| UAL Corp. Surprises the Shorts Jessica Johnson submits:UAL (UAUA) reported better than expected earnings this week, surprising the large number of short sellers who had taken the short base to a peak of nearly 13% of the shares outstanding. [Read the conference call transcript here.] The volatility of the stock price in recent weeks has been matched by volatility in the short position, reflecting uncertainty about the current outlook for the sector. Most airline stock prices rose on the news, with UAL up 8%. To download full report click here.Complete Story » seekingalpha.com |
Earnings Preview: Honeywell International theflyonthewall.com submits: Honeywell International (HON) is expected to report Q4 earnings before the market open on Friday, January 29 with a conference call scheduled for 8:00 am ET. GuidanceAnalysts are looking for EPS of 90c on revenue of $8.15B. The consensus range is 83c-93c for EPS, and $8.07B-$8.28B for revenue, according to First Call. The company reported mixed Q3 results, beating EPS but missing revenue estimates. Complete Story » seekingalpha.com |
Can Ford Solve the Internet's 'Last Inch' Problem? Larry Dignan (ZDNet) submits: K. Venkatesh Prasad, head of Ford’s (F) infotronics research and advanced engineering team, sees the auto as one big mashup—where computing and the car cabin will meld together to create intelligence that will make a driver’s life easier. The open ended question for Prasad is how to get there. Ford has been working diligently to create a platform that will make in-cabin technology as big of a buying point as reliability, design and safety. However, the rules for this technology push are still being written. It’s not easy to solve “the last inch” problem in a car cockpit where things like social networking, calls and other things on the Internet we take for granted come together at 70 miles per hour.Complete Story » seekingalpha.com |
Great Lakes Dredge and Dock: An Oil Spill Cleanup Stock Tom Konrad (AltEnergyStocks) submits: I've been watching Great Lakes Dredge and Dock (GLDD)for a few months as a possible alternative transportation stock to talk about for my Best Peak Oil Investments series. My thinking goes like this: barge and river transport are two of the most fuel efficient ways to move bulk cargo. Barges are even more energy efficient than rail freight for most uses, according to the Congressional Budget Office. One barge company I watch is Trinity Industries (TRN) which also manufactures and leases rail cars, as well as building wind towers. I profiled Trinity in 2008. While not extremely overvalued at current prices, Trinity is not a bargain at the recent price of $21.60, so I've had my eye out for other companies that might benefit from an increase in barge transport, which is why I started watching Great Lakes Dredge and Dock (GLDD). The more barge traffic there is, the more need for channel dredging and port expansion projects, both staples of GLDD's business. The BusinessComplete Story » seekingalpha.com |
GM Files For IPO Wall Street Strategies submits:by David Silver So the wait is finally over, General Motors filed its needed paperwork with the SEC for its IPO a little more than a year after it entered bankruptcy. It is not really the result I expected, but it is a small step. The Company filed its second quarter earnings release on August 13 and hinted at today’s S-1 filing. I am still working my way through the filing (it is more than 300 pages long), but the initial number that the Company hopes to offer is staggering, and not in a good way. I wrote on Wednesday that I hoped GM would be conservative with its offering in the hopes of generating extra excitement for the IPO: however, only filing for a $200 million IPO is a bit ridiculous. Yes, it is not all the money it hopes to raise, but saying only $200 million just seems like a waste of everyone’s time. Tesla (TSLA) sold 400 vehicles last year, and GM sold more than 8.4 million around the world, and the Tesla IPO raised $224 million. Something seems a bit off, no? However, both companies are completely dependent on government money. I still believe the Company will end up raising between $16 and $18 billion through the IPO, but the filing indicates that only the proceeds from the preferred stock (about $100 million) will go to funding the Company. However, the IPO is expected to get rid of 20% of the government’s investment (about $12 billion), but it should be that the U.S. tax payer has to be made whole again (we would lose money anyway) before anyone can make a dime off of the new GM stock. Will that actually happen? Not likely. So the Street has more data now to digest, but from the looks of it, retail investors won’t have a bite at the first apple. Rumors had it that there was a no holds barred Royal Rumble between underwriters to be a primary underwriter (just kidding, but that would be something I would pay to watch), but Citi (C), JP Morgan (JPM), and Bank of America (BAC) won out. So now it is going to be institutions and large hedge funds that are able to get involved in the IPO. As a retail investor, I wouldn’t be interested in investing in the new GM. The hype is going to be out of this world, but let’s look at the actual business model.GM North America ((GMNA)): Dependent on light trucks, SUVs, and crossovers. The Volt has the potential to be a large failure, and the Company still has to prove that it can compete in the small and medium sized car segment.GM Europe ((GME)): Opel and Vauxhall continue to languish, with sovereign debt problems and incentives expiring sales, and production promise to make the turnaround much more difficult than across the pond.GM International Operations ((GMIO)): Includes Latin America and Asia as well as Russia. Possibly the best segment for the Company as GM is the second largest automaker in China (behind Volkswagen) and has a growing presence in Russia, Brazil and India. China sales slowed during the most recent quarter and it would be great, but 50% growth year over year just isn’t sustainable over the long term.One of the biggest problems for the “Old GM” was debt and the Company got rid of that problem with its bankruptcy problems, but now it has to survive in a relatively stagnant industry. Yes, we will see growth for the next few years in the United States, but if one thinks we are getting back to the 17 million unit level anytime soon, you have another thing coming to you. The Street now has a little more data to punch into their excel spreadsheets, but the question now becomes how quickly can the Company turn this announcement into an actual IPO? Some think it will happen at the end of October through Thanksgiving in the U.S. As I said in an earlier note, coincidence that it is right near Election Day? I think not. I could understand the victory laps around that time if all of a sudden GM raises $60 billion through an IPO and the US taxpayer is no longer in the car business, but that has about much chance of happening as… (You can fill in the blank with the most ridiculous things you can think of). So to recap, General Motors filed for its IPO, indicated only $200 million as its minimum, and now we are back in the waiting game. So Dan Akerson (new GM CEO that takes the job September 1) has his first big challenge, getting the Company trading before the end of the year. Unfortunately, I think it will happen. By Thanksgiving, I expect to see the new shares of GM trading on both the NYSE and Toronto Stock Exchange ((TSX)). I would like to see the Company wait a little longer, further integrate its new finance arm and give the world economy time to get over the next little bump, but I wasn’t hired as part of the Auto Task Force.Disclosure: NoneComplete Story » seekingalpha.com |