Seeking Alpha

Derek A. Barrett's  Instablog

Derek A. Barrett
Send Message
I buy established, good companies with strong management, solid balance sheets, free cash flow, growing earnings, and increasing dividends. This is a long strategy, which buys value situations, combining the fundamentals of Growth at a Reasonable Price, with Dividend Growth Investing. This style... More
My blog:
Fully Informed by Teddi Knight
My book:
Generate Thousands by Dr. Samir Elias
  • New Hyperloop Transportation System Could Lead To Economic Boom 10 Times Bigger Than .COM 2 comments
    Jul 18, 2013 7:59 PM | about stocks: TSLA, MLPL

    Recent press hype over a Twitter post from Tesla (NASDAQ:TSLA) / Space X entrepreneur Elon Musk discusses an upcoming August 12th special announcement.

    Musk will be publishing his alpha specifications for a futuristic transportation system called "Hyperloop", an exciting attempt to solve many of the problems of the decades old and stale transportation system.

    Our entire transportation network has become a broken system. In the US, inter-city travel typically only takes place through the overcrowded, dangerous freeway system, and the very safe, but overcrowded and increasingly unpleasant air transportation system. Some locations, such as the Northeast, do offer rail options, but these are few and far between.

    Many large cities such as New York, Washington DC, and yes, even LA, have public transportation options for intra-city transit. While these increase quality of life, they are extremely expensive to build and maintain.

    The Hyperloop, a system of vacuum tubes, claims costs 1/10 of high speed rail, with mind-boggling speeds up to...4,000 miles per hour, making a trip from New York to LA only take 45 minutes.

    (click to enlarge)

    Source: CNN.com

    Think of the ramifications of such a technology if it were adopted in mass use.

    The global economy is fast running out of ideas for the next big thing. Mobile was great, but that was just another branch of the extremely disruptive Internet. To really achieve another economic boom, something truly disruptive, that can alter the fabric of the way people live, has to take place. Think along the lines of the Railroad, electricity, or modern medicine. These amazing inventions dramatically altered our ways of living and consequently lead to economic booms.

    An idea like this is sure to be a target for naysayers. You really need someone bold with the courage to follow the vision through, win or lose, and that is why Musk is the perfect candidate to bring something like this to fruition.

    Our transportation system has been at a critical stage for over 15 years, where it has exceeded its ability to handle itself. This is why now is the perfect time for something truly disruptive to emerge.

    Maybe as investors, we'll see some specialist companies producing the network, sort of like the way MLPs operate now (NYSEARCA:MLPL) .

    I'm still waiting for the Moller Skycar, Space Elevator, and Cold Fusion. Let's hope this becomes a reality.

    Personally, I will warmly welcome our new magnetic vacuum tube overlords.

    The Moller Skycar, Source: Wikipedia

    (click to enlarge)

    The Space Elevator, Source: Gizmodo Australia

    (click to enlarge)

    Cold Fusion Experiemental Reactor, Source: Exohuman

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: TSLA, MLPL
Back To Derek A. Barrett's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (3)
Track new comments
  • Tom in Texas
    , contributor
    Comments (353) | Send Message
     
    Mach 5+
    Supersonic vacuum tubes.
    18 Jul 2013, 11:17 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Author’s reply » I want to take a ride !
    19 Jul 2013, 12:52 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • Sold $NLY puts, January at 11
    Jul 1, 2014
  • Sold to open $ADM Sept at 41
    Jun 25, 2014
  • No new positions this week, got tons of dry powder coming back online though after buying to close.
    Jun 19, 2014
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.