Navistar International CorporationNYSE
Better Execution At Navistar, But Cycle Is Down
Alpha Gen Capital
Alpha Gen Capital
Mon, Nov. 14, 12:20 PM
- A lawsuit on the behalf of truck buyers in Europe is being planned by litigation funding firm Benthem Europe.
- Reuters reports that the damages claim in the legal action could be €100B as truck makers are pressed for running a 14-year price-fixing cartel.
- By Bentham's tabulations, 10M trucks were sold in Europe with an extra €10.5K added to the price tag due to the collusion.
- Truck makers potentially impacted include PACCAR (NASDAQ:PCAR), Navistar (NYSE:NAV), Daimler (OTCPK:DDAIF), Volvo (OTCPK:VOLVY), Volskwagen (OTCPK:VLKAY), Supreme Industries (NYSEMKT:STS) and CNH Industrial (NYSE:CNHI).
Wed, Nov. 9, 3:35 PM
- Investors are betting that some big U.S. manufacturers such as Caterpillar (CAT +7.7%) could benefit from possible changes in energy, climate and tax policies in the Trump administration.
- CAT is "looking forward to building those bridges," says VP for global government and corporate affairs Kathryn Dickey Karol, adding that the company is excited about Trump’s calls for improving the U.S. transportation network.
- CAT says it will continue to push for adoption of the Trans-Pacific Partnership during the remaining days of the Obama administration; Martin Richenhagen, Chairman and CEO of farm equipment maker Agco (AGCO +0.9%), says he is concerned about Trump’s repeated support for trade protectionism during the campaign.
- The potential for federal spending boosted the likes of Fluor (FLR +10.1%), Aecom (ACM +12.6%), Jacobs Engineering (JEC +9.8%), Manitowoc (MTW +14.2%), Terex (TEX +14.8%), Vulcan Materials (VMC +9.8%) and Martin Marietta Materials (MLM +11.5%).
- Shares in Deere (DE +1.4%), Paccar (PCAR +4.5%) and Navistar (NAV +7.2%) also are higher.
Sat, Oct. 29, 10:42 AM
- The trucking industry is anxiously waiting for the release of key heavy-duty truck order releases next week as it assesses demand for 2017.
- Overcapacity has impacted trucking pricing this year and forced several companies to idle parts of their fleets and rethink strategy. More than half of trucking stocks with a market cap of over $50M are showing a negative YTD return.
- There's a sense that the extended downturn in freight demand could be bottoming out, a theory that could be confirmed by the upcoming reports from ACT Research and FTR.
- Looking further down the road, it can't be ignored that autonomous vehicle technology could have an impact with trucking services, logistics firms and truck makers. The dramatic delivery of 50K Budweisers (NYSE:BUD) by self-driving transport company Otto (Private:UBER) is considered by some analysts as much more than a publicity stunt.
- Ford (NYSE:F) announced last summer that it's developing smaller self-driving delivery trucks and Google has a USPTO-approved patent on a self-driving delivery truck. On the long-haul side, Daimler's (OTCPK:DDAIF) Freightliner is still testing autonomous 18-wheelers.
- Related article: MIT Technology Review on Uber Freight
- Related stocks: ULH, USAK, SAIA, PATI, PTSI, JBHT, KNX, SWFT, LSTR, MRTN, HTLD, WERN, ECHO, ODFL, CVTI, CGI, ARCB, YRCW, NAV, CMI, PCAR, FDX, UPS.
Mon, Oct. 17, 8:07 AM
- Navistar (NYSE:NAV) announces it appointed José Maria Alapont, Stephen R. D'Arcy and Dennis A. Suskind as new directors, effective immediately.
- Alapont is a former CEO of Federal-Mogul Corporation.
- D'Arcy served as a Partner of Quantum Group and an exec at PricewaterhouseCoopers LLP.
