder has been paying someone 15m anually.

Sivaram
Sivaram - 4 years ago


BatBeer2: "Over the past decade they have spent (net) some 40m buying back stock. This has not prevented the share count from increasing by 25% over the same period. One could argue that the shareholder has been paying someone 15m anually."

At least book value per share, revenue per share, and so on, have gone up significantly over the decade. So, although increasing share count doesn't look good, fundamental improvements are outstrippping the increasing shares.

This company is very cyclical for sure. I have no idea if EPS is any better now than a decade ago. Interesting pick...
hschacht
Hschacht - 4 years ago
22% in 3 weeks for ABF... not bad. A 3-star article, really???
batbeer2
Batbeer2 premium member - 4 years ago
A 3-star article, really???

LOL.... look up RSG, LXK, TX, WCG, LVB, AYR .... most stocks analysed on this forum that subsequently rise by 50% or more within the year get three stars or less.
yswolinsky
Yswolinsky - 4 years ago
royce funds hold 10% of the shares of abfs

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