In an effort to increase productivity, companies are looking to cut back on transportation costs, by super-sizing ships, trains and trucks. At the present, there is a Federal pilot program in place that allows trucks to carry 100,000 pounds, up from the legal limit of 80,000. The pilot program lapses in December. So, the fuckheads in DC are certain to jam a bill through, in order to “save” the trucking industry, yet again. Who gives a shit about roads and bridges? WMT needs to beat the street!
At any rate, one of the little caveats is the trucks must be outfitted with 6 axles, in order to support the additional weight. Trucking company plays have been on fire this year, led by gains in CMI. However, if this bill passes, the gains should accelerate, barring some sort of fucked up economic apocalypse. Margins will go up for retailers and trucking parts makers will enjoy a boom.
Some axle plays on my list includes: AXL, ARM and DAN.
As for this market:
THE PROPHECIES OF THE FLY, MASTER INDICATOR says we bounce from here. Get your boing on and prepare to melt some faces off.
UPDATE: I swapped out of CRUS for CRS, only a difference of one letter.
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