| What Inventories Say About Imports New data suggests companies are retrenching from a 10-year binge of chasing low-cost manufacturing around the world. forbes.com |
Delta Airlines: Bears Position for Pullback optionMONSTER submits: By David RussellDelta Air Lines (DAL) has been screaming higher since Thanksgiving, and now one trader is positioning for it to come in for landing.Complete Story » seekingalpha.com |
Optimistic on GOL Linhas Zacks.com submits: GOL Linhas Aereas Inteligentes S.A. (GOL) has announced the total passenger traffic for March 2010 in comparison with March 2009.During the month, total passenger traffic increased 36.8% year over year, with domestic traffic up 38.5% and international traffic up 23.6%. During February 2010, total passenger traffic grew 46.9% over the same period last year, fueled by a 47.9% growth in the domestic market and a 40.3% growth in the international market. In January, GOL's total passenger traffic grew 32.1% over the same period last year. Domestic passenger traffic increased 31.4% compared with January 2009 and international passenger traffic increased 36.9% year over year. All three months of the first quarter of 2010 saw passenger traffic increase due to the company’s better positioning in its markets and increased demand driven by the recovery of the Brazilian economy. The increase in international demand was also due to adjustments in the company’s international network, which now includes new routes from Brazil to the Caribbean with flights to Aruba and Curacao, and the repositioning of sales channels, including the opening and renovation of airport stores abroad in order to adjust them to GOL's business model and the client profile of the location in question. GOL remains better positioned to capitalize on the increase of discounted air travel in Brazil and the rest of Latin America, given its strong market share and efficient operations. We expect the company to experience growth in the short-to-medium term given its continued investment in fleet renovation and international agreements. Moreover, other Latin American and Chinese airline stocks have performed well in 2009. We believe that 2010 may be another profitable year for the airlines industry in the emerging markets, provided the overall economy continues to grow. Besides, the economic growth in emerging markets will be higher than in the developed markets.Complete Story » seekingalpha.com |
The Return of Rail Volume Morningstar submits: By Keith Schoonmaker Demand for railroad service is rebounding from its astounding 2009 plummet at a record clip. The Association of American Railroads this week reported that May's 15.8% year-over-year monthly carload growth was the second-greatest monthly gain in United States demand since the AAR began tracking volume in 1990, and the all-time greatest monthly carload increase was in April--just the prior month. Intermodal units originated during May 2010 improved 18.9%--the largest year-over-year monthly gain in trailer and container volume on record. Carload and intermodal volume both display some seasonality. As was the case in 2007, 2008, and 2009, there were fewer carloads hauled in May than in April. Intermodal volume normally displays a downward tick after June and October (but none following April). The AAR's May 2010 values exclude a late Memorial Day, which makes for a slightly favorable comparison to May in 2008 and 2009, when this non-workday fell in May. Examining the first 20 weeks of 2010 (just a week less) gives us the latest data without holiday complications.Complete Story » seekingalpha.com |
You Know It’s a Real Rally When Shippers Take Part Wall Street Cheat Sheet submits: By Elliot TurnerIn the past year, there were few worse places for investors to hide than in a company with both exposure to global shipping and a domicile in Greece. Yesterday, shares of DryShips (DRYS) ignored those two realities and surged $0.34 or 8.23% following a Morgan Stanley upgrade. In early 2007, as the emerging market growth story gained steam and the global economy seemingly soared, this sector was one of the most popular with investors. In each of its attempts to rally post-2008 meltdown, DryShips has been subsequently beaten down to new lows. Whether this sector can sustain its latest upside push will be a great indicator to investors as to the vitality of global trade markets.Complete Story » seekingalpha.com |