TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Why I Take No Issue with the Government Firing GM's Wagoner Chad Brand submits: Call me skeptical that since the Obama administration’s auto task force ousted General Motors (GM) CEO Rick Wagoner it means the government is going to take over and ruin the auto industry. I think Wagoner’s list of accomplishments (or lack thereof) shows that he deserved to be gone long ago. After all, GM stock went from $60 to $2 under his tenure as CEO. As for whether the government should have the right to force him out, why shouldn’t they have the same power that any other creditor or investor would have when trying to help a company avoid bankruptcy? Private equity invests in distressed companies all the time and as a condition of such investments always has a say in the turnaround plan, including replacing a chief executive. Having such power is the only way they feel comfortable that adequate changes will be made to somewhat protect their investment.Complete Story » seekingalpha.com |
What's Good for GM Is Good for… China? Joseph L. Shaefer submits: Most everyone has heard the almost-accurate quote from then-[[GM]] president Charles E. Wilson, “What's good for General Motors is good for the country.” Words close enough to these were spoken on the occasion of Wilson’s nomination hearing on Jan. 15, 1953 to be America’s 5th Secretary of Defense, from 1953-1957. The man would be rolling over in his grave today if he heard that GM, which supplied a vast portion of America’s tanks, trucks, armaments and aircraft in WWII (and, via its Opel subsidiary, much of the Nazi war machine, as well), now sees its best growth prospects in China. He’d be astonished to hear that Detroit, which FDR referred to as “The Arsenal of Democracy,” is today in almost as good a shape as a 20-year-old Yugo.Complete Story » seekingalpha.com |
Canadian National Railway Company Q2 2009 Earnings Call Transcript Canadian National Railway Company (CNI)Q2 2009 Earnings CallJuly 20, 2009 4:30 pm ETComplete Story » seekingalpha.com |
Shipping Market, Afloat on Credit, Remains Volatile Sudden Debt submits: A curious thing happened on the way to the market. While global share prices lift and float, nicely above the lows registered last March, something else entirely is happening at sea. First, global share prices. The MSCI World Index (ACWI) of developed countries' stock markets is up a torrid 63% from the low reached some seven months ago, when even perma-bulls had turned into a bunch of chicken-littles. Since the sky did not, in fact, fall (quite predictably after the gushers of liquidity unleashed by central banks), prices rebounded. Shares have now regained three-quarters of the ground lost in the vertical plunge of September 2008 - March 2009. Data: MSCI Barra MSCI World Share IndexComplete Story » seekingalpha.com |
Why I Sold Freightcar America Alex Bossert submits:I recently sold Freightcar America (RAIL) for $35.51 per share. FCA was a mistake that I held onto because I felt that it became really cheap over the past year. One thing that I noticed in the most recent annual report is that FCA’s market share declined from 81% a few years ago to 70% last year. A few other rail car manufacturers are starting to get into the market. One big risk is when the coal railcar industry does well, it's easy for the major players to enter the market and take market share away from FCA.One of my reasons for investing was that FCA benefited from the growing shipments of coal in the United States and shipments internationally. We have more energy units in coal reserves than Saudi Arabia has in oil. Coal is also the cheapest source of power. Even with the harmful environmental consequences of current coal fired power plants, many countries have already developed clean coal technology. However, FCA is not a good way to play the future prospects of coal. The best way would be to buy the major rail operators such as Union Pacific (UNP) or Burlington Northern (BNI) (now being acquired by Berkshire Hathaway (BRK.A)). Railroads are 4 times as efficient as trucks and it's nearly impossible to lay down more tracks. So there is no threat of competition. Railroads are a royalty on consumption and energy use. Railroads are a much better way to play coal then FCA.Complete Story » seekingalpha.com |