| Railroaded by Burlington Northern Santa Fe Markos Kaminis (Wall St. Greek) submits: The Merriam-Webster Dictionary defines “railroad” as “to convict with undue haste and by means of false charges or insufficient evidence.” The definition seems to fit snugly around what happened on Wall Street Friday, while also offering an interesting play on words. Based on popular press reports, investors convicted the market on the earnings data and forecast warnings of a couple key railroad companies. Specifically speaking, Friday’s downturn was placed squarely on the engine car of Burlington Northern Sante Fe (BNI). Railroad companies and other shippers of goods, including truckers like J.B. Hunt Transport Services (JBHT) and shipping companies like DryShips Inc. (DRYS), are considered barometers of the economic lifecycle. After all, if manufacturers and distributors are moving product, it is going to be visible in the results of the shippers.Complete Story » seekingalpha.com |
Horizon Lines Inc. Q4 2009 Earnings Call Transcript Horizon Lines Inc. (HRZ)Q4 2009 Earnings Call January 29, 2010 11:00 am ETComplete Story » seekingalpha.com |
The Ups and Downs of Airline Stocks Market Blog submits: There are three things you need to know about investing in airlines. These stocks are not for long-term investors, Warren Buffett won’t go near them, and short-term investors can make a killing on them if they’re nimble. Airlines are not like most other businesses. They’re hobbled by stratospheric fixed costs in the form of pricey aircraft and their maintenance needs, along with extreme sensitivity to shifting economic conditions and energy costs.Complete Story » seekingalpha.com |
Rail Traffic Indicator Derailed Nathaniel Crawford submits:The American Association of Railroads ((AAR)) just came out with their monthly report on railroad traffic. The major news is that railroad carloads declined in June as compared to May by 1.3%. This will mark the second consecutive monthly decline in railroad carloads. However, carloads were up 10.6% year over year in June.One would expect some improvement considering we were at depression levels last year. But as you can see from the chart below, railroad volume has never fully recovered from the highs in 2006 and 2007, which shows that despite all the hype about a recovery, the US economy is still depressed.Complete Story » seekingalpha.com |
Bombardier: Q2 Profits Drop on Lower Deliveries of Business Aircraft The world`s third largest commercial plane maker Bombardier (BDRAF.PK) [TSX: BBD.A, TSX: BBD.B] saw a 27% decline in its second quarter fiscal 2011 profits, as it reported net income of $148 million, compared with $ 202 million for the same period last year, largely due to poor performance of its aerospace segment.The company`s other financial results suffered as well, as consolidated revenues dropped to $4.1 billion for the quarter versus $ 4.9 billion last year, while EBITDA fell by 24% to $331 million. Diluted earnings per share were also $0.08, compared to $0.11 a year earlier.Complete Story » seekingalpha.com |