MYFT – Emerging as a New Potential Big Gainer
Nebula & Light Speed Stocks Newsletter
MYFT Fast-growing transportation technology company, MYFT, makes major inroads in $700 BILLION industry20,000 users already on board.
My Freight World`s (MYFT) aggressive roll-up strategy could multiply your money many times overat just $0.05 a share.
Profit-Minded Investor, My Freight World (MYFT) is just beginning its run as a breakout stock making this the perfect time to buy shares.
MYFT provides proprietary web-based technology and management services to transportation logistics companies that streamline every step of the shipping and logistics process. Why is this a hot ticket Because the economy drove a stake through the heart of the transportation industry during the recession.
Throughout the transportation industry there was a 40% average drop in top line revenues in 2009and the small players were hit particularly hard. But the industry is starting to come back. MYFT saw evidence of this in the 54% increase in shipping volume from Q1 2009 to Q1 2010.
As the industry rebounds, more and more transportation logistics companies are actively looking at ways to cut costs and save money. What`s the best way to do that Through increased use of information technology and consolidation of services.
That`s exactly what MYFT`s proprietary web-based technology will do for these companiesand it will save them money.
MYFT`s proprietary web-based technology allows these companies to manage all of their transportation logistics functions that include:
Booking transportation services across varying transportation modes Motor carrier execution Resolution of problems that occur during transit Access to freight bill auditing and payment services Invoicing and payment collection Real time management information and reporting.
Not to mention, unlike their $12.80 a share competitor, all of the software is fully customizable and can be private labeled. MYFT`s software actually allows all information to be transferred to all interested parties through the entire shipping lifecycle, too.
20,000 end users already using MYFT`s technology This is the kind of technology that saves companies truckloads of money. It dramatically cuts and even eliminates overhead costs and streamlines operationsthat`s critical to companies of all sizes in these market conditions.
MYFT`s proprietary technology is already starting to take off. At last count, there were more than 20,000 users of the company`s My Freight World system through private labeling. And that`s just the beginning.
Competitive Comparison:
MYFT is highly undervalued A $700 billion industry is opening the door for MYFT to buy up companies While transportation is the second largest industry in the US, accounting for 10% of the total GNP, this $700 billion industry is highly fragmented, making it ripe for consolidation.
My Freight World (MYFT) has begun to take advantage of the current economic and market climates by acquiring small to medium-sized Third Party Logistics Providers to broaden their customer base. Remember, these companies were hit especially hard by tough economic times so they are ready to deal.
To date, MYFT has acquired Cheap Online Shipping (COS) which added a valuable alliance partner with Freight Management Inc.
What`s more, the company has a joint venture agreement with All Modes Transportation in Kansas City to merge its retail division. All Mode has a projected revenue of $10 million for the coming year. That is projected to have a positive impact on MYFT shareholder value.
According to Price WaterhouseCoopers, LLP, mergers and acquisitions are showing signs of recovery in the global transportation market and logistics sector with increased deal activity in Q1 2010.
Tapping a fast moving, fast growing market MYFT already has more than 100 clients in an area that means big business:
Third Party Logistics (3PLs). They use MYFT technology and services for all or part of their supply chain management functions.
These 3PLs are “one-stop shops” for outsourced transportation logistics, specializing in managing the interface between shippers and carriers. They perform multiple logistical services that are, best case, bundled together services such as transportation, warehousing, cross docking, inventory management, packaging or freight forwarding.
Virtually 100% of all rail intermodal freight is now managed by 3PLs.
These 3PLs cover the broad spectrum of transportation logistics so it`s easy to see why using web-based technology like MYFT has such dynamic appeal.
MYFT offers 3PLs a private-branded software that supports thousands of end users, including some of the most respected blue-chip companies that manage billions in freight revenue.
Industry roll-ups structured after successful NYSE-listed company To execute a roll-up strategy correctly you want to ensure that you have a successful model.
MYFT`s management is employing a model used by National Financial Partners Corp.
(NYSE: NFP).
NFP successfully acquired 150 companies in the insurance industry. The stock is currently trading in the $12.40 range with a market cap around $498 million. NFP has demonstrated their roll-up model works. Now MYFT is going to use the same model for success.
Third Party Logistics sector is on fire 3PLs are growing much faster than the rest of the transportation industry and the economy. This segment manages most of the $700 billion industry, yet no one single company owns more than a 2% marketshare.
In 2008, 3PLs generated $127 billion in business but saw a 16% decline in 2009 during harsh economic times. In 2010, so far this sector has seen double digit growth.
One of the fastest growing segments within 3PL is the “on-demand” transportation sectorbrokerage services, adhoc and “flyer” type services essential in today`s business climate.
