Yeah, the blue axis seems to be point the right direction, but you need to adjust the red and green ones. You'll notice it is lined up correctly end to end, its just lying on its side. THat is a green/red issue.
An easy way to do it is to edit the component and rotate the geometry so it is standing up. OR you could change the component axis before using component stringer.
And component stringer is not necessarily the best script for laying out things like fences onto a line. CompStringer really excels at things that can change scale. I would recommend using Rick's path_Copy from smustard.com. You will probably get better results and more relable.
Chris