Thanks
Piyush
We like AND and have it as one of our coverage companies. It has had some weakness over the last couple of years as fears of a 'freight recession' took place. Recently, transportation names have shown strength as earnings have begun to roll out and deliver 'better-than-expected' growth.
AND specifically, is involved in providing third-party logistics and specialized transportation solutions for the healthcare sector. While next year's earnings and sales estimates are fairly weak for AND, future years are expected to be strong. Sales have been declining, but cash flows are strong and it has a buyback policy in place (repurchased 7% of shares over the last 12 months). It's a fundamentally sound company, with good margins, and it operates in a niche segment of the transportation industry. We believe it will benefit from the long-term secular growth trends in the healthcare transportation market and growth in its US business. Overall, we think it looks fairly attractive here if the transportation industry picks up, but we would like to see the name grow its sales again.