Hegde fund Hayman Capital Management has taken a stake in General Motors.You're starting to see them take market share back,said Hayman founder and managing partner Kyle Bass.With their new 2014-15 product line,they're gonna increase dividends and buy back stock.Given how cheap the stock is,we think it should be trading in line with Ford.When you look at the enterprise value,it's about 47 billion dolars.
A 100 basis point move takes eight points away from their pension liability.We think that could actually go down to 17 billion dollars.We just think from a catalyst-driven timing perspective,now is the time to invest in GM.
The new GM products will take North American sales back.You have them really working on all cylinders.Motor Trend gives it the New Product of the Year last year.We think it's incredibly cheap and it's gonna move much higher next year,Mr.Bass noted.*
The federal government has announced it has exited its stake in GM,as Mr.Bass predicted it would by the end of the year.The taxpayer lost 10 billion dollars on the bailout of the automaker.*
GM shares closed at 40.90 in Monday trading,up 1.82%.
Tuesday, December 10, 2013
Monday, December 9, 2013
Japan's Recovery Slows;Congress Party Setback
We have enacted industrial competitiveness,said Japanese Prime Minister Shinzo Abe.We have decided to reduce the corporate tax by 2.4%.There is no end to Abenomics.*
At the same time,in April 2014 Japan's consumer tax will rise from 5% to 8%.*
Japan's GDP growth was just 1.1% annualised in Q3,revised down from 1.9%.The two main factors were flat business spending and a smaller contribution from inventories,according to the Cabinet Office.*
The wealth effect that Japan expected is not coming through in either Main Street or real property prices,said Andrew Economos,strategist at JP Morgan Asset Management.You need productivity gains and sales.The sales tax basically squelches consumption.They are basically on the right track,but they need to stop making wrong decisions,Mr.Economos observed.*
India's Nifty Fifty index was up in early Monday trading on the opposition BJP's winning elections in four states,as well as becoming the single largest party in Delhi and humiliating the ruling Congress Party.Congress' Vice President Rahul Gandhi,heir of the Gandhi political dynasty,is seen by some as an example of failed leadership and low confidence even as the BJP's leader,Chief Minister of Gujarat state Narendra Modi scored a big win in the elections.National elections will occur within five months.
We will introspect seriously and take all necessary actions to rectify our mistakes and the way we function,said Congress' President Sonia Gandhi,who is Rahul's mother.*
Through these elections,the people have delivered a message,Rahul Gandhi said.That message has been taken by me and our party,not just with our minds,but in our hearts.The Congress party has the ability to transform itself,to stand up to the expectations of this country,and the Congress Party is going to do that,the presumptive prime ministerial candidate promised.*
The MSCI Asia Pacific index rose 0.71% Monday morning on a strong US jobs report and Chinese data.*
In golf,Thailand's Pornanung Phatlum won the Ladies European Tour's Omega Dubai Ladies Masters on Sunday in the UAE.It was her second career victory on the LET.American Stacy Lewis was second,and Spain's Carlota Ciganda third.
At the same time,in April 2014 Japan's consumer tax will rise from 5% to 8%.*
Japan's GDP growth was just 1.1% annualised in Q3,revised down from 1.9%.The two main factors were flat business spending and a smaller contribution from inventories,according to the Cabinet Office.*
The wealth effect that Japan expected is not coming through in either Main Street or real property prices,said Andrew Economos,strategist at JP Morgan Asset Management.You need productivity gains and sales.The sales tax basically squelches consumption.They are basically on the right track,but they need to stop making wrong decisions,Mr.Economos observed.*
India's Nifty Fifty index was up in early Monday trading on the opposition BJP's winning elections in four states,as well as becoming the single largest party in Delhi and humiliating the ruling Congress Party.Congress' Vice President Rahul Gandhi,heir of the Gandhi political dynasty,is seen by some as an example of failed leadership and low confidence even as the BJP's leader,Chief Minister of Gujarat state Narendra Modi scored a big win in the elections.National elections will occur within five months.
We will introspect seriously and take all necessary actions to rectify our mistakes and the way we function,said Congress' President Sonia Gandhi,who is Rahul's mother.*
Through these elections,the people have delivered a message,Rahul Gandhi said.That message has been taken by me and our party,not just with our minds,but in our hearts.The Congress party has the ability to transform itself,to stand up to the expectations of this country,and the Congress Party is going to do that,the presumptive prime ministerial candidate promised.*
The MSCI Asia Pacific index rose 0.71% Monday morning on a strong US jobs report and Chinese data.*
In golf,Thailand's Pornanung Phatlum won the Ladies European Tour's Omega Dubai Ladies Masters on Sunday in the UAE.It was her second career victory on the LET.American Stacy Lewis was second,and Spain's Carlota Ciganda third.
