TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Auto Investors: Monday's Action Was a Warning Robert Salomon submits: The big story Monday was the Obama administration’s decisions regarding General Motors (GM) and Chrysler aid (see US Lays Down Terms for Bailout). I won’t spend time re-hashing the specifics; instead, I will provide commentary on the plan as it has been advanced, assuming you already know the specifics. Overall, I think this plan represents a sensible approach. It recognizes that there is substantial heterogeneity across GM and Chrysler. Their importance to the broader economy differs. GM is obviously the more systemically important firm of the two. Moreover, the two are not on equal footing with respect to future prospects. GM’s product portfolio moving forward is far superior. For these reasons, I have been an advocate of treating GM and Chrysler differently (see Pre-Packaged Bankruptcy, Preventing Moral Hazard, and Aid for Chrysler? Just say No! for details).Complete Story » seekingalpha.com |
Bet on GM Bonds Expiring on June 1 Gerry Sullivan submits: Everyone assumes that [[GM]] is going to file for Chapter 11 bankruptcy on June 1. The company has even stated that it will file if 90% of the bondholders don't agree to the exchange offer of 225 shares of GM common stock for each $1000 of par value of bonds. That 90% exchange is very unlikely.That leaves the question will GM really file? The bonds that mature on June 1 have $1 billion outstanding. There isn't another maturity until Jan 2011. If GM pays off these bonds, the company can avoid bankruptcy for 18 months.Complete Story » seekingalpha.com |
Baltic Dry Index Stuck in a Holding Pattern Hickey and Walters (Bespoke) submit: After an impressive rise (547%) off the lows of devastating decline (-94%), the Baltic Dry Index is currently stuck in a narrow range making lower highs and higher lows. With investors searching high and low for signs that the global economy is coming back to life, you can bet you'll be hearing about it if it breaks out to the upside.click to enlargeComplete Story » seekingalpha.com |
EV Market: Ener1 Inc. Reaches Deal for 30% of THINK James Rickman submits:Ener1, Inc. (HEV), the parent company of EnerDel, is among a group of investors pumping a total of $47 million dollars of equity funding into Norwegian EV manufacturer THINK GLOBAL AS. EnerDel is a leading manufacturer of lithium ion automotive battery systems. The terms of the agreement calls for about $18 million in three tranches with an additional $3 million in debt for convertible preferred shares of THINK. Once the deal transfers are completed Ener1, Inc. will own about 30% of THINK GLOBAL AS. Additionally, the Norwegian investment company, Investinor will own a percentage investing $5 million.Complete Story » seekingalpha.com |
AutoNation: Riding Out Lower Volume Zacks.com submits: AutoNation (AN) has revealed a 44% rise in profits to $65 million or 36 cents per share in the third quarter from $44 million or 25 cents per share in the year-ago quarter. (See earnings call transcript.) With this, the largest automotive retailer in the U.S. has inched past the Zacks Consensus Estimate of 35 cents per share. Despite lower new vehicle industry volume, the retailer benefited (especially in the Domestic and Import segments) primarily from “Cash for Clunkers” cash incentive vehicle-exchange program. The program, launched by the U.S. Government in late July and open for a month, succeeded in attracting a large number of consumers to the retailer’s showrooms. It aided the retailer’s results for the latest quarter by 7 cents per share.Complete Story » seekingalpha.com |