- Suskind is a precious metal trading veteran who served on the board of NYMEX Holdings and currently serves as a Director of the CME Group, Inc. and Bancorp, Inc.The appointments increase the number of Navistar board members to 12.Source: Press Release
Wed, Sep. 21, 12:00 PM
Fri, Sep. 16, 9:16 AM
- UBS raises its price target on Navistar (NYSE:NAV) to $20 to adjust to the significant Volkswagen investment in the company.
- "We think the recent VW investment has reduced credit risk. Near-term, we expect a weak truck market in 2017 to offset some of the improvements made to date, resulting in flat YoY EBITDA," notes analyst Steven Fisher.
- Shares of Navistar have rocketed up +40% since Volkswagen took a stake.
Thu, Sep. 8, 11:13 AM
- Navistar (NYSE:NAV) is down 0.70% after running up a huge +40% gain yesterday following news of a strategic alliance with Volkswagen.
- RBC: Analyst Seth Weber sees the deal as a positive for Navistar due to the significant cost savings and new revenue opportunities.
- Deutsche Bank: There's no surprise from DB on the deal with the U.S. an obvious blank spot for Volkswagen.
- Jefferies: The firm thinks the market is factoring the probability that Volkswagen will increase its stake in the future.
- Seaport Global Securities: The price target on NAV was raised to $19 from $13.
- Wells Fargo: A Hold rating is reiterated.
- Gabelli: "Navistar has been burning through cash. This allows dealers to tell their customers that Navistar will be here, in the North American market, well into the future," said analyst Brian Sponheimer.
Thu, Sep. 8, 7:11 AM
Wed, Sep. 7, 5:30 PM
Tue, Sep. 6, 12:45 PM
Tue, Sep. 6, 12:38 PM
- News of a deep alliance between Navistar (NAV +43.4%) and Volkswagen is creating some disruption in the truck sector. Analysts think the $256M lifeline from Volkswagen changes the discussion on Navistar away from impending bankruptcy.
- "Navistar’s partnership with a well-capitalized strategic leader such as VW with hopes of a full buyout later presents a better alternative for both equity and credit holders versus restructuring or waiting for a cyclical recovery," observes CreditSights.
- There's some anxiety with traders on the impact on rivals of a stronger Navistar. PACCAR (PCAR -1.5%), Cummins (CMI -6%), CNH Industrial (CNHI -0.9%), and Supreme Industries (STS -0.9%) are all lower in mid-day trading.
Tue, Sep. 6, 12:00 PM
Tue, Sep. 6, 9:14 AM
Tue, Sep. 6, 7:52 AM
- Shares of Navistar (NYSE:NAV) are soaring in early trading after the company confirms that it entered a strategic alliance with Volkswagen Truck & Bus.
- Volkswagen Truck & Bus will acquire 16.2M newly-issued shares in Navistar at a price of $15.76 to accumulate a position of 19.9%. Navistar will receive $256M from the equity investment to be used for general corporate purposes.
- The company says it expects "significant" synergies from the strategic technology collaboration, with cumulative synergies ramping up to as much as $500M after five years.
- "Starting in the near term, this alliance will benefit our purchasing operations through global scope and scale. Over the longer term, it is intended to expand the technology options we are able to offer our customers by leveraging the best of both companies and enabling Navistar to deliver enhanced uptime," says CEO Troy Clarke.
- Volkswagen Truck & Bus is a wholly-owned subsidiary of Volkswagen (OTCPK:VLKAY).
- Previously: Report: Volkswagen, Navistar to announce partnership (Sept. 5)
- NAV +28.64% premarket to $18.10.
Mon, Sep. 5, 10:43 AM
- Volkswagen's (OTCPK:VLKAY) trucks division is close to announcing a partnership with Navistar (NYSE:NAV), in the latest example of a deal driven by emissions regulations.
- Update: VW will pay around $16 per Navistar share or about €200M in exchange for a 19.9% stake in the truckmaker, sources told Reuters, saying a deal could be announced as soon as today.
Wed, Aug. 31, 12:01 PM