Alexander MacLennan

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  • Powerball Investing: Fannie and Freddie

    By Alexander MacLennan - August 16, 2013 | Tickers: AIG, FNMA, FMCC

    Admit it, you’ve dreamed of winning the lottery at some point in your life. Everyone, or at least everyone should, know that the statistical odds are against lottery players since the lottery itself wants to see a profit. But for the 174.999999 million out of 175 million of us who don’t have that winning powerball ticket, there are alternative ways to play a market of chance where more »

  • DOJ Surprise Part 1: Effects on Large Carriers

    By Alexander MacLennan - August 16, 2013 | Tickers: DAL, LUV, UAL

    The biggest news in the airline industry right now is the Department of Justice’s move to block the proposed merger deal between US Airways and American Airlines parent company AMR. While most of the discussion has surrounded what the effects on US Airways and American will be, this article focuses on the effects on the other large industry players. After the news broke, shares of all carriers were down more »

  • Three Lawsuit Investments

    By Alexander MacLennan - August 16, 2013 | Tickers: BAC, FNMA, FMCC

    Lawsuits are part of doing business, and for some companies they are the business. Whether your company’s business model is built on filing lawsuits, your company is the target of lawsuits, or game-changing lawsuits are being filed by third parties, legal action is a key part of many businesses. Here we will look at three financially-based companies with pending lawsuits that could drastically alter shareholder returns.

    A mortgage mess more »

  • A Speculative Investment In Bank Of America

    By Alexander MacLennan - August 16, 2013 | Tickers: BAC, BAC-BW, BAC-AW

    At its height, Bank of America (NYSE: BAC) traded for over $50 per share and rewarded its investors with a healthy dividend. But one financial crisis later, BofA trades for under $15 per share and has slashed its dividend to a penny per quarter. Investors betting on the banking giant’s comeback could buy shares of the bank, or they could go with the more speculative TARP warrants that are more »

  • The New and Improved Business Class

    By Alexander MacLennan - August 15, 2013 | Tickers: DAL, JBLU, UAL

    Business class used to be defined as larger seats, better service, and first boarding onto the plane. But changes are coming to how airlines operate business class and travelers are taking these changes lying down. Literally. Airlines are installing lie-flat business class seats in hopes of attracting the more profitable business traveler on many international and even some domestic routes. Let’s take a look at the approaches of various more »

  • After The Bounce: How Will These Canadian Carriers React After Earnings Rallies?

    By Alexander MacLennan - August 13, 2013 | Tickers: AC.B, UAL, WJA

    All prices are given in Canadian Dollars (CAD).

    Airlines in the U.S. have enjoyed strong share price rallies over the past year, with some carriers more than doubling. Major Canadian carriers joined in this rally, but pulled back earlier this year on the back of capacity concerns and a profit warning by Canada’s largest airline. After stabilizing, shares of Air Canada (TSX: AC.B) and WestJet Airlines (TSX: WJAmore »)

  • Two Big Factors Fueling Airline Shares

    By Alexander MacLennan - August 13, 2013 | Tickers: AAMRQ.PK, DAL, UAL, LCC

    Airlines are not often thought of as a good way to make money; in fact, they have quite a reputation for doing just the opposite. But holders of airline shares have been richly rewarded if they bought at almost any point over the last year. With the airline industry being one with a long history of bankruptcies and failures, two major factors are working together to drive airline shares now more »

  • Is The Internet The New Way To Sell Cars?

    By Alexander MacLennan - August 13, 2013 | Tickers: BAMXF, TSLA, TM

    The Internet has revolutionized the way business is conducted. Once-mighty retailers are looking at questionable futures after Amazon eliminated the cost of the brick and mortar store, while Blockbuster was forced into bankruptcy after having its market taken over by Netflix. But car sales are still primarily done in the way they have been for decades, where customers haggle over prices on large inventory dealership lots. One automaker is beginning more »

  • How Much EV Competition Does Tesla Have?

    By Alexander MacLennan - August 12, 2013 | Tickers: BAMXF, GM, TSLA

    It’s no secret that Tesla Motors (NASDAQ: TSLA) has had quite a run since spring (and yet another run after earnings). Shares have more than quadrupled off their lows as production numbers beat expectations and the automaker’s Model S sedan remained popular. Much of this popularity stems from the sheer performance of the car, not necessarily the fact that it’s electric. Through this, Tesla has expanded the more »

  • A Look At Former Crown Corporations

    By Alexander MacLennan - August 5, 2013 | Tickers: AC.B, CNI, CNR, CP, CP

    As a way to promote goods and services that is beneficial to society as a whole, governments often establish entities that have direct interaction with consumers. One of these such entities is the Crown Corporation, which is officially owned by the Canadian government but enjoys a greater latitude in making its own decisions than a governmental department. In this article, we will take a look at two former Canadian Crown more »

