TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Auto Industry: Regulation as Stimulus Ryan Avent submits: Today's biggest economic news is actually being made by the EPA. The agency will declare today that carbon dioxide poses a public health threat, and that tailpipe emissions contribute to climate change. That finding sets the stage for EPA regulation of CO2 emissions. As Brad Plumer says here, it's difficult to overstate the importance of this result. It means that the United States will take action to reduce emissions, no ifs, ands, or buts about it. The big question is how this action will be taken. The most common interpretation of the dynamic is that the EPA's ability to regulate CO2 will light a fire under legislators to get something done. Congress wants to be in the room when the rules are made, and to do that, they need to convince the agency that they'll actually get a bill through both houses in a reasonable time frame.Complete Story » seekingalpha.com |
Baltic Dry Index Now on 23-Day Winning Streak Hickey and Walters (Bespoke) submit: The Baltic Dry Index, which measures global shipping rates, continues to soar back from its low of 663 seen in late 2008. The index is currently on a 23-day winning streak, and at 4,291, it is up 547% from its low. Unfortunately, the Baltic Dry fell 94.7% from its 2008 high, so it still has to rise another 175% to reach new highs. Regardless of the distance from its prior high, the sharp rebound in shipping rates definitely provides ammo for those that argue that the global economy is recovering.click to enlargeComplete Story » seekingalpha.com |
Portfolio Update: Lockheed Martin and Allegheny Technologies I picked up shares of Lockheed Martin (LMT) at $76 per share Wednesday. Lockheed has dropped from the mid 80’s after reporting a decline in profitability and amidst news that the U.S. government cut funding for the F-22 fighter jet program. I think the nation’s largest defense contractor is very attractive at this level. It’s trading at just 10 times earnings and has a solid balance sheet. I also bought Allegheny Technologies (ATI) at $28.40. Allegheny was down 18% after reporting negative earnings for Q2 and forecasting no earnings growth for Q3. This stock could drop to $26 in the short term but I like the upside potential when metal prices rebound and the aerospace industry recovers.Complete Story » seekingalpha.com |
Don't Let a Journalist Evaluate Cash for Clunkers Monday's WSJ article: Clunkers in Practice: One of Washington's All Time Dumb Ideas proves one of my long time suspicions: Most newspaper journalists write because they don't have enough sense to hold a business job. (Proof: look at circulation of newspapers now that they have competition from the Internet.)From a business perspective there are two issues on whether cash for clunkers was worthwhile: the first is the long-term value proposition which was to come from energy savings and the second is short-term stimulus which is the effect it had on total sales. Complete Story » seekingalpha.com |
Why GM Is Repaying Bailout Money Edward Harrison submits:There are a lot of threads to tie together in today’s reporting of news in the auto sector. General Motors has reported a third-quarter loss of $1.15 billion. But all indications are that car sales continue to outpace expectations in the United States. Meanwhile, there are conflicting stories that GM both plans to pay back its bailout money, and to use it to help its ailing European operations. I will try to tie all these stories into a common thread.Complete Story » seekingalpha.com |