| Lockheed Martin's Pension Plan Is a Financial WMD Anthony Alfidi submits:The Global War on Terror was once based on the premise that enemies of the United States possessed weapons of mass destruction (WMDs). Defense contractors like Lockheed Martin (LMT) have raked in tremendous profits since the war began even though no WMDs have been found. Well, I’ve found one on Lockheed Martin’s balance sheet. LMT’s qualified defined benefit pension plan has been severely underfunded since its market value dramatically declined in 2008. Accounting for this on LMT’s balance sheet necessitated a severe writedown of shareholder equity that year. The plan’s portfolio composition is not clear, but if the plan’s managers used trendy concepts like the “Swensen Yale Model” that so enraptured other money managers of late then its assets may be in deep kimchi in coming years. In their 10-Q for Q2 2009, LMT states that they have made their full pension plan contributions for the year: In 2008, we made discretionary prepayments totaling $109 million related to our qualified defined benefit pension plans and $120 million related to our retiree medical and life insurance plans. These prepayments reduce our cash funding requirements for 2009. There were no contributions in the first six months of 2009. Based on our known requirements as of June 28, 2009, we do not expect there to be any required cash contributions related to the qualified defined benefit pension plans or the medical and life insurance plans for the remainder of 2009 due to the prepayments made in prior years. We may review options for further discretionary contributions in 2009. Complete Story » seekingalpha.com |
Examining the Holdings of Powershares Global Progressive Transport Portfolio ETF Tom Konrad (AltEnergyStocks) submits: I included the Powershares Global Progressive Transport Portfolio (PTRP) as an investment option instead of three stocks in my Ten Clean Energy Stocks for 2010, as part of a simplified portfolio for small investors wanting to minimize costs by making fewer trades. The other Exchange Traded Fund I used in this way was the First Trust Nasdaq Clean Edge Smart Grid Infrastructure Index Fund (GRID). I took a look at the holdings of the Smart Grid ETF here, and they are not exactly what you would expect from the name. Since it makes sense to know what you're buying, I decided to do the same for PTRP. The left side of the chart below shows my classification of the companies held by PTRP (as of the end of 2009). Some companies fell into multiple categories, so I divided their industry allocation accordingly. The right side shows a similar treatment for the three stocks I suggested substituting PTRP for in my "10 for '10" portfolio (New Flyer (NFYIF.PK-bus), Portec Rail Products (PTRP-rail), and First Group PLC (FGP.L - Bus & Rail))Complete Story » seekingalpha.com |
Alaska Air Group Inc. Q1 2010 Earnings Call Transcript Alaska Air Group Inc. (ALK)Q1 2010 Earnings Call April 22, 2010 11:30 am ETComplete Story » seekingalpha.com |
Can Tesla Motors Deliver Electrifying Growth? Renaissance Capital IPO Research submits: Tesla Motors' (TSLA) mission is to accelerate the world's transition to energy-efficient electric vehicles with its high-performance powertrain technology and superior product design. Backed by PayPal co-founder Elon Musk and a host of big-name investors, Tesla was the first company to commercially produce a highway-capable, fully-electric vehicle (EV) and has sold more than 1,000 of its high-priced, high-performance Tesla Roadsters to customers in 22 countries. With access to $465 million in low-interest loans from the US Dept. of Energy, Tesla recently acquired a production facility on the cheap and seeks to leverage its proprietary electric powertrain technology to produce a line of mainstream EVs, starting with the launch of its Model S luxury sedan in 2012. After increasing its proposed deal size by 20% on Monday, the company plans to sell 13.3 million shares at a proposed range of $14-$16. Goldman, Sachs & Co., Morgan Stanley, J.P. Morgan and Deutsche Bank are the lead underwriters on the deal, which is one of five US deals on the IPO calendar for the week of June 28. Proof of conceptComplete Story » seekingalpha.com |
Coastal Distribution System: Capturing Positive Industry Trends Adam Sues submits:The recreational vehicle (R/V) market was absolutely crushed during the recession of 2008 and 2009, as customers put off major discretionary items. Coastal Distribution System (CRV), a part maker and distributor of over 12,000 RV and boating parts, supplies and accessories, was hit especially hard, with sales dropping more than 40% between 2006-2009. Despite the company’s struggles, the industry appears to have hit rock bottom and the future outlook has started to show signs of improvement.Complete Story » seekingalpha.com |