Sell Old Dominion (NSDQ: ODFL), SAIA (NSDQ: SAIA) and Werner (NSDQ: WERN)

Sell all three trucking stocks. I recommended Old Dominions (NSDQ: ODFL), SAIA (NSDQ: SAIA) and Werner (NSDQ: WERN) at the start of the year.

They are down between 10-20% since the recommendation. I missed the chance to sell each of these at much higher prices in September. All three have broken support levels, making a significant rally tough.

While I believe the fundamentals are strong on these stocks, a belief reinforced by Werner’s earnings report last week, where it beat estimates and gave solid guidance, when I get the news I want but the stock behaves differently, it’s time to find another group.

The issue, I believe, is investors’ fear that the economy is running out of steam. Truckers are stocks that typically do well only in the early part of an economic recovery. I do think there are secular issues that will boost truckers’ earnings more than expected but the psychology on the stocks is limiting any gains. Each boost is slammed with sellers. I think we can find better stocks that will give us fewer headaches.

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