Matson: Take The Money And Run

Summary

• Like most other shipping and logistics companies, Matson has had a spectacular year. Revenue is up 61%, and net income has nearly quadrupled.
• The stock is very expensive on a host of metrics, though, at a time when the analyst community foresees a slowdown in the business. The great results were an aberration.
• Normally I like to recommend selling puts in lieu of buying stock, but the current price is so out of whack, premia for reasonable strikes are non-existent.

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Those who’ve been unfortunate enough to see me “dance” know that my timing is, let’s just say, not perfect. My poor timing doesn’t only relate to when I lurch around cutting rugs, but in the domain of investing also. No better example

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.