Posts related to ‘Infrastructure’

The More Focused, and More Opaque, Buffett & Berkshire Hathaway (BRK-A, BRK-B, BNI, UNP, NSC, GS, GE, TIF, HOG, WMT, COP, XOM, WFC, RSG, DOW, ETN, WBC, MCO, WLP, UNH, GSK, SNY, GCI, WPO)

This was an important week for investment guru and billionaire watchers to see which gurus were holding which stocks.  The full public equity holdings of Warren Buffett via Berkshire Hathaway Inc. (NYSE: BRK-A) were particularly of note, particularly with those B shares under “BRK-B” soon to split and giving a chance for even the less astute ranks of Joe Public to own a piece of the Berkshire dream.  Obviously the huge change is via the Burlington Northern Santa Fe Corp. (NYSE: BNI) buyout.  As part of this deal, Buffett is exiting Union Pacific (NYSE: UNP) and exiting Norfolk Southern (NYSE: NSC) stakes of about $600 million and $100 million, respectively, to avoid duplication and internal competition.  The rail transport play now accounts for about one-quarter of the total Berkshire Hathaway entity upon closing. But the less obvious position in that Warren Buffett in 2009 has made it clear that there will be a simpler and probably less “stock-hound” version of Berkshire Hathaway ahead.

Buffett has gone higher up the food chain and is likely to be a creditor now inside or to large institutions.  We have seen this during the crisis.  Buffett negotiated a better deal for Goldman Sachs Group (NYSE: GS) than the US Government was able to get.  Buffett’s preferred stock in Goldman Sachs has a dividend of 10% and is callable at any time at a 10% premium; but Buffett also got warrants to purchase $5 billion of common stock with a strike price of $115.00 per share, exercisable for a five-year term (4 years now), and Buffett would effectively get to pocket $61 per share if he exercised those all today at the market (and with a $2.6 billion warrant profit alone).

The General Electric Co. (NYSE: GE) stake was listed only as 7.77 million shares of common stock (about $125 million now), the same as it has been for quarters.  Yet last year Buffett came to the rescue with a $3 billion of perpetual preferred stock in a private offering with a dividend of 10% and warrants to purchase $3 billion of common stock.  The preferred is callable after 3-years (2 years now) at a 10% premium; the warrants have a strike price of $22.25 and are exercisable for a five-year term (4 years now).
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Posted on: November 19, 2009 – 8:59 am in Activist Investor, Bonds, Buffett, Conglomerates, Dividend, Editor's Picks, Infrastructure, Large Cap Stocks, Mergers and Buy Outs, Oil & Gas, Private Equity, Transports, Value Investing, , , , , , , , , , , , , , , , , , , , , , , ,

Reviewing the New Smart Grid ETF (GRID, PBD, PZD, PBW, QCLN)

If you thought you might not see another green energy or less-dirty energy exchange traded-fund, there is a new ETF for you.  First Trust Advisors is launching the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund of the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ: GRID) today.  So far we are seeing a gain in the ETF by 0.8% to $30.39, but on fairly thin trading volume of about 134,000 shares as of 11:20 AM EST.  We have seen many other green ETFs, but this is actually the first designated ETF or ETN that is geared solely toward the smart-grid rather than just to green energy.  There will be some overlaps in this ETF with others, but that is often the case.

This ETF aims to track equity index called the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index, which is designed to act as a “transparent and liquid benchmark” for the grid and energy infrastructure sector.  The most interesting aspect of this is that it may highlight which individual companies are making leaps and bounds here in the smart grid.  As you might expect, there are many overlaps in here with the other clean or green ETF products via the PowerShares Global Clean Energy (NYSE: PBD), PowerShares Cleantech (NYSE: PZD), PowerShares WilderHill Clean Energy (NYSE: PBW), and the First Trust NASDAQ Clean Edge Green Energy (NASDAQ: QCLN).
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Posted on: November 18, 2009 – 11:40 am in ADR, Alternative Energy, ETF, Editor's Picks, Green Biz, Infrastructure, Utilities, , , , ,

Steel IPO Filing: Hirschfeld Industries, Inc. (HSFD)

