| The GM (er, Motors Liquidation) Stock Anomaly Donald Marron submits:A few months ago, I wrote a series of posts about anomalies in the pricing of Citigroup (C) common and preferred stock (see here for the final installment). At the time, Citi’s common stock traded at prices that appeared to be way too high relative to the preferred stock (which has since converted into common). Limits on short-selling appeared to be the best explanation for that anomaly.Complete Story » seekingalpha.com |
YRCW Avoids Bankruptcy, Serious Challenges Remain Ockham Research submits: Trucking services firm YRC Worldwide (YRCW) was able to complete the necessary debt for equity swap with its bondholders in a deal that came down to the wire after six extensions were required. The deal will convert debt into 37 million shares of common stock and 4.35 million of class A convertible preferred shares, allowing YRC to avoid paying $19 million in interest payments and fees. Also, this deal will permit them to tap into $160 million from its credit facility which should enable operations to continue. Of course, management is heralding this as a means to a turnaround, but they will need to find a way to slow their cash burn quickly or it could be just a band-aid for a company that has lost $17 billion over the last 5 quarters. Industry analysts such as David Ross of Stifel Nicolaus had speculated that if this agreement with bondholders the company would have been required to close its doors as early as this weekend. That cannot inspire confidence in the businesses who rely on YRCW to transport their goods, and whose merchandise would be in limbo if the company were to shutter operation. The negotiations with creditors have been made quite public over the past few weeks, with multiple extensions needed to come to agreement. Excess capacity in the transportation services sector would suggest that YRCW clients would be foolish not to at least investigate other alternatives in the event that they do need to file bankruptcy in the near future. Competitors of YRCW have reported business is improving so some may already have started to defect.Complete Story » seekingalpha.com |
Textron Signs Supply Agreement Zacks.com submits: Textron Marine & Land Systems, an operating unit of Textron Systems, a Textron Inc. (TXT) company, signed an agreement with the Federal Defense Industries Inc. Per the agreement Textron will provide Cadillac Gage vehicle spare parts. Textron Marine & Land Systems specializes in the design, production and support of advanced marine craft, armored combat vehicles, turrets and related subsystems. The company serves military and commercial customers domestically and internationally, and has products operating in more than 35 countries worldwide.Complete Story » seekingalpha.com |
Bombardier: Revenues, Earnings Slide in Q1 Bombardier (BDRAF.PK) reported on its Q1 performance today, saying both of its groups performed well despite declines in revenues and earnings, which fell from C$4.5 billion to C$4.2 billion and from C$235 million to C$224 million, respectivel. Conditions in the jet market are showing signs of stabilization with the level of business aircraft cancellations decreasing.Net income reached C$153 million, compared to C$158 million for Q1 2010. Diluted earnings per share (EPS) were C$0.08 for Q1 2011, compared to $0.09 for the equivalent period of the previous year. The overall backlog totalled C$44.4 billion, compared to C$43.8 billion as at January 31, 2010.Complete Story » seekingalpha.com |
Carnival CEO Discusses F3Q2010 Results - Earnings Call Transcript Carnival Corporation (CCL)F3Q2010 Earnings Call TranscriptSeptember 21, 2010 10:00 am ETComplete Story » seekingalpha.com |