August 1, 2022 | Daily JAM |
I ended my recent post “This looks like the Bear Market rally I’ve been waiting for” on my subscription JubakAM.com site by saying “Enjoy the ride but look to sell shares of companies that look most exposed to the return of recession/high interest rates/inflation worries. That post had been up for all of 18 minutes before I got the perfectly reasonable question “Like what?” And I promised an answer so here are my preliminary thoughts on what I’d look to sell in a Bear Market rally
July 12, 2022 | Daily JAM, DAL |
Today, July 12, shares of American Airlines (AAL) closed up 9.98%. The company announced that it expects to post a pretax profit of $585 million in the second quarter as vacationers pack planes during the summer peak season. The company expects revenue to be about 12% higher than in the same quarter in the pre-Pandemic year of 2019.
April 13, 2022 | Daily JAM, DAL, Jubak Picks |
Delta Air Lines (DAL) reported a smaller than expected first quarter loss today and shares rose strongly after the company said a strong rebound in summer traffic would turn results positive in the second quarter. As of noon New York time Delta shares were up 4.51%. The airline lost $1.23 a share, slightly less than the Wall Street consensus of a $1.27 a share loss
April 11, 2022 | Daily JAM, DAL, Jubak Picks |
As of 3 p.m. New York time Monday, April 11, airline stocks were rallying strongly ahead of Delta Air Lines (DAL) earnings report Wednesday morning. Delta shares were up 4.68%. Shares of American Airlines (AAL) had gained 3.04%. And United Airlines Holdings (UAL) was ahead 1.72%.
March 21, 2022 | Daily JAM, Morning Briefing |
Monday was a great day to be invested in stocks. As long as you were invested in commodity stocks.
March 15, 2022 | Daily JAM, Jubak Picks, Morning Briefing |
Oil prices collapsed. And airlines reported better than expected pick up in traffic. So airline stocks soared with the most stressed operators showing the biggest gains in their shares. Delta Air Lines (DAL) closed up 8.70% on the day. United Airlines (ULA) picked up 9.19%. And American Airlines (AAL) gained 9.26%.
March 4, 2022 | Daily JAM, DAL, Jubak Picks |
As far as I’ve been able to discover, it was a research note from Wolfe Research that began the negative “rethink.” Wolfe forecast that the airlines including United Airlines (UAL) and American Airlines (AAL) were burning cash so fast because of the jump in the cost of jet fuel that they might need to sell stock to secure more liquidity.. The worry isn’t outlandish. Oil broke above $115 a barrel (for U.S. West Texas Intermediate) today and JPMorgan Chase and Goldman Sachs have both recently projected that crude could rise to $185 a barrel by the end of 2022. Today shares of American Airlines (AA) were off 7.13%. United Airlines (UAL) dropped 9.07%. And Delta Air Lines (DAL) was down 5.63%.
January 31, 2022 | Daily JAM, DAL, Jubak Picks |
When airline stocks come off a bottom, they come off fast and big. And I think that’s what we’re going to see over the next few quarters of 2022. Which means it’s time to buy. I could be early but the extreme volatility of stocks in the sector means that if you wait too long, you’ll miss the juiciest gains. Tomorrow, February 1, I’ll be adding shares of Delta Air Lines (DAL) to my JubakPicks Portfolio with a target price of $46. That’s just below the 200-day moving average and slightly further below the March 7, 2021 high of $49.83 highlighted in my last revision of the Dip-O-Meter this morning, January, 31.
August 13, 2021 | Daily JAM, Morning Briefing |
Will the Delta variant surge lead to lower than expected revenue and earnings in the third quarter as consumers pull back? It’s an important question with stocks near all-time highs. Right now it looks like U.S airlines might be the early “canary in a coal mine” indicator of danger.
April 20, 2021 | Daily JAM |
Yesterday, April 19, after the close United Airlines (UAL) reported a loss of $3.21 a share (excluding non-recurring items) or a $7.50 a share all in loss for the first quarter of 2021. Wall Street had been looking for an all-in loss of $6.97 for the quarter. Operating revenues of $3.221 billion also fell short of estimates at $3.253 billion.
December 28, 2020 | Daily JAM, Notes You Need |
In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. I launched this new feature on JubakAM.com on December 1, 2016. It runs only on JAM and won’t appear anywhere else. (Because I haven’t done one of these in a while and because there’s so much news, this might run on for a while.) For example, today at 10:20 a.m. I posted: More than 2.4 million people moved through TSA airport checkpoints this past weekend. That’s about 50% down from the number of people who went through airports in the two days after Christmas in 2019. But it’s the busiest weekend since March. More than 1.28 million people traveled Sunday, the biggest number since 1.52M people flew on March 15. Air travel hit a low of 90, 500 people flying on April 12. The CDC has advised, and state health officials have pleaded, for people to stay home for the holidays in an effort to damp the surge in coronavirus infections.Â
October 14, 2020 | Daily JAM, Volatility |
After the close today, October 14, United Airlines (UAL) reported a loss to $1.8 billion for the third quarter. Operating revenue fell 78% from the third quarter of 2019. In the second quarter United lost $1.6 billion and reported an 87% drop in revenue. The third...
