May 2nd, 2008
LSTR: Landstar Bandwagon Gains Momentum
Landstar (LSTR - Annual Report) has long been one of my favorite stocks. I have said before that I would be willing to own Landstar up to a parity yield with Treasuries, because I think the growth alone is sufficient premium for the risk. Based on the 2007 cash flows and the current yield on 5-year Treasuries, that implies a potential price of $84 - so its safe to say I don’t expect to sell any time soon.
If you want a quick understanding of what Landstar does, it was the featured stock in today’s Wallstrip. As such, Brian Shannon chimed in with his review, saying “there is nothing wrong with this stock technically.”
Disclosure: At time of publication, William Trent has a covered call position in shares of Landstar (LSTR - Annual Report).
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