Continue reading Northwest cancellations: Will NWA be grounded?

Northwest cancellations: Will NWA be grounded? originally appeared on BloggingStocks on Tue, 24 Jul 2007 18:10:00 EST. Please see our terms for use of feeds.

Continue reading Virgin America enters U.S. airspace -- What does that mean for U.S. airlines?

Virgin America enters U.S. airspace -- What does that mean for U.S. airlines? originally appeared on BloggingStocks on Thu, 19 Jul 2007 18:00:00 EST. Please see our terms for use of feeds.

There is a bit of glee circulating on the frozen tundra amid news that the Canadian dollar has hit the equivalence of 92.34 American cents, its highest point in 30 years. TD Securities Inc. chief currency strategist Shaun Osborne states that it is possible that the Canadian dollar could reach a value of .96 cents by June. Analysts agree that if commodity prices continue to rise, there stands a good chance that the two currencies would equalize. I say if that point is reached the two currencies should be immediately put into lockstep and our fluctuating currency exchange on our northern border should end forever. Could it be done? Yes, it could. Will it ever happen? Probably it won't.

Personally, I think the benefits would far outweigh the temporary disadvantages. Granted, I expect there would be quite a tussle in the commodities exchange for a time but that's a self adjusting system anyway. NAFTA paved the way for the "free flow" of goods and materials across our borders. Currency equalization would take the teeth out of much of the damage that tilted document has inflicted upon the American economy. I suspect that Canadian manufacturers might get just a little testy about the idea, but I believe that in the long run it would level the playing field for them as well as us. I also think it would give North America a lot more leverage in the world markets.

Economic idealists and world view visionaries already have a name for a singular North American currency. Do a web search for the word "Amero" and you'll spend the rest of your week reading about it. You'll receive every point of view you could ever imagine. Some say it would be the next step to the "One World Government," some say it would be a protectionist move. I say it's the most logical step toward stabilizing two very powerful yet unsteady economies. I see it as a grand statement to the rest of the world that there's still a force to be reckoned with over here pinned between the Atlantic and Pacific oceans.

Then, if we could just annex Mexico...

Canadian dollars and American dollars: A peso for your thoughts. originally appeared on BloggingStocks on Wed, 23 May 2007 17:15:00 EST. Please see our terms for use of feeds.

A few days ago, the U.S. Department of energy has seen fit to throw its hat into a $40 million solar energy development project launched by BP Plc ADS (NYSE:BP) BP Solar. A DOE Solar America Initiative grant of up to $7.5 million will be awarded to BP Solar for assistance in Phase 1 of the project. GreenProgress reported that BP America Chairman and President Bob Malone stated, "Our shared goal is to lower the cost and increase the supply of clean, renewable energy. BP is working with other companies, with leading research institutions and universities and with government... to make that possible."

The BP Solar program has identified a multi-tiered approach to making solar conversion to electricity a competitive adjunct to the current methods of producing electricity. BP seeks to increase the supply of solar grade silicon, reduce the amount of silicon required in the manufacture of solar panels and to increase the efficiency of those panels. BP also plans to pursue an aggressive program to reduce the costs associated with the manufacturing, distribution and installation of solar conversion equipment.

BP Solar President Lee Edwards is confident that the goals of the program can be fully realized, so that by 2015 solar produced electricity will be marketable in parity with electricity generated from other sources. BP seeks to reduce solar cell mass by 50% while at the same time increasing solar cell efficiency by 25%.

BP receives approving nod from Department of Energy originally appeared on BloggingStocks on Mon, 19 Mar 2007 10:00:00 EST. Please see our terms for use of feeds.

A brief look at railroad freight traffic numbers offers some tell-tale signs as to where our economy is heading. I like to review railroad loading statistics because they can give you a crystal-ball edge in guessing where the big money is leaning in the volatile economic food chain. Basically, right now the numbers are firm year over year, but the freight demographics are what I find interesting.

According to the Association of American Railroads: Total rail freight volume is up 8.9% as compared to 2006, but while container volume is up about 14%, trailer volume is down 6.2%. That indicates that for the year so far, the railroads are probably moving more imported product than domestic product.

While total carload freight (not including inter-modal) was down nearly 1% this week as compared to the same week last year, total ton-miles increased 0.3%, indicating that less freight is moving but it is traveling more miles. That is clearly due to the decreasing inventories of manufactured product, which should bode well for manufacturers in the second and third quarters. That's assuming that consumer spending maintains current levels.

Nonmetallic mineral shipments have increased nearly 20% by volume over last year. This shows strength in base chemicals, base raw materials, glass, concrete, asphalt, industrial construction, and infrastructural improvements. Metallic ore shipments are down over 50%; I believe that shows weakness most especially in steel, tin, aluminum, and copper. Lumber and wood product shipments declined nearly 25% -- no reprieve for the home building market there! Petroleum product shipments are up 9.2% year over year, and coal shipments have increased 3.1%. Here's a tip, it looks like road building and resurfacing will be a big gainer this summer!

Continue reading The economy is firm but changing: Listen to the railroads

The economy is firm but changing: Listen to the railroads originally appeared on BloggingStocks on Sun, 18 Mar 2007 13:40:00 EST. Please see our terms for use of feeds.

One thing about airline stocks: it's usually very good or very bad. Now, according to a cover story from Barron's, the sector may be very good.

Ironically, a big part of the puzzle is the wrenching problems over the years - such as union strife, security threats, rising energy costs, and intense competition from low-cost carriers. It's by going through restructurings - and bankruptcies - that airline companies end up in fairly good shape.

According to Barron's, the best values for shareholders may actually be the legacy carriers: US Airways Group, Inc. (NYSE:LCC), United (UAL Corporation, NASDAQ:UAUA) and American (AMR Corporation, NYSE:AMR). In fact, it looks like 2007 could see the highest profits in the industry's history -- as energy prices fall, travel continues to grow and capacity is stagnant.

There is also the potential for M&A activity. One scenario is a merger between Delta Air Lines, Inc. (OTC:DALRQ) and Northwest Airlines Corporation (OTC:NWACQ). And, as I wrote about in BloggingStocks, there may be a deal with United.

True, if the economy slips into recession, things are likely to turn negative for the airlines. But, so long as this does not happen - and energy prices remain stable - investors may get a pleasant surprise.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Barron's: airline stocks ready for takeoff? originally appeared on BloggingStocks on Mon, 02 Oct 2006 08:10:00 EST. Please see our terms for use of feeds.