TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Railroad Companies: Good, Better, Best Jack Wx submits:It is well known that Warren Buffett is bullish on the railroad industry. But among the top four American railroad companies, Burlington Santa Fe (BNI), Union Pacific (UNP), CSX (CSX) and Norfolk Southern (NSC), he has clear preferences. BNI is no doubt on the top, UP comes as the second, and NSC and CSX are much less favored. Through this article, I will try to provide my understanding of his logic behind his preferences. I will attempt to answer three questions, 1) why does he pick the railroad industry? 2) Why are CSX and NSC less favored? And 3) why is BNI more favored than UP?To Question 1: Railroad has to be the future of American freight transportationComplete Story » seekingalpha.com |
GM: Trading on Bankruptcy Expectations Dobromir Stoyanov submits:With General Motors (GM) expected to file for bankruptcy soon, GM stock price has been in a freefall. In fact shares have hit the lowest levels since 1932, which was the year Dow Jones Industrials Average bottomed amidst the Great Depression. The stock price is also below $1, making shorting the stock almost impossible. Bankruptcy was one of the options for the major US automakers, when I analyzed the sector back in November.According to this Bloomberg article, once the company files for bankruptcy , the US government would get $30 billion from the US federal government as well as 9.5 billion from the Canadian government. In return the US government would own 60% of the “new” General Motors once it emerges from bankruptcy, while the Canadian government would own 12%. The United Auto Workers health trust fund for retirees will end up owning 17.5 percent of the new company with warrants to purchase an additional 2.5 percent in exchange for forgiving GM the $20 billion it is owed by the Detroit automaker. Bondholders and other creditors would get a 10 percent stake in the new GM, with warrants for an additional 15 percent, in exchange for $27.1 billion unsecured debt according to Bloomberg. If successful, GM will emerge as a leaner company with a smaller work force, fewer plants and a trimmed dealership network.Complete Story » seekingalpha.com |
Airline Industry Not Flying High Robert Herbst submits:As an industry, the airlines just can’t seem to fly very high or very far. Last fall when oil prices dropped rapidly it looked promising on the cost side, but revenues soon began falling even faster than the price of fuel and the optimistic outlook, once again, turned negative.The “industry”, for this analysis, considers the largest 9 US airlines: Delta (DAL), American (AMR), United (UAUA), Continental (CAL), Southwest (LUV), USAir (LCC), JetBlue (JBLU), Alaska (ALK) and Air Tran (AAI).Complete Story » seekingalpha.com |
Airlines: Rising Stock Prices vs. Otherwise Bad News Jim Delaney submits: Given that as of July, 2,535 Boeing (BA) and Airbus aircraft, or 14.2% of the world’s fleet, were in storage one might conclude that this is not the best time to be in the airline business. But as with so many of the things we have witnessed during the unfolding of the credit crisis and the subsequent slow repair of the damage, logic can be your worst enemy. Two of the most striking examples of this came recently as Delta Air Lines Inc. (DAL) raised $1.5 billion in loans and bonds, which was followed just a day later by AMR Corp (AMR), the parent of American Airlines, securing of $2.9 billion in financing. DAL is rated Ba2 by Moody’s and BBB- by S&P. AMR is rated Baa3 and BBB respectively by the two agencies.Complete Story » seekingalpha.com |
Textainer Group Holdings: A Bet on Global Shipping Glenn Rogers submits:I was thinking about updating my recommendations for bulk shippers last week when all of a sudden the group got upgrades from two analysts and the whole sector started to move in a positive direction. This, of course, is a good thing particularly if you've been holding on to them as I suggested. Certainly they've been through a rough patch, along with everything else, but most of them have continued to pay a dividend and as the market improves those dividends will begin to increase.The reason I was taking a fresh look at the shipping group was that I caught an interview with John A. Maccarone, the CEO of Textainer Group Holdings Ltd. (NYSE: TGH), on CNBC. He came across as a lucid, conservative fellow who is heading up an interesting business.Complete Story » seekingalpha.com |