TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Clunkers and Housing: A Government Subsidized Facade Michael Panzner submits: Although it was obvious from the start that the cash-for-clunkers program would not live up to the promises of proponents, hard evidence is beginning to trickle in that the pessimists were right. Instead of priming the pump for a self-sustaining recovery in the beleaguered auto sector (or the economy at large), the initiative simply borrowed sales from the future. Now that the government is no longer throwing free money at buyers, Automotive News reports in "September Sales Rate Will Tie Lowest on Record, Edmunds Says," the bottom has fallen out: Edmunds’ SAAR of 8.8 million would be lowest in nearly 28 yearsComplete Story » seekingalpha.com |
AutoZone Reports Beat Q1 Zacks.com submits: AutoZone, Inc. (AZO) posted a 9.1% rise in profit for the first quarter of its fiscal 2010 ended Nov. 21, 2009, driven by expanded parts coverage as well as an improved commercial sales force and hub operating model. The Memphis, Tennessee-based specialty retailer and distributor of automotive replacement parts and accessories showed an earnings per share (EPS) of $2.82, beating the Zacks Consensus Estimate of $2.66. The EPS also improved from the year-ago level of $2.23.Net sales increased 7.5% to $1.6 billion, while domestic same-store sales (sales for stores open for at least one year) rose 5.6% during the quarter. Gross profit as a percentage of sales went up to 50.3% from 50.1% in the year ago quarter. Gross margin increased by 20 basis points due to the leverage of distribution costs from lower fuel charges as well as improved efficiencies.Complete Story » seekingalpha.com |
Gas Prices Are Up: Why Is Small-Car and Hybrid Interest Down? TheCarConnection.com submits: A continued rise in fuel prices means that people migrate to smaller vehicles and those that get higher fuel economy. Right?Complete Story » seekingalpha.com |
Berkshire's Burlington Northern: Will Plans for Accelerating Capex Go Forward? Ravi Nagarajan submits:Over the past several months, many Berkshire Hathaway (BRK.A) shareholders have been thinking about the company’s strategy for Burlington Northern Santa Fe which was acquired on February 12. Is it a “crazy deal” as Columbia University Professor Bruce Greenwald has claimed? Or is it a “heck of an investment” as Fairholme Fund’s Bruce Berkowitz claims? The answer ultimately comes down to deployment of free cash flow. In January, we suggested that Warren Buffett’s investment rationale for Burlington Northern must include some level of expansion capex in order to justify the price paid for the company. In that article, we provided an exhibit that shows that cumulative free cash flow for the five years ending December 31, 2009 was approximately $6.6 billion. A significant portion of operating cash flow was dedicated toward capex, and 80 percent of that capex was identified by management as “maintenance” capex. Of the $6.6 billion in free cash flow (after capital expenditures), over $5.9 billion was returned to shareholders either in the form of dividends or share repurchases. The exhibits from the January article are repeated below.Complete Story » seekingalpha.com |
Ambassadors Group, Inc Q2 2010 Earnings Call Transcript Ambassadors Group, Inc (EPAX)Q2 2010 Earnings CallJuly 22, 2010 12:00 am ETComplete Story » seekingalpha.com |