Monday, April 22, 2013

Oddly Relevant Apr-22-2013


Why aren’t younger Americans driving anymore?  Between 2001 and 2009, the average yearly number of miles driven by 16- to 34-year-olds dropped a staggering 23 percent. Here are the hypotheses: (1) cost of driving—not just fuel, but also insurance, student debt, healthcare cost, etc; (2) recession and jobs (or lack there of), (3) it’s harder to get a license, (4) More younger people are living in transit-oriented areas, (5) convenience offered by internet. [Note: Ergo, it’s hard to be too bullish on CST along with higher fuel efficiency]…Source: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/04/22/why-arent-younger-americans-driving-anymore/

Ackman Warns of REIT Crackdown With Rising Conversions: “If you push the envelope too much, there will be a crackdown on the REIT industry”…[Note: not sure what to make of it—is there a solid short here?]…Source: http://www.bloomberg.com/news/2013-04-11/ackman-warns-of-reit-crackdown-with-rising-conversions.html

As Shareholder Fights Heat Up, Activists Aim at Bigger Targets: “So far this year, according to the data provider FactSet SharkRepellent, 66% of contests have been successful for the activists. This is up from 51% last year, though we are still early in the season. With activism on the rise, don’t be surprised to see additional SEC hurdles as well as more restrictive requirements for funds as well…Source: http://dealbook.nytimes.com/2013/04/16/as-shareholder-fights-heat-up-activists-aim-at-bigger-targets/

Russia Skips Hybrids in Push for Cars Using Natural Gas: “The Russian government and Gazprom, though, are just now pressing aggressively for a switch to natural gas at home, where prices are about tied with the United States as the lowest in the world.” [Note: WPRT]…Source: http://www.nytimes.com/2013/04/12/business/energy-environment/russia-skips-hybrids-in-push-for-natural-gas-cars.html?pagewanted=all

OMG: This Stock Has 40% Upside: literally. OM Group (OMG) sold its low-margin cobalt metal business to a consortium of mining companies for $325 million. Bigger focus on higher margin business.  Firm trades at 5.2x EV/EBITDA and is sub 1-bn market cap. [Note: One has to think that they realized what that meant when they decided to use the ticker, but who knows.]…Source: http://online.barrons.com/article/SB50001424052748703318404578426642909104804.html?mod=BOL_da_sa#articleTabs_article%3D1



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