| Behind Buffett's Rail Bet The scales are tipping away from America's highways. Here's why. forbes.com |
A Tale of Two Shippers Jim Delaney submits: In 1859 Charles Dickens wrote “A Tale of Two Cities” and for those non English Lit majors among us, including yours truly, it was set in London and Paris before and during the French Revolution. Today we are looking not at two cities but two shippers, FedEx Corp. (FDX) and United Parcel Service (UPS).Complete Story » seekingalpha.com |
Airline Stocks and ETF Continue to Fly High: Will It Stick? Tom Lydon submits: Airline stocks and their related ETF recently touched 52-week highs, having been swept up with the broader market rally. But does the airline industry have the fundamentals to continue earning for investors?According to Glenn Curtis of Investopedia, there are some concerns looking into the future of the airline industry. Higher fuel prices will pinch margins and lead to increased ticket prices while continued high unemployment, rising interest rates and higher taxes will all reduce the amount of discretionary income.Complete Story » seekingalpha.com |
General Dynamics Wins Army Contract Zacks.com submits: General Dynamics Corporation (GD) announced that one of its operating units General Dynamics Land Systems has won an army contact worth $10.9 million. The company will supply parts of armored vehicles to the army.General Dynamics Land Systems will supply 256 units of Abrams reactive armor tile, 743 of Abrams reactive armor tile weldments, 300 Abrams reactive armor tile brush guards and 300 Abrams reactive armor tile brackets to the army as per the contract. The staff of General Dynamic’s Lima, Ohio plant will manufacture the supply parts. General Dynamics expects to complete the work by December 31, 2011. General Dynamics continues to win contract from the army, the most recent ones being the $92 million contract to build weapon stations and the $1.2 billion contract for modernization of U.S. air traffic control systems. Based in Falls Church, Virginia, General Dynamics is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. The company operates through four business segments − Information Systems & Technology, Combat Systems, Marine Systems, and Aerospace. The major competitors of the company are Boeing Co. (BA), Lockheed Martin Corporation (LMT) and Textron Inc. (TXT). During the first-quarter earnings call, General Dynamics provided segment-wide guidance for 2010. Information Systems & Technology is expected to grow 8% to 9% and Marine Systems to grow 7% to 9% over 2009 levels. Combat Systems is expected to increase 4% to 5% over 2009 levels with the majority of improvement anticipated in the second half of 2010. Aerospace revenue is expected to increase in the low- to mid-single-digit percent over 2009 levels, and the company expects to deliver the same number of Gulfstream aircraft, with a further shift toward large-cabin models. The Zacks Consensus earnings estimate for the second-quarter 2010 is $1.61 per share and for 2010 is $6.58 per share. We presently retain our Neutral outlook on General Dynamics as future prospects of the company largely depend upon the U.S. defense budget. Adding to its woes is a bleak scenario for mid-sized cabin jets and risks related to execution of key projects.Complete Story » seekingalpha.com |
Why Detroit's Cars Are Outshining Japan's Rick Newman submits:It's cute. Fun. Green, even. Honda's (HMC) new CR-Z is the first hybrid sports car to hit America, with frisky handling, modish looks, and mileage in the mid-30s. In a market cluttered with me-too imitators, it's a genuine original. But get out your camera if you spot one: They're likely to be scarce on American roads. Even though it's derived from Honda's popular Fit subcompact, the CR-Z is an innovation without much of a market. Since it's a two-seater, the CR-Z will only appeal to singletons or families with at least one other car. It has less power than competing sports cars and gets lower mileage than other hybrids, prompting some critics to wonder, what's the point? The CR-Z is not a bad car. But there's something missing here — it lacks a certain Honda joy." For Honda, such faint praise is a damning indictment.Complete Story » seekingalpha.com |