Hirschfeld Industries, Inc. filed after the close on Monday to come public via an initial public offering of up to $150,000,000 in equity being sold via the New York Stock Exchange under the stock ticker “HSFD.”  No terms and conditions were set, so that $150 million should be considered as “for filing purposes only.”  Stock will be sold both by the company and by shareholders, and proceeds to the company are earmarked for debt repayment and for general corporate purposes.
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Posted on: November 17, 2009 – 11:46 am in IPOs, Infrastructure, Metals,

Transportation Companies Expect Huge Stimulus Windfall

New research indicates that transportation companies will benefit the most from the government’s huge stimulus investment in infrastructure. According to a new ChangeWave survey of 313 people who work for companies involved with infrastructure projects done between September 29 and October 5,  alternative energy will be that other sector that will do well because of federal investment in new products.

Fifty-six percent of those surveyed believe that
transportation infrastructure will see the largest benefit and 43% picked alternative energy projects. The poll also noted that water infrastructure has experienced the largest increase since the previous survey in March — jumping 10 points to 21%. Read More »

Posted on: November 17, 2009 – 5:59 am in Alternative Energy, Green Biz, Infrastructure, , , , ,

AES Debate: China’s Infrastructure Grab (AES)

bull-and-bear-imageChina is at it again buying key infrastructure access.  AES Corp. (NYSE: AES) disclosed on Friday, along with earnings, that the company was raising significant cash.  This is a capital raise which also may ‘raise some eyebrows’ because the company is selling a 15% stake to China’s sovereign wealth fund, China Investment Corporation.  The stake sale will bring in $1.58 billion for expansion of global projects.  AES also announced a Letter of Intent to sell a 35% minority stake in its global wind generation business valued at $571 million on top of the stake sale.
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Posted on: November 7, 2009 – 11:59 am in China, Emerging Markets, Infrastructure, Mergers and Buy Outs, Private Equity, Regulation, Utilities,

Brazil Olympic Stock Plays Feeling Lofty (EWZ, BRF, BZF, BBD, BRP, BTM, BAK, PDA, EBR, ABV, ELP, SID, CPL, ERJ, GFA, GGB, GOL, ITUB, NETC, PBR, TAM, TNE, TSP, VALE, VIV, VCP)

Rio Olympic ImageInvesting into emerging markets where the Olympics are headed is supposed to be a safe bet, in theory.  Despite a flat close for stocks in the U.S. on Friday, Brazilian shares rose almost across the board Friday after last week’s decision to send the 2016 Summer Olympics to Rio de Janeiro.  It was huge for the iShares MSCI Brazil (NYSE: EWZ) gaining 1.9% to $67.30 ($26.64 to $68.50 is the 52-week range) and the Market Vectors Brazil Small-Cap ETF (NYSE: BRF) rose 1.5% to $39.76 (its 52-week range is $23.68 to $40.42).  The WisdomTree Dreyfus Brazilian Real (NYSE: BZF) currency ETF rose 0.54% to $25.89.

Outside of the ETF investing, this story becomes one where stocks may still have great growth prospects.  But if you are a value investor or one who does not like to chase stocks when they are close to yearly or all-time highs, then there is a problem.  So many of these stocks are hitting highs or are so close that you have to wonder just how much upside is there.  Using 52-week highs and all-time highs is of course not the only metric for valuations, but you might be surprised as you read through a summary of the major Brazilian stock performances on Friday alone.  Throw in the Brazilian Real currency versus the US Dollar component as these are all ADRs and it adds in yet another element.

Banco Bradesco S.A. (NYSE: BBD) is the huge Brazilian bank and its shares rose 1.8% at $19.94, with a 52-week trading range of $7.40 to $20.20 and an all-time high north of $24.00.

Brasil Telecom Participacoes S.A (NYSE: BRP) is a telecom player in Brazil and its shares rose 2.9% to $52.33, with a 52-week trading range of $22.00 to $53.49 with highs in 2007 and 2008 hitting north of $80.00.

Brasil Telecom S.A. (NYSE: BTM) is a telecommunications services provider whose shares rose 3.3% to $26.28 and its 52-week trading range is $9.49 to $26.55 and it was in the mid-$30’s in early 2008.

