GUMSHOE IN HOUSE TEASER …AIRLINESOK Gummies. I give you an in-house teaser in a new sector.
Look, we gotta diversify from biotech, gold bullion, and 770 insurance plans. So here we go.
With oil prices down, airlines should benefit, right ?
Well, for the foreseeable future, there is ONE airline that is going to have a huge competitive advantage over all the others.
This airline will have lower costs than any other airline and their stock will soar on account of it. So…who is it ?
I will reveal the answer…not for $ 1995, not for $995, not even for
$ 99….just tell me your favorite airline stock and why in 50 words or less and, and I will reveal the answer FOR FREE in one week.
Readers of my previously authored thread on OIL…GAS CONVERSION…NANOTECHNOLOGY are not eligible for this
limited time offer. New subscribers only. Profitable returns of
$ 9868 % are not guaranteed. May result in no investment profits whatsover. But quit your bitchin, Travis only charges you $ 49.
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
I liked JetBlue last year because of the improving fundamentals plus fuel advantages, but like most US carriers they hedged about 20-25 percent of fuel costs so oil impact was a bit limited. I think American has the least hedging of the big airlines, at least in the IS, so that’s probably a solid bet on that front.
But really, oil and recession made all the airlines better businesses as capacity shrunk… If they can keep the oligopoly going through consolidation and sane operating policies, they’re all going to get rich with cheap oil
And cheap financing and flush consumers who want to travel.
Thanks for your attention, Travis.
One knowledgeable like for Jet Blue duly recorded.
With a partial for American.
Add my vote for LUV !
First quarter reports on April 23
I understand from their advertising that they actually invented low fares.
WizzAir- https://wizzair.com/en-GB/Search Started at overweight by JPM 4/7/15 😉
Are you accepting JPM’s rec as your reason, which is OK, or do you know anything about them ?
My favourite airline is the one at the filling station round the corner. There can’t be many commercial airlines that aren’t operationally geared. They may be good as speculations but surely not for inclusion in the average long-term portfolio. You need to be a good seller as well as a good buyer.
Hands down Baltia Airlines(BLTA). No lost luggage and no late arrivals in their nearly 26 year history as a start-up. No other airline can say that. Just because Baltia hasn’t gotten off the ground yet is just a mere technicality.
Baltia and and Wizzair entered as longshots.
Petethefeet carelessles discards his chance for bowkoo psychic income. Although I agree with him, no airlines in my portfolio as of now though I am considering the present Teaser pick.
Put me down for LUV as well. I feel they are the best run airline in the US and while I’m not a huge fan of their cattle car approach to seating on the plane, they keep costs down while providing good service which is what I want in an airline.
LUV. Big financial gains. Free luggage. Competitive pricing.
LUV running away with the voting so far !
I love LUV!! Bought it at $23 early last year when they were buying the gates to fly internationally to the tropical destinations and also merging with AirTran whom they had purchased already. I traveled on AirTran because of their brand new planes so I figured that was a good win for LUV right there!!
LUV IS THE ONE TO LOVE, BUY AND KEEP….A GREAT ONE TO HOLD
Look at LUV’s March numbers today!
10.2 billion revenue passenger miles (RPMs) in March 2015, a 6.7 percent increase
Available seat miles (ASMs) increased 4.4 percent
March 2015 load factor was 84.5 percent, compared with 82.7 percent in March 2014.
For March 2015, passenger revenue per ASM (PRASM) is estimated to have increased approximately 1.0 percent, compared with March 2014.
Thanks for reading and posting. Tell you the truth, I like your picks a lot. BLU and LUV may do better than my idea. And I do not follow the airlines much, that’s why I asked for your picks, but I noticed something about Delta I wanted to call out. So as promised, it’s a week later, so here is my pick:
$DAL Delta Airlines. Why, you may ask.
Well, the biggest cost component of any airline is jet fuel. In 2012 Delta purchased a refinery in Philadelphia when oil prices were sky high, thinking they would go vertical in oil production. They got it for a cheap price, as far as refineries go. Couple of hundred million. Sank another couple hundred million into it. Still a bargain. But with oil prices collapsing, they look pretty dumb and have taken a lot of flak over the move. So Delta has a half billion sunk into the plant, oil prices are in the tank. To top it off they had trouble getting crude oil to the plant, they had to rent a couple tankers.
Now in researching another subject a while ago, I came across Siluria Technologies, a small privately held Silicon Valley company that has a few patents for a technology that will enable production of jet fuel (among other things) from natural gas, at very economical prices. The technology has recently been proven
in a test plant and they are ramping up worldwide distribution of the technology
to all levels of producers in the oil and gas energy. They will be able to retrofit existing refineries and use natural gas as feedstock to make jet fuel.
Then I noticed that last year, Siluria Technologies announced a new board member.
Guess what…this newly-named director also serves as a director for…. Delta Airlines.
My hunch is that Delta Airlines will install a technically innovative conversion to their Philadelphia plant that will eventually be able to give them a serious price advantage over all competitors in the acquisition of jet fuel. I also suspect that the Delta plant will even sell jet fuel to competitors in the not too distant future.
That’s it. I wouldn’t jump on Delta on account of this, until and unless you see something that indicates that my Fearless Prediction is actually coming true.
Best to everyone.
$WZZAF Wizz Air Holdings PLC > Did you get you some HendrixNuzzles?