Why Mohnish Pabrai Likes GM, Fiat, and Southwest Air

[indirect]

http://www.barrons.com/articles/why-mohnish-pabrai-likes-gm-fiat-and-southwest-air-1481352344

[Rainforesthiker]

http://www.barrons.com/articles/why-mohnish-pabrai-likes-gm-fiat-and-southwest-air-1481352344

 

Is there a way to read this without having a Barron's subscription?

[CorpRaider]

Nice.  I've been curious about his view on autos since one of those recent presentations on youtube where he hinted about it.  Hmm.

[racemize]

http://www.barrons.com/articles/why-mohnish-pabrai-likes-gm-fiat-and-southwest-air-1481352344

 

Is there a way to read this without having a Barron's subscription?

 

Google the title and click on the link from Google.  Or I can save it for you.

[fareastwarriors]

http://www.barrons.com/articles/why-mohnish-pabrai-likes-gm-fiat-and-southwest-air-1481352344

 

Is there a way to read this without having a Barron's subscription?

 

Google the title and click on the link from Google.  Or I can save it for you.

 

Still surprised not everyone knows about this already.

[whiterose]

He mentioned Southwest looking to dip their toes into europe. I would see this as a huge negative considering the cutthroat competitive landscape. Except Ryanair, noone seems to make any real money imho.

[CorpRaider]

I took that to mean adding some transatlantic routes, not going into short haul within Europe.

[muscleman]

Could someone help me understand the difference between Pabrai's bullishness on airlines VS David Einhorn's Bullishness on MU in 2015?

 

http://www.gurufocus.com/news/373674/david-einhorn-comments-on-micron-technology

The thesis sounds pretty familiar.

 

"Our thesis has been that Micron Technology’s primary product, DRAM, has consolidated to three players, who are likely to create more industry profits compared to when DRAM production was highly fragmented.

The problem is that structural industry improvement doesn’t make DRAM less cyclical. The large capital requirements force participants to make large investments in anticipation of future demand. If the industry overestimates demand, it still makes sense to operate at full capacity and oversupply ensues."

 

MU has not been doing well even in a three player industry. Revenue and EBITDA still shows the cyclical pattern.

[constructive]

"We aren’t going to see high oil prices, pretty much ever, because if oil goes to $60 a barrel, they will start pumping in West Texas. The fracking companies can be profitable in some parts of Texas at $35-a-barrel oil. So oil, for any sustained period, isn’t going to go up."

 

I don't understand this claim. West Texas certainly isn't the marginal producer of oil. The marginal producers are mainly offshore or remote locations (Canada, Alaska, North Dakota, Brazil, etc). West Texas wells that are profitable at $35 are already going full throttle.

[racemize]

I think there are a fair number of things in Texas not being drilled right now due to capex budgets. 

 

Anyway, I think his point is that there is plenty of capacity that is idling to put a cap on oil prices, even if we don't label where that particular capacity is.

[augustabound]

Someone needs to post a Buffett quote here about businesses profitability based on an underlying commodity.

Actually I'm surprised nobody has yet. You guys are slipping......

[investor-man]

saw this pic on Value Walk. Thought you guys would appreciate it

[Gamecock-YT]

I took that to mean adding some transatlantic routes, not going into short haul within Europe.

 

Still would be pretty stupid and is nothing more than a pie in the sky idea they use to sucker in people looking for growth IMHO. They don't have the plane to do it, would lose efficiencies that they have with fleet commonality, etc. If your idea for investing in SWA has anything to do with Europe you are a flat out sucker.

[Mephistopheles]

http://www.barrons.com/articles/why-mohnish-pabrai-likes-gm-fiat-and-southwest-air-1481352344

 

Is there a way to read this without having a Barron's subscription?

 

Google the title and click on the link from Google.  Or I can save it for you.

 

Still surprised not everyone knows about this already.

 

This stopped working, at least for me with wsj, a while ago

[augustabound]

This stopped working, at least for me with wsj, a while ago

 

It still works for me but the odd time it doesn't. If that happens when I click on the Google link, instead of clicking normally I right click and open in a private window (Firefox) or Incognito (Chrome). That usually works.

[CorpRaider]

Barron's had a recent subscription deal for $56 for the year.  I think it is worth that. 

[alwaysinvert]

Or install the add-on Block Referer (in Chrome, don't know if it exists for other browsers) and reroute these sites to always go via google.com. Some sites instead of the Google backdoor have a lock after a certain number of read articles. For them you could just try with another browser, because how they read your IP differs between browsers.

[augustabound]

Ah, I forgot about referer control. I had that at one point.............not sure why I got rid of it.