Time to Buy One of the Best Peak Oil Investments
Tom Konrad CFA The Euro crisis rolls out a bargain in the stock of a leading e-bike manufacturer. A little over a year ago, I concluded a 27 part series looking into non-oil stocks that might benefit from rising oil prices by picking what I thought were the four best stocks I had found in the process. I had not yet bought any of the stocks picked because, as I said at the time, I personally do not...
Manufacturers Going All Out for Self-driving Car Tech
There is a clutch of self-driving cars and cars with autonomous driving features on the market today. Drivers just cannot seem to get enough of them. Apparently, the idea of zooming down the highway with little to no responsibility holds considerable appeal. Then again, maybe it is the novelty of the idea that will eventually give way to the next fad.
In August 2018, Cox Automotive revealed the results of a survey that found fewer Americans are embracing self-driving technology than previously thought. A surprising 49% of respondents said they would NEVER own a fully-autonomous car. This is up from 30% naysayers two years ago. Views...
The Best Peak Oil Investments: Three Mass Transit Operators
Tom Konrad, CFA Government budgets are putting pressure on mass transit operators, but the best public companies are likely to benefit from the trend. Three recent Economist articles led me to question my assumption that rising oil prices should be good for mass transit operators. In the August 19th edition, there was an article about mass transit service cuts in Atlanta, as well as one about the likelihood of rising rail fares in Britain. In crisis, there is also opportunity. Reading beyond the gloomy headline of the Atlanta article, it becomes clear that the...
Ameresco, New Flyer, PFB: Q1 Efficiency Earnings Highlights
Tom Konrad CFA Performance contractor Ameresco, Inc. (NYSE:AMRC) reported earnings on May 9th. Revenues were below analyst expectations, but Chairman, CEO, and President George Sakellaris put this down to timing issues, and stuck by his full year guidance. Strong growth in the firm’s backlog and awarded project’s seem to back up this relatively optimistic view. From the earnings call transcript e are very confident about the improving market conditions in few of our regions, as well as continued growth in our all other offerings. These are expected to be the growth drivers for the near-term. We are also...
A Green Peak Oil Company Expanding in North America: Stagecoach Group
Tom Konrad CFA What’s the budget-conscious way to travel in the US? If you buy in advance, flying is still reasonably priced, but increased security and wait times mean that it’s quicker to drive for shorter trips. With current high gas prices, driving is increasingly expensive. Except on a few routes, Amtrak is slow, has very limited service, and costs a bundle. In our new peak oil world of $4 gas and, more and more people are opting for bus travel. The young like it: My girlfriend’s daughter travels by bus almost exclusively, even though she owns a car....
New Flyer: An Offer You Can’t Refuse
Tom Konrad CFA A couple readers have asked me if they should accept the New Flyer (NFI-UN.TO/NFYIF.PK) Rights offering to exchange their C$5.53 principal 14% subordinated notes for nine shares of New Flyer common stock. The answer is most emphatically YES. When I last wrote about New Flyer, I knew that they were planning to convert from their unusual stapled security structure to a more conventional share structure, but I was not certain how they could entice IDS holders to go along with the swap. Now, it's clear. The New Flyer IDS is the...
Aerovironment’s New Farm Worker
by Debra Fiakas CFA Unmanned aerial vehicles (UAVs) had their starting point in military exercises, carrying surveillance cameras and even bombs to sensitive sites. Drones as we have come to call them have also zoomed across the horizons of adventuresome consumers, who see sport and entertainment possibilities. However, drones offer time and cost savings, quality and accuracy in data gathering and safety to a host of scientists, engineers and infrastructure operators. According to industry research firm Markets and Markets, the unmanned aerial market is estimated to be $13.2 billion in the current year and has the...
List of Alternative Transportation Stocks
Alternative Transportation Stocks are publicly traded companies that offer transportation options that use less fuel per passenger-mile or freight-mile than traditional options. Includes mass transit (both rail and bus), bicycles, and two wheel vehicles.
A. P. Moller - Maersk Group (MAERSK-B.CO)
Accell Group (ACCEL.AS)
Blue Bird Corporation (BLBD)
Bombardier Inc (BDRBF)
Construcciones y Auxiliar de Ferrocarriles (0MK5.L)
CSR Zhuzhou Electric Locomotive (ZHUZF)
Canadian National Railway Company (CNI)
Canadian Pacific Railway Limited (CP)
CSX Corporation (CSX)
Cubic Corporation (CUB)
Dorel Industries (DIIBF)
Firstgroup, PLC (FGP.L)
Giant Manufacturing (9921.TW)
Grande West Transportation Group Inc. (BUS.V)
Great Lakes Dredge and Dock (GLDD)
Greenbrier (GBX)
L. B. Foster (FSTR)
Merida Industry Co. Ltd. (9914.TW)
National Express Group (NEX.L)
New Flyer Industries (NFYEF, NFI.TO)
Norfolk...
