| Energy Watch: Solve for California Gregor Macdonald submits: The next BLS release of unemployment data for California comes this Friday, and its bracing to think what the numbers might be. Currently, the broad measure of unemployment for California–or U6–is running at 19.9% and the more conservative measure, which will be updated this this week, is at 12.2%. I’ve written quite alot on the subject of California this year. So, I watch the macroeconomic newsflow that emerges from the state each week, and most of it is pretty awful. This Summer I spent a little time on television making the case to both MSNBC and BNN in Toronto that California was extremely overleveraged to the automobile, and should probably think seriously about building out it’s rail system. At that time the machinations over California’s budget were in full swing, and a number of observers thought the budget agreement would put the state on the right path for at least another year. I was doubtful, and said so at the time. Moreover, I tried to draw the two points together: California was now suffering diminishing returns from its vast automobile and highway system, and it was unlikely to crawl forward again as an economy unless petrol became very cheap again (unlikely), or got serious about transition.Complete Story » seekingalpha.com |
Goodrich Corporation Q4 2009 Earnings Call Transcript Goodrich Corporation (GR)Q2 2009 Earnings CallJanuary 28, 2010; 10:00 a.m. ETComplete Story » seekingalpha.com |
Marinemax, Inc. F2Q10 (Qtr End 03/31/10) Earnings Call Transcript Marinemax, Inc. (HZO)F2Q10 (Qtr End 03/31/10) Earnings Call TranscriptApril 28, 2010 10:00 am ETComplete Story » seekingalpha.com |
CSX Corp. Q2 2010 Earnings Conference Call CSX Corp. (CSX)Q2 2010 Earnings CallJuly 13, 2010 08:30 am ET Complete Story » seekingalpha.com |
Railroad Stocks: Determining Fair Value Ever since Warren Buffett acquired Burlington Northern Santa Fe (BNI), I have been keenly following the railroad sector in hopes of finding a quality company that could be a part of my long term portfolio. Railroads should be an attractive investment to most investors since the industry has high barriers to entry. This is slightly offset by the unionized nature of the business and competition from other modes of transportation (primarily the trucking industry). The U.S. railroad sector is dominated by four (4) companies namely Union Pacific (UP), Burlington Northern Santa Fe (BNI), CSX Corp (CSX) and Norfolk Southern Corp (NSC), while the Canadian market is controlled by Canadian National Railway (CNI) and Canadian Pacific Railway (CP). Rail rates are generally cheaper than trucking rates and this difference in rates is expected to magnify with rising oil prices. According to the Association of American Railroads, adjusted for inflation, the average rail rates have in fact fallen 55% between 1981 and 2009. However, regulatory pressure might reduce this competitive advantage since government regulators have the authority to impose maximum allowable rail rates if a railroad has market dominance. Complete Story » seekingalpha.com |