On the watch list...

Sebastian Evans, CIO, NAOS Asset Management says Lindsay Corporation looks good ahead of reporting season. "With reporting season just around the corner we believe Lindsay Corporation, which is a refrigerated logistics operator in Queensland, is an ideal candidate to report a strong underlying result on a number of fronts. With continued demand for quality fresh fruit and vegetable products out of the emerging food bowls of Northern Queensland we expect strong volume/revenue growth for Lindsay. If this can be translated into better efficiencies across the fleet of Lindsay trucks there should also be an improvement in earnings margins. Lindsay deals direct with a number of farmers and have low revenue exposure to both Woolworths and Coles. Given fresh food delivery is often time and temperature sensitive, Lindsay’s scale and experience in freight allows them to achieve stronger and more stable margins than many of their peer logistics operators."