TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Chrysler's Clock Is Ticking Robert Salomon submits: Last week, in the post Chrysler/Fiat Update, I suggested that Chrylser’s debtholders would likely be better off with Chrysler in bankruptcy. I wrote:Some creditors (e.g., secured bondholders debtholders) would likely be better off with Chrysler in bankruptcy than make the kinds of concessions that would allow the Fiat deal to go through.Complete Story » seekingalpha.com |
GM: Expect More Short Covering Gerry Sullivan submits: GM, now trading as [[GMGMQ.PK]], is currently $1.65 in the pre market. I had previously thought that the opportunity for a short squeeze had passed early last week, but it appears that once again I was wrong. GM has rallied 500% from its 27 cent low on June 1.There are several reasons for the move. One which I mentioned before was the very high cost of borrowing GM shares to maintain a short position. The longer the GM bankruptcy lasts, the more it costs to stay short. Shorts could be paying 50 to 75 cents per month to borrow. It is simply cheaper to cover.Complete Story » seekingalpha.com |
Royal Caribbean Cruises Ltd. Q2 2009 Earnings Call Transcript Royal Caribbean Cruises Ltd. (RCL)Q2 2009 Earnings CallJuly 29, 2009 9:00 am ETComplete Story » seekingalpha.com |
Tata Motors: Time to Hit the Brakes? Shiv Kapoor submits: In looking at Tata Motors (TTM), the first thing that jumps out is the poor condition of the balance sheet. On 31 March 2009, the debt on the balance sheet was Rs 392.134 billion ($8.7 billion); that is an astounding Rs 763 per share ($17). After reducing cash and cash equivalents, the net debt comes in at Rs 683 per share ($15). Shareholder equity was Rs 59.406 billion ($1.3 billion) or Rs 116 per share ($2.6). The net debt to net debt plus equity ratio is 86%. This is well over debt levels I consider prudent. My tolerable net debt to net debt plus equity ratio is 30%. For a car maker, a slightly higher than 30% is okay in some circumstances; they typically use a quasi financial services business to drive sales growth through financing buyers. For instance, when I last looked, Honda Motor Company (HMC) has a ratio of 48%. Complete Story » seekingalpha.com |
Berkshire Well Positioned for Buffett's Prediction on Electric Cars Ravi Nagarajan submits:Warren Buffett met with students from Rice University’s graduate school of business Friday. Each year, Mr. Buffett meets with several groups of business students and provides advice on business and investing topics. According to an article in the Houston Chronicle, Mr. Buffett made some comments regarding peak oil and the prospects for electric cars: Goetgeluk [President of Rice University's finance club] asked what Buffett thought of the peak oil theory — that oil production has peaked and will only decline in the future — and what he believed would replace carbon fuel. Buffett told him that in 20 years, he believes all the cars on the road will be electric. He’s already invested in a Chinese company working on the technology to make it happen.Complete Story » seekingalpha.com |