116: Watchlist News
Links to some articles and news related to Watchlist companies, plus a sprinkling of commentary
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Berkshire Hathaway
Railroad regulator proposes 2-person crew: The rail industry’s regulator is proposing a rule to require at least two member crews. BNSF, along with Union Pacific and two short-line rails filed challenges, saying it was unnecessary and would hurt consumers. This is one of those “threats” that would affect every industry participant so the net effect would be nil (I think) within the railroad industry. But it would shrink the advantage trains have outside the industry, namely over trucking.
Berkshire issues $1.7 billion of Yen-denominated bonds: Is Buffett gearing up for more purchases of Japanese equities or simply taking some risk off the table by hedging some of the gains on prior purchases?
Hingham Institution for Savings
First quarter results: Hingham released its Q1 results showing continued (but slowing) contraction in net interest margin and spreads. NIM went from 0.89% in Q4 2023 to 0.85% in Q1 2024. Spreads went from 0.17% to 0.13%. That the bank still generated positive Core ROA (0.20%) and Core ROE (2.14%) is a testament to the low-cost model. I plan to attend the bank’s annual meeting next week (which finally doesn’t conflict with my annual BRK pilgrimage).
Triumph Financial
First quarter results: Q1 results reflected continued weakness in the trucking market, now going on 24 months of freight recession, the longest in history. On the plus side, Triumph added new companies to TriumphPay, including Werner Enterprises, and Fitzmark. The bank opportunistically increased its construction portfolio during the quarter. TPay network volume continued to grow, topping $1 billion in the quarter.
Here’s a nice graphic showing the company’s potential to tap into other revenue streams with its nascent LoadPay offering:
Lastly, the company disclosed that it took advantage of low office prices to secure a new HQ building.
Stay rational! —Adam