Friday, December 6, 2013
Commentary:Amazon Drones No Time Soon
Those who think they will see urban delivery drones within a few years will have to think again.The drones are being tested,said Craig Berman,Vice President of Global Communications at Amazon.They're still years away.They can carry objects up to five pounds and deliver them in thirty minutes,but there's a lot of work that needs to be done.
It's not science fiction.We see it as something that's viable,but years down the road.With a ten mile radius,they can travel from a fulfillment center to a customer and back.They are robotic aircraft.We would just input GPS coordinates into autonomous vehicles.
We're excited about it.Over 80% of our items weigh less than five pounds.There's gonna be a lot of experimentation.I don't want to get too far ahead.It's really early in the process.*
For instance,they don't have a see and avoidance system yet.It's not possible in five years.We're interested in this from a known location to a known location,delivering vaccines on a lifesaving basis,said Johnathan Downey,CEO of Airware.We're focused on commercial applications such as agriculture and land management.
They are better suited to remote parts of Africa than dense,built-up environments such as US cities.Whether it's books and whether it's Amazon I'm sceptical-certainly about its being in the next three or four years,the Airware chief confided.
There's no platform to build on top of.Sensors and low level electronics are being invented for a common platform for the various applications.There are no regulations yet,either.*
Commercial drones are currently illegal.The FAA says it will carefully develop regulations for remotely piloted drones within several years,not even mentioning autonomous ones.*
It's a powerful concept,but is at the intersection of the two hardest challenges in the drone world today:reliable sense and avoid technology and regulatory approval for autnomous flights over built-up areas,observed Chris Anderson,3D Robotics CEO.*
In sum,Amazon's announcement was a bit premature from both a legal and technical point of view.A ten year time frame for an urban drone seems more reasonable than five years,given that the concept is still in its infancy and the government isn't in a hurry.
It's not science fiction.We see it as something that's viable,but years down the road.With a ten mile radius,they can travel from a fulfillment center to a customer and back.They are robotic aircraft.We would just input GPS coordinates into autonomous vehicles.
We're excited about it.Over 80% of our items weigh less than five pounds.There's gonna be a lot of experimentation.I don't want to get too far ahead.It's really early in the process.*
For instance,they don't have a see and avoidance system yet.It's not possible in five years.We're interested in this from a known location to a known location,delivering vaccines on a lifesaving basis,said Johnathan Downey,CEO of Airware.We're focused on commercial applications such as agriculture and land management.
They are better suited to remote parts of Africa than dense,built-up environments such as US cities.Whether it's books and whether it's Amazon I'm sceptical-certainly about its being in the next three or four years,the Airware chief confided.
There's no platform to build on top of.Sensors and low level electronics are being invented for a common platform for the various applications.There are no regulations yet,either.*
Commercial drones are currently illegal.The FAA says it will carefully develop regulations for remotely piloted drones within several years,not even mentioning autonomous ones.*
It's a powerful concept,but is at the intersection of the two hardest challenges in the drone world today:reliable sense and avoid technology and regulatory approval for autnomous flights over built-up areas,observed Chris Anderson,3D Robotics CEO.*
In sum,Amazon's announcement was a bit premature from both a legal and technical point of view.A ten year time frame for an urban drone seems more reasonable than five years,given that the concept is still in its infancy and the government isn't in a hurry.
Tuesday, December 3, 2013
Wal-Mart Stores:Focus and Future
Wal-Mart Stores has named Doug McMillon the next CEO of the world's largest retailer,replacing the retiring Mike Duke in January.Arkansas native McMillon,47,had worked his way up from unloading trucks at a warehouse to being head of Wal-Mart's international division as President and CEO of Wal-Mart International.
Mr.McMillon's position is a CEO training program,said analyst David Schisk of Stifel Nicolaus.He's had a taste of different opportunities and challenges.This appointment is very much expected.The CEO of Wal-Mart is essentially a major political job,on top of everything else.*
Wal-Mart needs to have a focus on being the best to their core customer.They don't have to take over the planet for growth's sake.It's a massive company.What we're seeing Wal-Mart and the entire industry focusing on is omnichannel,which is using your mobile phone to help you shop more efficiently.*
I think Wal-Mart is doing a better job of cooperating internationally,rather than competing,adds David Kelly of JP Morgan Asset Management.The working age population is declining in most of the developed world.You've got to be in the emerging markets,and in emerging markets beyond China-in Vietnam and Indonesia.*
Wal-Mart has done just that by acquiring a controlling stake in South African retailer Massmart.Massmart is listed on the Johannesburg Stock Exchange.It has about 290 stores in 14 countries,most of them in South Africa.It also manages 8 wholesale and retail chains,including Game;Dion;Makro;Shield;and CCW.
Founded in 1990,Massmart is Africa's third-largest distributor of consumer goods;the leading retailer of general merchandise,liquor and home improvement equipment and supplies;and the leading wholesaler of basic foods.
