Well that is the problem with tree hugging liberals. They deem every form of transport evil and try to shut it down and then complain of energy shortages. These are the types of morons that believe it is possible to pick up a turd by the clean end.
Seems to me the playbook is getting old.
We are working on reducing inventory - how many years does it take to reduce it to a manageable level.
We are restructuring - into the second year of that.
Two huge dividend increases to prop up the stock price
Share buybacks to boost the stock price.
Accounting tricks to boost EPS - unsustainable.
I think they are running out of tricks and the hope was the tricks will keep them flush with cash until their market recovers. I think they will miss this by over a year.
They will not raise the dividend since it will not be sustainable due to falling ales. They can tout taking market share all they want but the pie is getting much smaller.
I don't think investors want to wait another 24 months for this to recover and they have to be asking themselves if CAT has cut so much that they will not have any advantage to exploit the eventual recovery.
KMI is positioned to make huge profits due to the pipelines they own and what they added during the oil price drop in the last 18 months. Warren Buffet is shipping 100000 carloads of oil for one reason - politics. Warren contributes to the DNC for which he is rewarded by politicians stopping the keystone pipeline leaving Warren as the only means of transporting oil in that region. Every community that has been harmed by derailments should be suing the government since they prevented a safer means of transport. Ten years ago the US had no natural gas reserves. We now have 130 years of reserves on top of that natural gas has become a global economic weapon. Recently Lithuania built a natural gas import facility on the Baltic. Seems unnecessary since they can get all the gas they want from Russia. Problem with that is it also comes with Russian politics (think Ukraine). KMI could be a big player here since since to supply Europe and reduce Russian influence we could export natural gas. The only US company that has a natural gas export permit is LNG with their facilities in Louisiana. Why isn't there more? Dominion Energy applied for a permit but is has yet to be approved which would allow us to start exporting from the Atlantic coast. In each of these cases a pipeline will be needed and KMI would do that easily. So pipelines could easily become a global political / economic with KMI as the infrastructure behind all of it. If the American people knew how politicians are stopping this conomic goom and political muscle they would be outraged. Investors can't drive this change the public must change the political environment to do this.
let me spell this out for you. Anyone that understands gas and oil distribution systems knows pipelines and of those who invest will buy KMI. Where the discovery part comes in is few people understand value chains if they did they would understand that pipelines are a constraint on the system implying rising fees to deliver leading to higher revenues. If more people understood about KMI and pipelines they would be raising hell about Warren Buffets oil hauling trains jumping the tracks setting fires exploding and forcing evacuations. They would then ask why Warren is transporting 100000 cars per year when a pipeline can handle this on a much safer route not prone to many of the issues with train transport. There is a tremendous number of people that do not know pipelines. If they did KMIs price would be much higher and pipelines would not be under attack while Warren's trains are playing Russian Roulette with communities along their routes.
Not disagreeing with your points however the 60 Million cars only represent approximately one tenth of one percent of the connected devices expected by 2020. Sierra must be in all other business segments as well to be a driving force in the market. In 2011 they made a big mistake in having 25% of their revenue coming from Barnes & Noble (Nook). The stock took a nosedive there. I think they have learned their lesson and won't repeat that. They have devices in public lighting, smart meters, first responders network... At their present market share connected cars will only provide about 71 cents per share in earnings. Much better than they are doing today but once the hype is over that will only yield a share price of $15 per share. The real revenue is in establishing a presence in the other segments to achieve 34% market share in the 50 Billion device market and not the 60 Million device market.
IMHO fund managers will continue to push the price until it is clearly understood that the world will continue to need oil and gas. Once that is understood the next logical question will be how does this fuel get to the market. Somewhere along that timeline KMI and pipelines will be discovered. Until then it will be volatility, emotions and big money games.
$20 is still a barrier and I expect the volatility to straddle it over the next few weeks. IMHO the market is starting to find it's direction. The connected car is great for hype but it is not a significant part of the market share when you consider that only 60 Million cars are produced annually. Compare that with Jeff Immelt's forecast of 50 Billion connected devices by 2020 (42 months from now). The bulk of the business will be driven by big data (analytics, public safety, government snooping, insurance ...). Personally I am keeping an eye on Hortonworks and Cloudera (Hadoop for Big Data). When these guys break out the monitization of data will be real and no one will be able to provide connectivity fast enough. At that point Sierra will either take off or will be acquired. Either scenario will drive the stock price over $100. Time to be patient, buy on the dips, read the conference calls and make your 2020 prediction for Sierra.
Nope the UAW did not design the cars. They designed the Job Bank where the industry paid $40 Billion for people to go sit in malls. That bled the industry dry to the point of bankruptcy.
Verizon needs to do to the CWA what Caterpillar did to the UAW in the mid 90's. The UAW is no longer anything in Peoria Illinois other that an expense to the workers. Once the UAW was rendered ineffective, Barrons wrote an article in 1998 stating that if Detroit failed to do what Caterpillar did the Auto Industry would go bankrupt. Fast forward to 2008 and Detroit still had their parasites and went bankrupt. Time for Verizon to follow the Caterpillar model. I would not be surprised if a number of Verizon executives have made their way to Peoria for training.
Exactly why are parasitic unions needed except to fill the coffers of the democrat party and use mob tactics to force companies to keep lazy unqualified workers?
Let te go to CA and compete with the illegals for lettuce picking jobs. So what if they stare.
Funny thing is i hear all this crying about decent wages and fair wages but nowhere do I hear pay us what we're worth. What's wrong can'ttake that much of a pay cut so resort to extortion?
If you have to use mob tatics and extortion for a pay check you really need to reevaluate what you are worth.
I can‘t wait for the day that union members are fighting illegals for seasonal lettuce picking jobs. That will be real Karma.