TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Johnson Controls F4Q09 (Qtr End 9/30/09) Earnings Conference Call Transcript Johnson Controls Inc. (JCI)F4Q09 (Qtr End 9/30/09) Earnings Conference CallOctober 27, 2009 11:00 AM ETComplete 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 |
Time to Ring the Register on Boeing? Ockham Research submits: Shareholders of Boeing (BA) have endured some tough news over the last year, with a contentious and drawn out bidding war for the US Air Force Tanker contract and multiple delays on delivery of the 787 Dreamliner. Some of these issues also dragged down financial results of the Chicago company as they have missed analysts’ estimates in five of the last seven quarters. However, despite the setbacks, the stock has really taken flight, returning 146% over the last twelve months. The tide has turned for Boeing with production of legacy aircraft really picking up and they are now considered the favorite to win the USAF’s tanker contract worth tens of billions of dollars. In addition, today Boeing reported positive initial results from stress tests of 787 wings. It appears that the two projects that have plagued the stock recently, may actually play out the way Boeing had hoped after some rough years. Value investors who astutely picked up shares of Boeing when they were cheap (and we recommended them: Boeing: Dreamliner Delays Are a Gift) last fall in the high $40-low $50 range, may be wondering what is the appropriate timing to exit the stock. We are not saying that this is the time because Boeing is performing quite well at the moment, but the time may not be far off. Boeing stock will almost certainly get a boost from the first delivery of the Dreamliner (after five different delays) which today’s test suggests should be within the year. The tanker contract may be settled even sooner, as EADS will decide on if it will submit a new bid for the contract in the next few weeks. It would seem logical that Boeing’s stock would continue to climb higher on positive news such as this.Complete Story » seekingalpha.com |
Deadly Truck Explosion Closes the L.I.E. 10 Hours The fuel tanker’s driver was killed in the explosion on Saturday, and the resulting fire damaged the highway. nytimes.com |
Overseas Shipping: A Fleet of Ships at 30% Off SL Advisors submits:Overseas Shipping Group (OSG) has become quite attractively priced over the past few weeks. OSG is a leading bulk shipper of crude oil and petroleum products around the world, operating 113 vessels (with 15 more under construction). Their business is organized into four divisions: Crude Oil, Products, U.S. Flag and Gas. They also participate in five different “pools”, which are co-operatives of shipping companies that provide more efficient sourcing to customers by pooling resources.We were attracted to them by their low debt, simple balance sheet and valuation. Demand for ships is obviously sensitive to global trade flows and commodity prices. In addition, they do an increasing amount of their business on the spot market rather than negotiating long term charters, which increases their sensitivity to short term rate fluctuations. Recent economic weakness has hit their stock price quite hard, and their 2Q10 time charter equivalent revenues (shipping revenues less voyage expenses) were down 7% producing a loss of $1.26 per share ($0.34 after extraordinary items). Consensus estimates for 2011 are that they’ll earn $2.14 per share.In 2008 they earned $10.71 a share.Complete Story » seekingalpha.com |