I noted a few weeks back that I had opened a position in Expeditors International (EXPD), which was called to my attention by Dan Ferris in a teaser ad for his Extreme Value letter. I had a limit order in for a few more shares if the price dropped into the $34s, and that limit order was triggered recently so I have increased the size of my position.
This is just “buying more cheap” of a stock that I think is of very high quality, with excellent long term potential to grow earnings and dividends as long as global trade doesn’t completely collapse — as the world continues to be more complex and more interconnected, these are the best shepherds of that complex movement in goods around the world. With economic fears, the stock could certainly continue to lag and I don’t see an immediate catalyst for it to bounce back, this is just a good price, I think, for an excellent company that I would expect to be able to hold for decades. If I change my mind I will, of course, let you know.
Their next earnings release is not for a few weeks (November 7), and though some pessimism is baked in I think it’s safe to say that it likely won’t be a strong quarter, with shipping-related and asia-trade-related stocks floundering (they’ve missed the last three quarters, and estimates have come down slightly since last quarter’s report), so if you’re interested in the stock and trying to be nimble it’s certainly very possible that there will be other opportunities to buy at lower prices in the months to come.