Tea with AK71: A better car.

Reading the latest issue of Newsweek and this really makes sense:

"Instead of jumping through hoops to make an electric car that most people can't even afford, why not just develop an internal-combustion engine that gets really amazing gas mileage? That's the premise of Troy, Michigan based EcoMotors...."

"Our carbon footprint will be smaller than a full blown electric car running on electricity generated in the U.S., where about 50 percent of electricity is made by coal.  In places like China, where 90 percent of the electricity comes from coal, we'll be far below the carbon footprint of an electric car," says EcoMotors CEO Don Runkle.."

Source:  "Finding more in the tank" by Daniel Lyons in Newsweek, 1 Nov 10.

I have never heard people questioning whether electric cars are really environmentally friendlier, questioning how the electricity that would run the cars is produced.  This is a pertinent question.

There is also the question of wastage as other forms of fuel are combusted to produce electricity which would in turn run the electric cars.  How much is wasted in the conversion process? Would it not be better to build a more efficient internal combustion engine?

I am not an engineer but this idea makes a lot of sense to me. Any thoughts?

AIMS AMP Capital Industrial REIT: 2Q FY2011.

The REIT saw lots of buying interest today as more than four fifth of the 49 trades were Buy Ups at 22.5c, a total of 1,613 lots out of a total of 1,923 lots that changed hands. I guess market participants were expecting a good set of numbers today as the management reported on its 2Q FY2011 results after market closed at about 7pm.

DPU for the quarter which would be payable on 17 Dec 10 is 0.3968c instead of the anticipated 0.52c.  This is because of the issue of 513.3 million rights units on 14 October 2010 and 7.2 million units to the Manager on 19 October 2010 for payment of the acquisition fee in relation to the acquisition of 27 Penjuru Lane.

Distributable income from 27 Penjuru Lane would be included in the next distribution, not this one, since the acquisition was done in 3Q FY2011 and not in 2Q FY2011.  Expect the DPU for 3Q2011 to be much higher, therefore.

Substantial Unitholders:
16.07%  AMP Capital Investors (Luxembourg No. 4)
11.46%  Dragon Pacific Assets Limited
9.45%   APG Algemene Pensioen Groep N.V
8.24%   Universities Superannuation Scheme Limited
7.65%   George Wang

I have mentioned a few times before that I am waiting to accumulate more at 21.5c. The last time I said this was on 25 Oct: "A reason why I am not in a hurry to accumulate is because I already have a sizeable investment in this REIT. I don't need to accumulate at 22c. I can wait. The technicals suggest that waiting might not be a bad idea too."

If there should be some panic selling next Monday, I would be ready to buy more.

See presentation slides here.

Related post:
AIMS AMP Capital Industrial REIT: Accumulation price?