Show BUSINESS r t STOCK ll MARKET r Si Sf SPECIALIZED TRUCKING O COMPANIES Cn Common stocks of the leadin leading trucking companies outperformed outperformed formed the market from Crom the early carly days of oC the oil embargo until quite recently Then because of the increasing cloudiness in the outlook trucking issues began to come under tinder greater selling pressure While it is likely that this weakness will persist for a time the term longer-term prospects are considerably more encouraging en en- First The Adverse Factors actors A number of negatives will temporarily limit revenue and profit gains gain within the trucking industry There will be the economic softening affecting most of the business fabric the runaway inflation high costs of borrowed capital heavier outlays for labor and equipment and the difficulties in securing rate relief Despite these depressive conditions however the possibilities for rebound in trucking equities are good The unfavorable features seem to have been well discounted at today's common stock prices and the likelihood of further scale large-scale price erosion is slim So the basic term longer-term appeal of issues in inthis inthis inthis this line remains quite strong Auto Market 1 Connection While the trucking industry is of broad scope the Research Department of Babson's Reports has analyzed for this report a special breed of haulers namely those that carry new automobiles such as Ryder Hyder System Woods Corp and National City Lines The business cycles of these concerns concerns concerns con con- cerns are affected by the output of the new motor vehicles as opposed to other economic yardsticks Since most hauling auto-hauling companies have various operations both major and minor it is essential to measure the amount of business in this particular category For companies concentrating in auto hauling net and per share earnings can be dominated by bythe the auto production pattern Drop In Auto Sales Thus far in 1974 1 automotive sales and output have been off dramatically seriously discommoding the auto tran transporters porters Viewing the future auto makers estimate that a five percent year to gain in unit volume for 1975 is possible Even this modest increase may seem sem suspect because of our lagging economy but there are some pluses in the outlook Shortages for forr instance are drying up in several major related auto-related commodities Then too the easing of money rates and the improvement in used car prices are favorable factors And we expect a pickup in auto production as 1975 unwinds which should be soon tran translated into more business for the auto tran transporters porters Weighing The Competition Many lany new autos auto are an of course transported by railroad because of the widespread geographical locations of the manufacturers In recent years specially designed railroad cars have been ed for some auto carriers to help solve problems of theft and damage With the soaring price of gas and the economies of longer- longer haul railway transport the question arises whether the railroads will sharply increase their share of oC auto tran transportation The possibility is there especially to prevent I the he inroads of vandalism and pilferage but we see no radical change in the current distribution method at the end of the railroad line trucks will continue to come into play pla to take autos to their Imal des destination lina t IOn Taking a careful look hock at these specialized motor motol earners carriers Babson's Reports Reports' researchers hers currently recommend purchase of one company namely Ryder Hyder System The substantially depressed sed common stock of this corporation is listed on the New NewYork NewYork York Stock Exchange and appears favorably positioned for capital a appreciation lilt 1011 as business moves move to toward ird t I recovery For a free detailed report on Ryder Hyder System write to Babson's Reports Inc Wellesley Rills Hills Mass |