If cars are driverless who needs Uber? Ubers entire function is to break regulations and stick the cost of cars and operations and liability on the drivers. Without drivers uber needs billions of dollars worth of cars and can not blame drivers for liabilities.
There are two ways this can go -if medallions are not required to Ehail uber makes money for 2 years by screwing drivers -If medalions ARE required for Ehail then uber must rent them like any other taxi service with no advantage. The idea that uber will be able to start fleets of self drive cabs is insane.
I am stunned at the political cooperation behind self driving vehicles. I was a development engineer in automotive. We knew the value long ago but have been too afraid of lawsuits to offer product. Governments offering licence to to test systems on public streets is such a breakthrough you can not comprehend it's significance -it is not a question of if but when. The media trivializes self driving cars as a way to be able to look at your phone instead of wasting focus on driving. The true value of self driving tech is throughput of urban road infrastructure and it's a trillion dollar improvement. Based on capabilities when I retired and the current status I predict that large numbers of cars will include the ability to self drive on the highway within three years. Not having self driving capability will limit the lanes you are allowed to drive in within 7 years. Completely driverless cars will appear in the next 5 years and dominate taxis within 10.
Uber drivers signing 5 year leases are COMPLETELY SCREWED!
The entire company is based on the premise that it is a 'technology' not just breaking all the laws that regulate the taxi industry.
I think the big Uber question is how much they are paying for lawyers, lobbyists, and goons intimidating rival drivers. There are indications that many Uber drivers are not making enough to survive after they are recruited and saddled with car payments. The reason Uber has such a high valuation is the assumption that the drivers get replaced by autonomous cars and drown in debt while Uber goes from collecting 20% to 100% of fares. The clear losers in Uber's plan are the drivers and the local governments. Why should the cities abandon their regulation just so Uber can make all the money that would have gone to the city?
Big selling volume at the open looks like the shorts coming back after covering for the long weekend. I wonder if they even know about current lawsuits.
This makes perfect sense. The government sold licenses to operate an exclusive business for boatloads of money then changed the rules to allow anyone to operate without the license. It is sad to see the lawsuit threaten the government rather than Uber but it makes the case so clear cut. I don't think anyone expects the government to pay damages but they do expect them to enforce the rights they sold.
Management knows but they would not insider trade. Outside lawyers and clerks have less morals. I don't doubt that earnings are good, just that insiders are acting on it.
One more thought is that I have been hearing about private equity pushing into BDCs and having no problem finding billions for the funds.
That would be the normal trajectory but I would prefer that they buyback shares while the price is so low. The yield is so high that it is obvious that the market does not value it as a positive. Over 7% yield actually scares investors away. I am telling IR that I want to see a significant share repurchase which will lead to EPS growth that the market can not ignore.
1 Insiders might know about earnings (unlikely)
2 insiders might know about a buyback -a bit more likely as it involves lawyers and filings
3 Or it could just be what I have said for a while now -shortsellers are the only ones selling at these low prices so whenever they think they will cover a little -like before a long weekend -the price spikes and we have a mini short squeeze.
Today the short sellers began to get the message that the weak hands are gone. Despite the down market and low bid there were no sellers! Volume just dryed up! The smart shorts realized the game was up so they tried to cover. The stupid shorts like Donkey dork jumped in to take their place. Now he spends his day posting lies.
Clearly they have the ability to buy back shares and at today's depressed price that is a better use of cash. I figure they will announce a major buyback program -tens of millions$ multiple quarter length. If the price stays low they cut the share count big time. If the price jumps before they can buy, they will raise the dividend as required by law for BDC.
The company is pretty conservative so they are more likely to put in a floor of $11-12. Most likely not $13 unless they get lots of shares off the market -raising book value.
What is much more likely is that the buyback puts in a floor and the market catches on and bids the shares to a more reasonable yield.
If the shorts keep selling cheap and the company buys the earnings growth will accelerate. If the shorts cover and go away the dividend will be rased to 90% of earnings as required by law. Either way TAXI is a BUY!
Taxi making record profit and now they can buy back shares cheap thanks to stupid short sellers! TAXI used to be a cash machine -now it is a growth machine too!
I figured there would be a short squeeze when TAXI reported much better than expected earnings. I figured the shorts would cover. What I didn't expect was smart shorts covering and buying from DUMB shorts!
The only reason they are not raising the dividend is that buybacks are better at todays depressed price. When price gets back in the teens they can hike the dividend to 30+ cents/quarter.
It should (must) be on edgar within 3 trading days.
For now you can get the numbers from businesswire or DJ stories though your brokers site.
Go to your brokerage account and look at news for TAXI. There is a business wire story titled "Medallion Financial Corp. Reports 2014 Fourth Quarter and Record Full Year Results
9:03 AM ET 2/17/15 | BusinessWire"
At the bottom are the full financials and there is a link to the data direct.
I have it from Etrade but it doesn't paste and the link is secure.
I tried pasting it in a post but it doesn't fit. It's on the bottom of the newswire story. It's $0.33
I have no idea what 0.10 is
I made the change myself and confirmed the laws with my broker. The law is without question, only enforcement...
I am still looking but I think the $0.10 excludes medallion bank among other things. TAXI is a BDC. Medalion bank is a wholly owned subsidiary, an investment, so the results must be listed as 'investment returns'.