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Posted on: October 5, 2009 – 7:01 am in ADR, Commodities, ETF, Economy, Emerging Markets, Entertainment, Financial Stocks, HI/LOW, Infrastructure, Large Cap Stocks, Politics, , , , , , , , , , , , , , , , , , , , , , , , , ,

Cisco (CSCO), Unable To Help Itself, Buys Tandberg

ciscoCisco (CSCO) continues to buy companies at a rapid-fire pace. It added video infrastructure and transport company Tandberg to its video hardware and software portfolio, paying $3 billion in cash for the firm. Read More »

Posted on: October 1, 2009 – 4:42 am in Infrastructure, Mergers and Buy Outs, Technology Companies,

Cutting Cat in Half Never Looked So Good (CAT)

Caterpillar LogoCaterpillar Inc (NYSE: CAT) gave us some figures this morning showing that there is still some trouble in this economic recovery.  The maker of heavy industrial vehicles and equipment showed that dealer sales of its heavy equipment fell by a whopping 48% in August.  The largest drop was in the truck and bus segments and in its industrial segment.  The economy may be stabilizing, but an effective cut in half of these does not bode well for the thesis of a sudden return of large investments into cap-ex.  There is still some hope here that comparable sales figures will start to get easier after the next month or so.
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Posted on: September 21, 2009 – 1:56 pm in Infrastructure, Retail,

Warren Buffett, Wind Investor? (BRK-A, GE)

Buffett ImageMid-American Energy, a holding of Berkshire Hathaway Inc. (NYSE: BRK-A) and a holding of Warren Buffett, is about to get into the U.K. offshore wind power business if the reportsfrom the weekend in the U.K’s Times Online are accurate. The new plan is meant to go off in phases off the coast of Kent in the U.K. and this round is said to be approximately 1 billion pounds.  That is $1.61 billion in today’s dollars and is actually only about one-twelfth of the total estimated size of the auctions that will be made in the coming months and years.
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Posted on: September 21, 2009 – 11:06 am in Alternative Energy, Buffett, Infrastructure, Utilities, ,

In A123 Battery IPO, Buffett Indirectly Wins (AONE, BRK-A, GE, QCOM, MOT, SCMR, AB, PG, AAPL)

A123 LogoBuffett ImageNext week is still supposed to mark the initial public offering of what me be a very hot IPO.  Auto electric-battery maker A123 Systems Inc. is tentatively set to launch and begin trading mid-next-week under the stock ticker “AONE” on NASDAQ.  We have penciled in a date of September 23 or 24, but if you have been watching IPOs for years you know that date can change.  This one has been in the IPO hopper almost forever as the IPO filing date was in August 2008.

We’ll get to this a little later, but we did note in the title that Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK-A) may be the indirect winner here in this offering.  A123 raised a fairly recent round led by General Electric Co. (NYSE: GE) and affiliates, which has a 11.7% stake.  At the time the company filed to come public it has raised roughly $160 million and it has large stakes held by venture capital firms (North Bridge, Sequoia and others), Qualcomm Inc. (NASDAQ: QCOM) has a 7.6% stake and Motorola Inc. (NYSE: MOT) has a 6.9% stake.  Gururaj “Desh” Deshpande, the co-Founder and Chairman of Sycamore Networks, Inc. (NASDAQ: SCMR), also has a 9.9% stake.  AllianceBernstein Holding L.P. (NYSE: AB) and Procter & Gamble (NYSE: PG) are also listed under the investors of the company.
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Posted on: September 15, 2009 – 11:35 am in Alternative Energy, Autos, Buffett, Conglomerates, Consumer Electronics, Editor's Picks, Green Biz, IPOs, Infrastructure, Private Equity, , , , , , , , ,

China’s Insatiable Energy Deals Only Growing (PTR, XOM, CVX, RDS-B, SNP, CEO, MRO)

oil-well-image1On Monday, the Shanghai Composite went under 2,700 and between Monday and Tuesday is back to lows not seen since May’s end. Technically, it is back in bear market territory now that it has come off 20% from the highs.  But there is one single aspect here which may be the silver lining for China.  As asset prices sink, it is easier for China and its central government to buy more and more of whatever it wants on the cheap.  While the notion that China’s deal making for key assets is not new, the pace at which China is locking in energy supply deals seems to only be increasing. And it is effectively doing it without a single handshake taking place on US soil and without US oil.