South Africa is a fast-growing market,but troubled by a high crime rate and unemployment.*
Wal-Mart Stores Inc(WMT),Massmart Holdings Ltd(MSM:SJ)
Mr.McMillon's position is a CEO training program,said analyst David Schisk of Stifel Nicolaus.He's had a taste of different opportunities and challenges.This appointment is very much expected.The CEO of Wal-Mart is essentially a major political job,on top of everything else.*
Wal-Mart needs to have a focus on being the best to their core customer.They don't have to take over the planet for growth's sake.It's a massive company.What we're seeing Wal-Mart and the entire industry focusing on is omnichannel,which is using your mobile phone to help you shop more efficiently.*
I think Wal-Mart is doing a better job of cooperating internationally,rather than competing,adds David Kelly of JP Morgan Asset Management.The working age population is declining in most of the developed world.You've got to be in the emerging markets,and in emerging markets beyond China-in Vietnam and Indonesia.*
Wal-Mart has done just that by acquiring a controlling stake in South African retailer Massmart.Massmart is listed on the Johannesburg Stock Exchange.It has about 290 stores in 14 countries,most of them in South Africa.It also manages 8 wholesale and retail chains,including Game;Dion;Makro;Shield;and CCW.
Founded in 1990,Massmart is Africa's third-largest distributor of consumer goods;the leading retailer of general merchandise,liquor and home improvement equipment and supplies;and the leading wholesaler of basic foods.
South Africa is a fast-growing market,but troubled by a high crime rate and unemployment.*
Wal-Mart Stores Inc(WMT),Massmart Holdings Ltd(MSM:SJ)
Monday, December 2, 2013
China Manufacturing Grows;McIlroy Thwarts Scott
Both government and private purchasing manager surveys show Chinese manufacturers did somewhat better than expected in November.The official PMI reached 51.4,versus a median estimate of 51.1.A number above 50 signifies growth in the sector.
The private HSBC/Markit Economics PMI came in at 50.8,which is more than all thirteen analysts surveyed predicted.
This positive result was tempered by the fact that large companies drove the uptick;small ones didn't do so well.The HSBC survey also revealed a contraction in employment and slower restocking.A Bloomberg News survey of economists in November showed that most of them felt China's growth would slow to 7.5% in 2014,which meets the governments's goal,but would be down from 7.6% this year.*
China announced that it would allow the restart of initial public offerings.This drove the Shanghai Composite Index down,for fear the that the IPOs would siphon funds from the rest of the market.Asian stocks were mixed overall in early Monday trading,with the Nikkei down 0.4%,while the Hang Seng rose 0.44%.*
Northern Ireland's Rory McIlroy prevented Australian Adam Scott from sweeping all three Australian majors on Sunday as he took the Emirates Australian Open with his eighteen under par 66.It was the former World Number One's only win of the 2013 season;he was ranked sixth this year behind leader Tiger Woods.Scott had won the Australian PGA Championship and the Australian Masters the past few weeks;but a lackluster fourth round opened the door to McIlroy,whose game has been sharpening recently,after a mediocre season in which he had scored six top ten finishes,but no victories.*
I wanted to get a win by the end of the season,McIlroy said,but more satisfying was to take one the best golfers in the world down the stretch and come out on top.I've been building confidence for a few weeks now.I worked hard.I put the hours of practice in,and I feel that I've really found something.*
Scott had become the first Australian to ever win the victor's green jacket at the US Masters in April,making him a national hero.*
The private HSBC/Markit Economics PMI came in at 50.8,which is more than all thirteen analysts surveyed predicted.
This positive result was tempered by the fact that large companies drove the uptick;small ones didn't do so well.The HSBC survey also revealed a contraction in employment and slower restocking.A Bloomberg News survey of economists in November showed that most of them felt China's growth would slow to 7.5% in 2014,which meets the governments's goal,but would be down from 7.6% this year.*
China announced that it would allow the restart of initial public offerings.This drove the Shanghai Composite Index down,for fear the that the IPOs would siphon funds from the rest of the market.Asian stocks were mixed overall in early Monday trading,with the Nikkei down 0.4%,while the Hang Seng rose 0.44%.*
Northern Ireland's Rory McIlroy prevented Australian Adam Scott from sweeping all three Australian majors on Sunday as he took the Emirates Australian Open with his eighteen under par 66.It was the former World Number One's only win of the 2013 season;he was ranked sixth this year behind leader Tiger Woods.Scott had won the Australian PGA Championship and the Australian Masters the past few weeks;but a lackluster fourth round opened the door to McIlroy,whose game has been sharpening recently,after a mediocre season in which he had scored six top ten finishes,but no victories.*
I wanted to get a win by the end of the season,McIlroy said,but more satisfying was to take one the best golfers in the world down the stretch and come out on top.I've been building confidence for a few weeks now.I worked hard.I put the hours of practice in,and I feel that I've really found something.*
Scott had become the first Australian to ever win the victor's green jacket at the US Masters in April,making him a national hero.*
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