| Buffett's Big Buyout Bets on Buoyancy Anthony Alfidi submits:Tuesday brought big news on Berkshire Hathaway's (BRK.A) proposed buyout of Burlington Northern Santa Fe (BNI) railroad at $100/share, cash and stock. This transaction is a textbook window into Warren Buffett's equity valuation model.Uncle Warren has dropped hints over the years on how he values a stock. Buffettology books (particularly those by Mary Buffett) have done an excellent job outlining his calculation of "owner earnings" (net income plus depreciation minus average capital spending), his use of the 10-year Treasury yield as a discount rate, and his preference for companies that consistently grow retained earnings per share over long periods.Complete Story » seekingalpha.com |
BorgWarner Inc. Q4 2009 Earnings Call Transcript BorgWarner Inc. (BWA)Q4 2009 Earnings Call TranscriptFebruary 11, 2010 9:30 am ETComplete Story » seekingalpha.com |
Rail Traffic Up in March: Another Sign of Economic Recovery Donald Marron submits:The Association of American Railroads publishes an excellent monthly compendium of economic data called Rail Time Indicators. I’ve been meaning to mention it for months. The latest edition reports another sign of economic recovery: March freight rail traffic recorded its first year-over-year gain in almost two years:Complete Story » seekingalpha.com |
Spartan Motors, Inc. Q2 2010 Earnings Call Transcript Spartan Motors, Inc. (SPAR)Q2 2010 Earnings Call July 23, 2010; 10:00 am ETComplete Story » seekingalpha.com |
Southwest Airlines Buys AirTran to Spread Low Airfares, Not to Boost the Industry Stone Fox Capital submits:Typically buyout news can be very bullish for the industry and competitors of the firm bought. Potentially less focused competition or even a higher premium for stand alone operators can be very positive. In the case of the airlines, that usually isn't the case. As soon as one airline leaves, another usually is born to take their place. Despite being a long term losing industry, airlines seem to never lack for new entrants.Today's news that Southwest Airlines (LUV) is willing to buyout AirTran (AAI) for a roughly 69% premium is huge for shareholders of both companies and especially AAI. This deal allows LUV to more effective compete in the NorthEast not to mention to enter markets such as Atlanta. Does that make JetBlue (JBLU) or American Airlines (AMR) an attractive acquisition now that one competitor is gone? Hmm, more and stronger competition from LUV doesn't seem ideal. The headline of their press release says it all "Southwest Airlines to Acquire AirTran; Spreading Low Fares Farther". That doesn't make me want to run out and buy JBLU or AMR! The combined companies will be much more of a force on pressuring fares down.Complete Story » seekingalpha.com |