wghanna2

China Gets 35% Iron Discount from Fortescue Metals

This price agreement and the promised financing will make Fortescue a big player in the iron ore business. This certainly should bode well for the stock long term as the company will become a major competitor to the two largest iron ore companies in the world. With the expansion, they could be shipping close to 150 million tons a year within two or three years.
The profit potential for this company is enormous. Just think what they have accomplished in their short existence. Starting from nothing three years ago, they have built a railroad, built a shipping terminal, and went from nothing to now shipping at an annual rate of about 50 million tons per year. What they have accomp[lished is amazing so it should be a very good bet they will be very sucessful in the future. I am a buyer for the long term expecting a homerun on this stock within five years.

$33 Billion in Taxpayer Money Subsidized Wall Street Bonuses

The talking heads of CNBC and Fox Business all want to keep the Government out of setting limits on the financial world. Their own greed gets in the way of reporting the facts. The loud yelling about Government not being able to run anything is great for sound bites but does not consider the fact that the banks got us into this mess. The Government with all its faults could not have screwed it up as badly. Salaries and bonuses should be capped at $500,000 per year. Any compensation beyond that could be provided with stock obtions based on the actual price of the stock at the time the obtion is awarded. These obtions should be required to be held at least three years to be vested from date of issue. If the stock price has not increased then the obtion will not have value but if it increase five fold or more then the obtions will truly reward the company executive. The maximum obtion value for all company employees should be capped using either ten percent of the most recent annual profit. or one percent of the shares outstanding.
This method would provide incentives to the executives to make profits for the shareholders since their big bucks would come from stock appreciation. It will never happen but it would certainly be a big improvement and fair for everyone!

Are Rising Interest Rates Taking a Toll on Stocks?

Just a few short months ago every analyst was yelling and worrying about the coming recession because of the INVERTED YEILD CURVE. Well, short term interest rates have remained basically the same but now the ten year has increased enough to eliminate the inverted curve. How can this be bad for the market when short term rates are not going up? Is there any logic to analysts prognotications?

Bill Hanna

Buffett Passes Over CN Rail for Norfolk Southern and Union Pacific

Where do you find the information that Bill Gates is a shareholder. I have not been able to find it. If he is, how many shares does he own? Good article but need assurance that Bill Gates is an owner.

Bill Hanna

FreightCar America: Orders for New Railcars on the Decline

Warren Buffett has recently invested in railroads. He announced that he has a substanial stake in Burlington Northern and he is currently acquiring stakes in two other unnamed railroads. Recently, it has been rumored that CNI is one of those railroads. Does the reduction in new car orders mean Mr. Buffett is wrong?