"If there’s one sector that stands to benefit handsomely from a further slide in oil or, at least, a moderation in crude’s rally: the airlines," explains energy sector expert Elliott Gue.
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In The Energy Strategist, he says, "Airlines may make a terrible long-term investment but can be an outstanding short-term trade." Here he looks at Delta Air Lines (NYSE: DAL) and, for the even more speculatively-inclined, US Airways (NYSE: LCC).
"Some investors will rightfully cringe from any mention of this sector; after all, the airlines have consistently lost money throughout their post-deregulation his
"If there's one sector that stands to benefit handsomely from a further slide in oil or, at least, a moderation in crude's rally: the airlines," explains energy sector expert Elliott Gue.
In The Energy Strategist, he says, "Airlines may make a terrible long-term investment but can be an outstanding short-term trade." Here he looks at Delta Air Lines (NYSE: DAL) and, for the even more speculatively-inclined, US Airways (NYSE: LCC).
"Some investors will rightfully cringe from any mention of this sector; a
Analysts' Recommendation: Buy 30 Days Ago: Buy Analysts' Targets Lehman Brothers $9 Equalweight Wednesday, May 21, 2008 Credit Suisse $11 Reduce Tuesday, March 11, 2008 Delta Air Lines, Inc., together with its subsidiaries, operates as an air carrier in the United States and internationally. It provides scheduled air transportation for passengers and cargo. As of December 31, 2007, the company together with its subsidiaries, alliances, and partners offered flights to 485 worldwide destinations in 106 countries. It owned and leased a total fleet of 5...
Investors are getting bearish these days, which comes as a surprise to me, since I'm used to being in the minority. I was a bear when I first took the leap from mutual funds and started trading stocks in 1999, and am a bear still. I wish I'd turned bullish for a couple of years at what I consider to be the large bear market recovery of 2003-2006, but I didn't. However, since I was (and still am) bullish on commodities since around the same time frame, I can't complain about my returns over the period.
This spring, I was more bearish than usual, which is why I brought you my ideas
4/15 - Goldman Sachs - "We are not surprised by the nature or timing of this well-telegraphed merger between NWA and DAL. The announced transaction suggests that the merged companies could achieve synergy savings of $900m-$1b from the optimization of the combined airline’s fleet and an expanded global network plus overhead savings – a level that if achieved would offset our combined loss estimate for the 2 airlines in 2009 of $915m. The merger requires DoJ approval which the airlines expect to receive by the end of the year."
"But consolidation in any industry – not least the airline indus...
DAL is selling off (14.22%) on the news of its merger with NWA. The announcement was made after market close yesterday, so I was unable to sell off higher bought shares on the anticipated spike. DAL states the deal should close in 2008, and the combined airline will be able to turn a profit in 2009 even with oil at these prices. I'm going to hold.
3/13 - "Jet Fuel has increased 24.2% in the last month and 67.9% in the last year, so it's time to short the industry and long the few stocks that will survive...JPMorgan analyst Jaime Baker cut his ratings on seven major airline stocks, blaming uncertainty over the outcome of the proposed Delta-Northwest Airlines combination and forecasting major losses amid fears of a recession."
"American Airlines parent AMR Corp., Northwest Airlines Corp., Alaska Air Group Inc., US Airways Group Inc. and United Airlines parent UAL Corp. were all downgraded from "Overweight" to "Underweight."...Baker al...
Last September I was bearish on Delta Airlines (DAL), saying “How quickly we get from something that looks enticing to something that looks like it came out of bankruptcy five months ago. Which, of course, it did. Bottom line, if you want to take a flier on an airline, I’d stick with one of the short squeeze plays. The majors still look like they can cause a major league stomachache.”
Earlier this month, I noted that I should learn to take the money and run , as three of my previously correct bearish calls had been bolstered by takeover rumors. With Delta now solidly back in t
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"If there’s one sector that stands to benefit handsomely from a further slide in oil or, at least, a moderation in crude’s rally: the airlines," explains energy sector expert 
