Marten Transport: A Split in Trucking
Neil Macneale focuses exclusively on stocks that have announced splits; each month he adds one new stock to his model portfolio. Here's the latest buy from his 2 for 1 Stock Split Newsletter.
Last month I looked at split candidate Marten Transport (MRTN) and while I didn't add it to our portfolio, I felt it would deserve another look. Now, I’m convinced this small trucking company is a better fit for 2 for 1 than any of the other candidates at this time.
Marten Transport announced a 5 for 3 split in June. In my view, a 5 for 3 split is not as strong as a 2 for 1 split but it’s better than a 3 for 2 split. But what makes me think it’s good enough for the 2 for 1 portfolio when, with very, very few exceptions, I’ve adhered to the “2 for 1 only” rule?
First and foremost, a stock split announcement separates a company from the list of thousands of stocks traded on the major exchanges and puts it on the list of only a select few names that possess the “Stock Split
Because I can’t find another 5 for 3 split, I can’t offer up an example, but my instincts lead me to think this is still a strong signal from the board that they believe future prospects for the company are excellent.
Marten is in the temperature-sensitive trucking business, primarily moving perishable food products all across North America.