Airline companies have taken flight recently in spite of the October stock market sell-off, tremendous volatility, and global economic slowdown as crashing crude oil prices lower the cost of jet fuel for the industry. The accompanying table includes statistics for the ETFI Global Airline Index and short ETF proposal, which has still lost over 60% of its market value in the past year for the 30 lowest rated companies despite the recent bounce. Both the 30 lowest rated and all 50 companies have fared worse than the
Transports have provided a safe haven for investors with the iShares Dow Transports (IYT) registering a small gain over the past year in spite of a meltdown in financials and sharp losses in the overall market averages. The gains in the Dow Transport ETF were largely the result of strong performance by the top four U.S.-based railroads by market cap which I wrote about yesterday as a bullish trade, accounting for over 30% of the stock holdings for IYT.
As evidence of increased commercial interest and product developme
The U.S. auto industry is poised to begin lobbying Congress for up to $50 billion in low interest loans to help them better compete in the global market by upgrading manufacturing facilities and paving the way for the production of vehicles with better fuel efficiency. Last year, Congress authorized $25 billion as part of an energy bill aimed at producing electric and hybrid vehicles, but auto makers are looking to expand th
Top 5 Companies by Market Cap Top 5 Companies by 52-Week Stock Price Decline
Shares of UAL (UAUA) were briefly halted for trading and grounded earlier today on a re-posted article from six years ago by the Florida Sun Sentinel newspaper on its website which stated the parent company of United Airlines had declared bankruptcy. Only the date was changed in the article from 2002 when United Airlines entered bankruptcy, which the Company emerged from in
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
5/30 - "Every year, it's the same story. Southwest Airlines (LUV) hedges against high oil prices and the other airlines bemoan that they should have done the same (some also go bankrupt)...this year they hedged 70% of their fuel costs at $51/barrel."
"Many analysts see Southwest as the only airline likely to show a profit this year. Airline analyst Terry Trippler goes one step further and has a dire forecast for the end of 2008:
'[Southwest] may be the only one left standing.'
There's a common misperception that when large carriers go bankrupt, they emerge stronger due to better leverage with employee compensation and lower debt levels. This is used to explain why LUV has been a lackluster performer for years. This is simply not true. LUV's problem hasn't been Continental emerging from bankruptcy lean and mean, its problem has been other low-cost carriers imitating its model in cities Southwest hasn't already entered-- namely Airtran, ATA, Frontier, and JetBlue.
So while there may be a bunch of bankruptcies of major airlines, this won't deter Southwest
4/2 - "I have had some clients ask me, what industry I think will benefit from the $600 rebate checks that are due to be sent out as part of the U.S. economic stimulus package. I think airlines will benefit, especially lower cost carriers like Southwest (NYSE: LUV) and Jet Blue (NASDAQ: JBLU)."
"Because we aren't talking about flying around the world or across the Atlantic for that measure, trips to Las Vegas or Orlando, for example, will fit the family, and of course people need a way to get to these destinations, so that's how the airlines become interesting."
3/19 - "Despite the attention focused on an ongoing investigation of its maintenance practices, Southwest (LUV - Cramer's Take - Stockpickr) appears well-positioned to face the airline industry's twin problems of rising oil prices and potentially slackening demand.
While Southwest has long been buoyed by an industry-leading fuel hedging program, CFO Laura Wright said Tuesday that "based on market prices today, our 2008 fuel hedge is the best hedge position we have ever had."
"Like other airlines, Southwest continues to see strong demand. In January and February, load factors were the seco...
I have had some clients ask me, what industry I think will benefit from the $600 rebate checks that are due to be sent out as part of the U.S. economic stimulus package. I think airlines will benefit, especially lower cost carriers like Southwest (NYSE: LUV) and Jet Blue (NASDAQ: JBLU).
The USA Today has an article about the kind of vacation you can have for $600. The article says: "With most Americans expecting to receive a tax rebate of up to $600 ($1,200 for married couples), t
JPMorgan slashed ratings on the key stocks airline companies yesterday and the stocks fell like a rock. 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.
3 bulls on LUV are in the red on this board...yet people still wish for miracle to happen on such a lackluster performer within a strong airlines sector...
Wall Street don't put up with weak performers. Technically, LUVis the weakest link in airline , it failed the join the sector's rally since late August.
Despite its poor performance, LUV is still over-love by Wall Street gurus, of 15 analysts who follow LUV, 7 give it strong buy/buy, 6 hold with only 2 sell.
"...Now with LUV - I have traded the company about three times last year, and managed to gain a total of 30% on the year (about 10% each quarter for the last three). The chart you sent me basically tells me that LUV seems to be fairly cheap at the moment. (I would likely sell JBLU)
I am NOT a day trader. LUV is on my list because it is the only airline that consistently over the years managed to successfully grow and make money. They have found a pattern for success in a tough market. People use/will use Southwest as they used to travel in Greyhound buses.
JBLU has a operating margin around 2%, while LUV has close to 11.5%. OK, JBLU may have double the quarterly growth rate, but the question will be how successful JBLU will be in keeping this up. And to be honest. +17% quarterly growth on 8.8bn in revenues still sounds like more than +38% growth on revenues of 2.4bn. So in absolute terms, LUV is still gorwing faster. And JBLU, in addition to the troubles (JBLU: oops we are growing too fast) in the last two quarters, has yet to establish a track record that allows for the assessment of a comparable P/E ratio. Until then, I would warn you, JBL
The industry’s strongest fundamental story is not yet showing signs of maturity based on traffic and revenue and it continues to execute growth. LUV is still showing their pricing power flexibility over the industry by consistently having the best overall travel proposition: lowest costs and fares. Queues and lines are usual in airport to board on a Southwest’s airplanes, but the nation's largest low-fare airline has indeed been losing altitude.<o:p></o:p>
<o:p> </o:p>
LUV: Share prices” 5% Nine months ended in 2006<o:p></o:p>
Trader who needs HELP!!
- Im looking for a Stock Pick Website. What are the most important things for me to look for? What makes a good Stock Pick site? What sort of content sho
Data powered by QuoteMedia.
All Rights Reserved.
Data delayed 15 to 20 minutes unless otherwise indicated.
Terms of Use.
None of the information contained on SocialPicks.com constitutes a recommendation by SocialPicks or its users that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. SocialPicks is not responsible for the posts, discussions, and recommendations of the users on the Site. SocialPicks does not provide investment advice. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the website. SocialPicks' users' past results are not necessarily indicative of future performance. Neither SocialPicks nor any of its users guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the website. You understand and agree that you use the Site and Services at your own discretion and risk and that you will be solely responsible for any damages that arise from such use. Before acting on any information contained on the website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