On-demand transportation is not cheap but it is highly profitable for 3PLs.
Certain modes of transport are more likely to use 3PL, including Full Truck Load, Next Flight Out, Hotshot (direct, exclusive carrier) and International expedited.
This is projected to have a very positive impact on company revenue…
Revenues projected to soar from $40 million to $400 million Currently, the company has managed revenues of $40-$50 million. As MYFT continues with its acquisitions, revenue is projected to soar to $400 million, based on the completion of 8-12 acquisitions.
More recently, MYFT reported that managed revenues for Q1 of 2010 increased by over 40 percent from Q1 2009. I don`t know of many companies reporting more than 40 percent revenue increase these days.
More revenue in second tier transportation intermediaries Transportation intermediaries, which include 3PLs, are a significant market. Industry experts report there are up to 6,000 transportation intermediaries in the US and another 5,000 in the brokerage departments of asset-based carriers. That`s as many as 11,000 potential customers.
Today, few businesses can afford to maintain the professional expertise in-house required for full management of transportation logistics. Matching shippers and carriers on a cost-efficient basis is fueling a growing trend to outsource. Enter My Freight World (MYFT).
Small to medium-sized transportation intermediaries in the $2-$100 million range are a prime target for MYFT acquisitions. Remember, with the harsh economic times, MYFT is in a better position to make offers that`ll be accepted.
Factbox: Obama proposes $50 billion Manufacturing numbers up = shipping numbers up In the first half of 2010, the US manufacturing sector showed signs of recovery following more than two years of unemployment losses. A total of 136,000 jobs were added in a six-month period since 2009that six month growth is the longest stretch since 1997.
for road, rail, airways updated 9/7/2010 10:34:32 PM ET Washington is ready to sink $50 BILLION into transportation Washington may just be doing MYFT a favor.
At a recent Labor Day gathering, Obama proposed a $50 billion bill that would rebuild 150,000 miles of roads, construct 4,000 miles of rail track and reconstruct airport runways for next generation air traffic control.
According to the New York Times, if Congress simply reauthorized the expired transportation bill and accounted for inflation, the new measure would cost about $350 billion over the next six years.
While Washington is using it as a push for new jobs, a revived transportation system would open up opportunities for shippers and manufacturers to ship their goods faster and more economicallyand that comes down to more business for MYFT.
After all, the transportation logistics companies have to have the technology and support services to competebut they may not have the financial resources to put the proper personnel in place. MYFT offers them a smart solution.
More people to work means more goods get manufactured and shipped.
Employment appeared to be strongest in durable goods and in particular, in transportation equipment, machinery, primary metals and fabricated metal productsall goods that need major modes of transportation.
Added to that was news that the Commerce Department reported wholesale inventories and sales increased sharply in July, well ahead of expectations.
Economic recovery is getting brighter. It`s slow and tepid but it`s happening.
As economic recovery continues, the transportation industry is going to get busier and busierand transportation intermediaries and 3PLs are actively going to look for ways to manage the shipping process faster, easier and more cost effectively.
An investment in MYFT right nowas the industry is beginning to rev up againcould deliver incredible short-term and longer term gains, depending on your investment goals.
At a share price of just $0.05 you could afford to buy shares in mass quantities. Should MYFT double to $0.10 you could double your money.
MYFT`s secret weapon:
A president and CEO that took a company from zero to $700 million Running the show at MYFT is a seasoned transportation executive by the name of Michael Head. Michael is the former CFO and CEO of Mark VII, Inc., a nationwide third party logistics company he founded in the 1980s.
Michael grew the company from zero to $750 million in revenue before he sold it a decade later. Prior to his run with Mark VII, he co-founded MNX, Inc., a nationwide truckload carrier which was sold to Swift Motor Carriers, one of North America`s largest truckload operations.
Michael has extensive experience in the transportation industry building successful companies and shareholders have every reason to believe he and his management team will be even more successful with My Freight World (MYFT).
To learn more about the management team visit the company website:
www.myfreightworld.com Investor Highlights:
Best Reasons to Buy MYFT Highly Undervalued MYFT is highly undervalued at $0.05 a share. The company`s share price is projected to rise dramatically as the company grows. Remember: MYFT`s closest competitor is trading close to $13 a share.
Talk to your advisor today about including MYFT in the portion of your penny stock portfolio. MYFT could easily double, triple even quadruple your investment.
Any investor who has ever struck the gold mine in penny stocks knows they are the money machines of the investment worldand I believe MYFT could be the next penny stock winner.
It`s trading at just $0.05 and could return multiple times your investment.
MYFT is presenting investors with a market opportunity too good to pass up.
Discuss an investment in MYFT with your broker or advisor today.
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