After reviewing some of the public deals that China has been making, it is rather obvious that its  appetite to buy and secure more sources of oil and gas is not ending whether China is technically in the 2007 to 2009 recession or not.  If you have what many Westerners believe is a 50-year plan, then overextended Americans, lower commodity prices, and cheaper stocks of key infrastructure and energy players just makes it easier  to buy up oil and gas for all of the energy needed to power the infrastructure for over 1.3 billion people.  China has already spent billions in several bigger public deals and it seems as though the size and the pace is only rising.
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Posted on: September 1, 2009 – 6:01 am in China, Editor's Picks, Emerging Markets, Infrastructure, Mergers and Buy Outs, Oil & Gas, Politics

US May Take Fifteen Years To Catch South Korea Internet Speeds

youtubeAmerican internet speeds are slow, very slow by international standards. That may be one of the reasons that the $787 billion economic stimulus package has a large financial commitment to building broadband infrastructure.

The US ranks 28th among large countries in internet connection speeds according to new data from the Communications Workers of America. The organizations has a reason to track the information. Many of the union members’ jobs rely on cable and telecom firms continuing  to invest to build  larger broadband  systems, particularly the communications giants Comcast (CMCSA), Time Warner Cable (TWC), AT&T (T) and Verizon (VZ). Read More »

Posted on: August 26, 2009 – 5:42 am in Cable Companies, Infrastructure, Internet, Technology, Telecom, , , ,

The Best Short-Selling Opportunities Of The Year (C)(GE)(F)(SBUX)(SIRI)

angrybearThere is still some conversation about the federal government restricting short-selling activity in certain stocks. The counterargument to these restrictions is that short selling plays an important role in the valuation of securities by efficiently allowing investors to bet that a stock will fall as readily as they can bet that it will rise. Short sellers have the reputation, whether deserved or not, for trying to manipulate information about public companies with the hope of driving their prices down. That may be true.

24/7 Wall St. has come up with a list of the best short-selling opportunities between now and the end of the year. The list was chosen based on: 1) trading volume, 2) the total short position in the stock over the first half of the year, 3) a history of the short position in these stocks rising or falling rapidly, and 4) stocks in companies that tend to move on news throughout the year and not just on earnings information. Read More »

Posted on: July 5, 2009 – 5:54 pm in Airlines, Analyst Calls, Autos, Banking, Biotech, Casinos, Conglomerates, Consumer Electronics, Dividend, Drug companies, Editor's Picks, FDA, Green Biz, Hardware, Healthcare, Infrastructure, Internet, Large Cap Stocks, Medical, PC Companies, Pharmaceuticals, Private Equity, Retail, Short Interest, Software, Technology, Turnarounds, Wireless, , , , , , , , , , , , , , , , , , , ,

DJIA Component Replacement Candidates for GM (GM, F, CSCO, ORCL, GOOG, AAPL, CL, HON, PEP, TGT, MDT, ABT, GS, BRK-A)

The bets are on that General Motors Corp. (NYSE: GM) is done as far as the current stock is concerned.  While it seems that the equity holders of today will keep 1% of the “New Co.,” this is far from fitting into parameters of being one of the thirty components of the Dow Jones Industrial Average.  We have speculated on this with other companies moving in and out, but we have compiled a list of companies which we think could be replacements.  We have also listed some of the companies we think will not be included that many traders and investors might be hoping could be up for inclusion.
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Posted on: May 27, 2009 – 11:05 am in Autos, Buffett, Conglomerates, Index, Infrastructure, Large Cap Stocks, Trading Alert, , , , , , , , , , , , , ,

The Ten Ways Twitter Will Permanently Change American Business

newspaperMicro-blogging platform Twitter has 32 million users, which is an increase from about 2 million a year ago, according to research mentioned in The Wall Street Journal. Some Internet measurement services show that figure increasing 50% to 100% month-over-month. While it is not clear that Twitter will become as large as social networks, MySpace and Facebook or video-sharing site YouTube, the company could certainly have 50 million visitors by the end of the year. Read More »

Posted on: May 26, 2009 – 8:11 pm in Banking, Business Services, Cable Companies, Consumer Electronics, Editor's Picks, Entertainment, Infrastructure, , , , , , , , , , , , , , , , , , , , , ,