New Flyer Consolidates Leading Position in Transit Bus and Parts Markets
Tom Konrad CFA On June 21st, leading North American heavy-duty transit bus manufacturer New Flyer Industries (TSX:NFI, OTC:NFYEF) announced the acquisition of its third largest competitor, North American Bus Industries from private equity firm Cerberus Capital. The following Monday, New Flyer management held a call to discuss the acquisition with analysts. Here are the highlights. Cost and Financing: The C$84 million cost to New Flyer consists almost entirely of the assumption and discharge of NABI’s existing debt. This will be funded with C$64 million by issuing to the world’s second largest bus maker Marcopolo S.A. for C$10.50 a...
The Best Peak Oil Investments: Pure-Play Mass Transit Suppliers
Tom Konrad CFA I'm attempting to bring this series on peak oil stocks to a conclusion in which I can choose five stocks that should benefit from rising oil prices. One sector I feel should be represented is suppliers to mass transit companies, but I only looked at the percentage of revenues coming from mass transit and rail when I brought you my list of nine mass transit stocks. From that list, the following companies get substantially all their revenues from mass transit, passenger rail, or rail freight: New Flyer Industries (NFYIF.PK/NFI-UN.TO), is the largest manufacturer...
When Isn’t a $68M Civil Action Material?
Tom Konrad CFA David and Goliath (Photo credit: Wikipedia) Last week, I investigated the Goliath vs. David civil action in which Norfolk Southern Corp. (NYSE:NSC) and Wheeling & Lake Erie Railroad (WLE) are attempting to prevent Power REIT (NYSE:PW) from foreclosing on the lease of the 112 miles of track owned by Power REIT and operated by WLE under a sublease with NSC. As in Biblical times, Power REIT, in its role as David, looks likely to surprise the market with a legal victory. I calculated that any victory could lead to payments...
The New Golden Age of Railroads
John Petersen Did you know that both Warren Buffett and Bill Gates have billion dollar investments in railroads? If so, did you ever wonder why? For Mr. Buffett, it's an indirect investment through Berkshire Hathaway, which bought the Burlington Northern Santa Fe railroad outright in February of last year. For Mr. Gates, it's a direct 10.04% stake in Canadian National Railway. The reason is simple. Railroads are the cheapest, cleanest and most energy efficient ground transportation networks in the world, which effectively guarantees them an increasingly important role as the world comes to grips with...
Where Electric Vehicles Make Sense
Tom Konrad CFA Electric Transit Buses Coming to North America Quayside electric bus in Newcastle. Photo credit: LHOON On June first, New Flyer Industries (TSX:NFI, OTC:NFYEF) unveiled its first all-electric bus prototype. New Flyer is far from the first manufacturer to launch an electric bus. The first deployment of electric buses on a commercial route was at the end of 2010 in Seoul, using buses developed by Hyundai and Hankuk Fiber. Wikipedia lists twenty manufacturers of electric buses worldwide. Even in North America, Balqon Corporation (OTC:BLQN), a...
Buying Opportunity at Renewable Energy REIT, Courtesy of Disgruntled Shareholder
Tom Konrad CFA Power REIT (AMEX:PW) aims to be the first renewable energy infrastructure Real Estate Investment Trust (REIT). The Renewable Energy REIT Renewable energy advocates have been calling for a change in the tax laws to allow renewable energy within the REIT structure. A REIT is allowed to pass profits directly through to investors. These profits are not subject to double-taxation like most corporate profits. Owning shares of a renewable REIT would be much like owning a slice of a wind or solar farm. This would open up the renewable energy investment opportunity to everyone, not just...
The Best Peak Oil Investments: Shimano
Tom Konrad CFA I missed Shimano (SHMDF.PK) in my recent list of bicycle and scooter stocks, but in many ways, Shimano is the best of the lot. Shimano Inc. manufactures bicycle components and fishing and rowing gear, with the bike segment accounting for about four-fifths of sales, but I had not realized that they were public until I received a note from a reader in response to my recent article on bike and moped stocks. In that article, I noted that, while bike sales rose in response to rising oil prices in 2008, bicycle repairs surged...