  • Interesting Short Behavior Around This Automaker

    By Alexander MacLennan - July 15, 2013 | Tickers: NFLX, TSLA, VLKAY

    Tesla Motors (NASDAQ: TSLA) wasn’t supposed to post a profit or beat delivery expectations. Then it reported that it did both. Over the next several days, a wave of buying caused by both bullish investors and covering shorts sent the stock from the $50 range well into the $80 range before the share price eventually topped $100 a share in late May. Through this, many shorts were squeezed out more »

  • Three Ways to Change the Vote Tally

    By Alexander MacLennan - July 15, 2013 | Tickers: AC.A, AC.B, BBD.A, BBD.B, RBS

    Many times when investors buy shares of a company, they do so on the idea of one share equaling one vote. The idea of shareholders controlling the election of directors is one of the checks shareholders get on their companies and one of the powers they receive for their ownership. While most average investors will never play a major role in the affairs of their corporate investments, many still take more »

  • How to Drive an Exotic Car for a Day

    By Alexander MacLennan - July 15, 2013 | Tickers: AUDVF, CAR, HTZ, VLKAY

    With over 400 horsepower and a zero to sixty time under four seconds, the Audi (NASDAQOTH: AUDVF) R8 is one amazing car. Of course buyers should expect these kinds of performance stats out of a car starting at $114,900. What Audi fans may not expect is that they could soon rent one of these Audi supercars at a Hertz (NYSE: HTZ) location. Yes, a rental car company is ready more »

  • Airlines Are Bidding for Shareholders With Dividends

    By Alexander MacLennan - July 15, 2013 | Tickers: ALK, DAL, LUV

    The airline industry is known as one of high costs. Whether it’s in purchasing aircraft, leasing aircraft, paying a large workforce, or buying fuel that changes in price on a daily basis, the costs of running an airline are quite high. So it has been no surprise that airlines have not ascended to be dividend kings, dividend aristocrats, or even dividend commoners. However the airline industry today is stronger more »

  • A Picture of an Insurer in 2015

    By Alexander MacLennan - July 12, 2013 | Tickers: AIG, MET, PRU

    There are few companies that have attracted the same amount of press as American International Group (NYSE: AIG). After a series of bets went bad, AIG received and later repaid a massive federal loan package totaling well over $100 billion. But the new, independent AIG is leaner than it was before, having sold off business units to raise funds to repay the loan. Still, with estimates from analysts and industry more »

  • Of the Many Ways to Travel, This Is One of the Cheapest

    By Alexander MacLennan - July 12, 2013 | Tickers: F, POAHF, TSLA

    Much has been made about the idea that people would refuse to buy cars made by Tesla Motors (NASDAQ: TSLA) because of concerns about range anxiety on roadtrips. Setting aside the fact that most people with enough money to purchase a Tesla Model S also own at least one more car and are likely to fly instead, the Model S may become one of the cheapest ways to travel across more »

  • Two Different Financial Situations for Two European Banks

    By Alexander MacLennan - July 12, 2013 | Tickers: LYG-A, LYG, NBG, NBG-A

    Back in 2009, the largest American banks could be had for share prices in the low single-digit range as fears of financial collapse spread around Wall Street. But those share prices recovered (or in the case of Citigroup underwent a reverse split) and now sit in at least the low double-digit range. However, while both of these two foreign banks still trade for under $4 per share, they have very more »

  • Major Airlines Are Launching A Regional Jet Battle

    By Alexander MacLennan - July 11, 2013 | Tickers: AAMRQ.PK, DAL, LCC

    The competition between the major airlines in the United States is well known and various tactics employed by each have been a contributing factor in more than a fair share of airline bankruptcies. But with the consolidation in the airline industry that has occurred over the past few years, there are fewer, but stronger, competitors in the major airline space. Now with regional flights being a critical part of feeder more »

  • In Search of a Reasonable Airline P/E Ratio

    By Alexander MacLennan - July 11, 2013 | Tickers: DAL, UAL, LCC

    Price to earnings ratios are one of many measures for a company’s value. Simply put, it shows how many times earnings the market is willing to pay for a stock. However a reasonable P/E ratio varies by company and by industry. A rapidly growing start-up can trade at a four-digit P/E ratio for a period of time while a company in a low growth or shrinking space more »

  • Disappointment And Delay: How Can This Manufacturer Turn Things Around?

    By Alexander MacLennan - July 11, 2013 | Tickers: BBD.A, BBD.B, ERJ, SI

    It was a rough end of June for Canadian manufacturer Bombardier (TSX: BBD.A) (TSX: BBD.B). With high hopes resting on its new C Series airliner, the plane received no new orders at the Paris Air Show and the company decided to delay the inaugural flight of the C Series until the end of July. Shares of Bombardier have reflected this disappointment and have fallen well off their peak more »

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