Is Carbon Trading or Cap and Trade Dying On The Vine? (ICE, CME, NDAQ, BRK-A)

carbon-emission-imageOne of the Obama proposals to fight global warming and climate change may be up against the ropes.  This is emissions trading, or what the media calls “cap and trade.” There are many who consider this type of emissions trading to be the Holy Grail, and there are many who claim it does nothing other than create a business expense or hidden tax.  It could represent a huge new market for the IntercontinentalExchange, Inc. (NYSE: ICE) and the CME Group Inc. (NYSE: CME), as well as Climate Exchange plc (OTC-CXCHF) as the owner of the Chicago Climate Exchange.  Climate Exchange plc (LSE: CLE.L) is an AIM listed company which owns the world’s leading environmental exchanges.

We think that it is probably too early to call “cap & trade” a dead idea.  But what is looking more likely is that at best what will be headed to a Congressional vote is a greatly watered-down version of cap & trade.  If a watered-down version does not come first, then we have many reasons to believe that this may be an issue to debate in 2011 rather than 2009.

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Posted on: May 4, 2009 – 1:45 pm in Banking, Commodities, Exchange News, Financial Stocks, Green Biz, Infrastructure, Politics, Regulation, , , ,

GE-Cisco-FPL Take On Smart Grid & Efficiency (GE, CSCO, FPL)

power-lines-imageGeneral Electric Co. (NYSE: GE), Cisco Systems, Inc. (NASDAQ: CSCO) and FPL Group Inc. (NYSE: FPL) are all over the media today about an event with the Miami, Florida, mayor  for energy efficiency.  A conference call will be held at 1:00 PM EST today to discuss “a groundbreaking new energy public-private alliance that will promote energy efficiency, renewable energy and give the city, county, local businesses and Miami area residents more control over how they generate, consume and conserve electrical power.”
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Posted on: April 20, 2009 – 8:31 am in Infrastructure, Utilities, , ,

Caterpillar Sales Data Look Like Crater-Pillar (CAT)

cat-logoCaterpillar Inc. (NYSE: CAT) reported some absolutely atrocious numbers for its January orders on deliveries for its machinery and engines lines of business.  This equipment is mostly sold through independent dealers and OEM’s.  Caterpillar’s independent dealers reports are unaudited and are not subject to Caterpillar’s own internal controls, but they will not inspire much confidence in investors eager for signs the economy is improving.  It is no surprise that the stock is barely above a recent low.
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Posted on: February 19, 2009 – 10:09 am in Industry, Infrastructure, International Markets,

Green News: Efficiency as an Energy Resource

power-lines-pic1Utility companies have long faced a dilemma. On one hand, in order to grow profits, they must sell more electricity. On the other hand, they must support conservation as a means of keeping their customers’ costs down.  This dilemma contributes to an ever-expanding demand for electricity.

According to the US Energy Information Administration, demand for electricity will grow about 1% a year through 2030. On a base of 3.9 billion kilowatt hours, that is not an insignificant percentage. The EIA estimates that 46,000 megawatts of new generation capacity will come in the form of coal-fired plants.
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Posted on: February 17, 2009 – 9:19 am in Alternative Energy, Green Biz, Infrastructure, Utilities

Rough Week For Smart Grid Players (ITRI, DGII, COMV, ENOC, ELON)

power-lines-picItron Inc. (NASDAQ: ITRI) is supposed to be one of the winners in the stimulus package.  The advanced metering company is known as the Smart Grid meter reader to many traders.  The company is involved in metering, data collection and utility software solutions for electric, water, and gas utilities, and it claims nearly 8,000 utilities worldwide as its customer base.  This is one of the companies deemed to be a winner under the Obama stimulus package.  Where this gets interesting is that Digi International (NASDAQ: DGII), Comverge, Inc. (NASDAQ: COMV), EnerNOC Inc. (NASDAQ:ENOC), and Echelon Corporation (NASDAQ: ELON) are all other smart grid plays and not large caps that have had a rough week in stock prices.
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Posted on: February 13, 2009 – 10:21 am in Cult Stock, Infrastructure, Technology Companies, Utilities, , , , , , , , , , , , ,