| Audi Confirms Development of E-Tron All Electric Car TheCarConnection.com submits: The Volkswagen (VLKAY.PK) family is growing by leaps and bounds. Not only is Porsche planning to expand its lineup to include a "bottom-of-the-range" vehicle priced "significantly" below the Boxster, but also Audi has confirmed that it's moving the recently revealed e-tron EV concept into development.The news comes from Audi of America’s Johan de Nysschen, and it's somewhat of a surprise. When the Audi e-tron debuted in Frankfurt last month, the company had nothing to say about the concept's potential future in the Audi lineup. Frankly, it looked as if the closest the e-tron might come to production would be as a virtual model headlining the Vertical Run videogame on Sony's PlayStation Home. However, de Nysschen now expects to see working prototypes on the tracks within 24 months.Complete Story » seekingalpha.com |
If Burlington Northern Is 'Fully Valued', Is Berkshire Overvalued? Ravi Nagarajan submits:In an amended filing of the proxy for Berkshire Hathaway’s (BRK.A) proposed acquisition of Burlington Northern Santa Fe (BNI), new details have been provided regarding Burlington Northern’s management forecasts of future results based on a number of different macroeconomic assumptions. The restrained nature of the forecasts and the fact that management projections for 2010 net income are lower than Wall Street consensus forecasts, even under the most optimistic scenario, was the subject of an article in Barron’s over the weekend. In addition, Warren Buffett’s comment during negotiations that Burlington Northern is worth approximately mid-$90s per share has attracted attention particularly given Berkshire’s use of stock to fund part of the transaction. Let’s take a brief look at some of the more interesting information in the latest proxy filing.Complete Story » seekingalpha.com |
Why I Don't Expect a Lithium-Ion Battery Glut John Petersen submits:It's no secret that I think plug-in electric vehicles are unconscionable waste and pollution masquerading as conservation. To support my opinions, I've published an easy to follow Excel spreadsheet that shows why plug-ins are 5x to 6x less effective than HEVs when it comes to reducing national gasoline consumption and 9x to 12x less effective than HEVs when it comes to reducing national CO2 emissions. To date, the only challenges to my analysis have come from die-hard EV fanatics who seem to believe battery factories grow on trees and raw material supply chains sprout like flowers in an alpine meadow. In early February, Joann Muller of Forbes warned of a coming Electric Car Battery Glut based on published estimates that global lithium-ion battery manufacturing capacity would reach 36 million kWh by 2016. Just this week, Roland Berger Strategy Consultants released a study that forecasts a lithium-ion battery supply bubble between 2015 and 2017 and predicts an industry-wide consolidation where "only six to eight global battery manufacturers will survive in the next five to seven years."Complete Story » seekingalpha.com |
ZipCar Files for an IPO Kid Dynamite submits: ZipCar, the metropolitan car sharing service, has filed for an IPO. I've never used ZipCar, but as a former NYC resident, I've seen them frequently, and I get the impression that their user base loves the product. In case you're unaware, from the filing: Zipcar operates the world’s leading car sharing network. Founded in 2000, Zipcar provides the freedom of “wheels when you want them” to members in major metropolitan areas and on university campuses. We provide over 400,000 members, also known as “Zipsters”, with self-service vehicles that are conveniently located in reserved parking spaces throughout the neighborhoods where they live and work. Our vehicles are available for use by the hour or by the day through our easy-to-use reservation system, which is available by phone, internet or wireless mobile devices. Once the vehicle is reserved, a Zipster simply unlocks the vehicle with his or her keyless entry card (called a “Zipcard”), and drives away. Our all-inclusive rates include gas and insurance so Zipsters can easily estimate the total cost of their trips. Zipsters choose the make, model, type and even the color of the Zipcar they want based on their specific needs and desires for each trip. Upon returning the Zipcar, the member locks the vehicle and walks away, free from the costs and hassles of car ownership. Zipcar provides its members a convenient, cost-effective and enjoyable alternative to car ownership. I found it interesting that Zipcar later says, "We target large, densely populated markets with high parking costs and strong public transportation systems." Now, large densely populated markets: that I understand. Why strong public transportation systems? If you have a strong public transportation system, don't you need cars less? The filing mentions many times how public transportation is not suited to many uses that suit the Zipcar well, but then why target markets with strong public transportation? Similarly, they target high cost of parking markets, because those markets make it harder for individuals to justify buying a car, and thus easier to justify Zipcar. However, it makes it difficult to park your Zipcar somewhere while you're using it (Zipcars have reserved parking spaces, but if you want to drive to a friend's house in the city, obviously, you still need to find a space to park when you get there). I am guessing that Zipcar's target market in these tough parking areas is "errand-runners," ie, people who don't need to park the Zipcar in front of their apartment when they get back, but rather just need to unload the bounty they just picked up at Costco in the Zipcar. This brings me to the part of Zipcar's business model I never understood, and couldn't gain much insight into from reading their IPO filing: THEIR parking costs. In NYC, it can easily cost $400/month or more to park a car. Does Zipcar get discounts from the parking lots? Or do they just rely on the assumption that they'll bring in revenue that will allow them to shell out massive parking costs? Anyway, it's an interesting company, with what I think is a fanatical, loyal user base. Of course, the company cautions in a disclaimer: We have experienced net losses in each year since our inception, and we expect to incur net losses in 2010. We do not know if our business operations will become profitable or if we will continue to incur net losses in 2011 and beyond. We expect to incur significant future expenses as we develop and expand our business, which will make it harder for us to achieve and maintain future profitability. We may incur significant losses in the future for a number of reasons, including the other risks described in this prospectus, and we may encounter unforeseen expenses, difficulties, complications, delays and other unknown events. Accordingly, we may not be able to achieve or maintain profitability.Complete Story » seekingalpha.com |
Trinity Industries Inc. Q2 2010 Earnings Call Transcript Trinity Industries Inc. (TRN)Q2 2010 Earnings CallJuly 29, 2010 11:00 am ETComplete Story » seekingalpha.com |