| Transport Sector Confirms Economic Weakness Nothing has been more confounding during this equity rally than the weakness in the underlying fundamentals of the transports. Without fail, the data from the transports has been an excellent leading indicator in past recessions. Warren Buffett has even admitted that the rail data is his single favorite indicator to watch. But as equity market have ripped higher, the rails and other transports have lagged. Of course, as time has passed we have witnessed the enormous influence of government stimulus on the economy and the incredible impact of money printing on asset prices. As we begin to see signs that government stimulus is failing to generate jobs and a sustainable recovery, the transports continue to forecast a very weak recovery. Have the transports been right this whole time or is the Fed’s liquidity induced rally a more accurate reflection of the economy?Complete Story » seekingalpha.com |
TravelCenters: Not the Value It Appears to Be? Saj Karsan submits:Across several value metrics, TravelCenters of America (TA) appears to have potential as a value investment. While the company trades for just $85 million, it holds $185 million worth of cash and trades at a price to tangible book value of about .25. However, a slew of factors combine to make the outlook for this company highly uncertain, even for the most long-term of investors.First of all, the company operates in an intensely competitive industry, primarily offering diesel and other services aimed at truckers traveling the highways. Like The Pantry (PTRY), which we discussed last week, it makes slim margins on its petrol products, often entering into price wars with the competition. Recently, one of its competitors entered bankruptcy and was bought out by another competitor, which now has a much stronger competitive position.Complete Story » seekingalpha.com |
Focus on Auto Fleet Transition: U.S. Leads Hybrid Sales Market, for Now Paul Kedrosky submits: The Trouble Turning Over the U.S. Auto FleetMany people, myself included, consistently underestimate the difficulty of transitioning the U.S. auto fleet to something other than gasoline reliance. This chart makes that point clearly, because it's hard to change the fleet when people insist on hanging onto their autos ever-longer.Complete Story » seekingalpha.com |
Breach Disrupts Munich Airport Unidentified man sets off alarms at Munich, Germany, international airport when screening of his laptop computer indicates presence of explosives; man simply picked up computer and walked away, setting off fourth airport security scare in month; incident causes flight cancellations and delays for thousands of travelers; photo query.nytimes.com |
American Axle Sees a Volatility Play optionMONSTER submits: By Chris McKhann Volatility remains high for American Axle and Manufacturing (AXL), and at least one trader is trying to take advantage of inflated option premiums.Complete Story » seekingalpha.com |