I look at only the real analysts research not the computer generated spam. The lowest target on the street if you want to use those as a point of reference is $41 at Morgan Stanley who btw in general has never been a big fan of any airlines and consistently had the lowest price targets. Most of the other targets are low $50s and I believe imperial is street high at $64. I would trust these brokerage who actually write real research reports over fidelity.
I was looking at Fidelity Trading Central and on 8/25 they downgraded Luv with a price target of 29.90. Schwab has a "c" rating on them. Value Line is 1 on timeliness. Looking at other research reports there os a wide range of rating.
With the huge drop on oil prices and southwest adding more and more non stop fights and new destinations, i can't help but wonder why southwest isn't flying high?
Sentiment: Strong Buy
With all of this childish yuppie trading going on. The world is not ending nor is China. But the traders don't make money in a one sided market. They need rumors. BS and most of all man made implied volatility to avoid WORKING for a living.
I stated in the 20's... oil drop lower then I expected...thought it would hold off 50...but dumped more... I did get out of some awhile ago.... that said all gravy with what is left.... we will be under 30 next year...not sure how long I will sit on the remainder. Luv has topped out...just a matter of time we are back to 1-25 area... ( I dont see the teens for a long time..maybe 2017...)
On previous Accelerated Stock Repurchase (ASR) contracts, LUV’s bank purchased between 300,000 and 400,000 shares per day. That would put us about halfway through the current $500 million contract. As mentioned before, we want the average price of this current ASR to be $37 to $38, meaning that they pull in 13 million shares on this current ticket.
This will take us down to 646 million shares outstanding.
Our objective is to get the shares outstanding down to 600 million by 2017, a very likely possibility. If the income is $2.4 billion dollars in 2017 (as it will approximately be in 2015 and 2016), PRESTO….. $4.00 in earnings.
$4.00 a share in earnings (conservative estimate) = $60 per share in price (also a conservative 15x earning). Magic.
Exactly. Airlines stood to profit even if oil prices flatlined at these relatively low prices. With a decline in oil prices, that just widens margins more. A slumping China market is no big deal. China is still only 13% of the global economy compared to the US at 22% and EU about the same. Though US growth is slow, I don't see a recession looming. Low oil prices and low-cost products coming from China and the emerging markets are a boon to the US economy, not a detriment. Those things free up capital for expansion. If you have stocks in China or the oil business like I do, yes, that hurts those stocks; however, about everything else benefits. Everything else is a lot larger than oil and Chinese stocks. A lot larger. Airlines are a part of that "everything else." Housing, shipping, manufacturing dependent upon energy prices, consumer goods.... large list of things that benefit. Gasoline at $2 puts about $1500 into every household budget that can be spent on other things over gasoline at $4. That is just one example. A lot of things benefit from low fuel costs and lower costs for imported goods. If you spend $15 less for that shirt made in China, that's $15 you can spend to see a movie, for example, and you still have the shirt. It's a gain to our economy when we can buy cheap products from China.
yeah sure u did lol. and even if u did which i don't believe then it was a pretty mediocre trade considering the stock was $31 a month ago. remember when you were saying it was going to the teens and i told u that u were a clown. Well today you and your fear mongering phony trades or even more clownish then back then. run off and troll another board now lol
The price of jet for july and august we are well below the 2nd quarter prices and inthat quarter they had 500 million in fuel cost saving. Look for 3rd quarter earning to be substantially above estimates. Will once againbe a record quarter for the company.
Sentiment: Strong Buy
What does China have to do with LUV? Nothing. This just happens in a down trading flash. LUV could make $4Billion this year and more in 16 if oil holds steady or down, and it is predicted lower. Don't jump from the ship. It is a really good company and great investment. May get back in the high $40's this year. But never buy a stock with out a stop in place... Might buy more at this price.
If you are in it at a loss keep it possibly add to. The stock is high quality and not exp. Also Lous Navalier mentioned it favorably
Yes, but if he feels like that might be too late, a good method is to buy half of what he wanted to buy before earnings and the other half after. This is a nice dip and seems a bit unjustified to me. It is like being a kid in a candy store looking across the market at all the relative bargains. Just complicated to know when the dust will settle.
May not go that low for awhile, notice the volume is less then 5 million. If it stays above $38.50 until mid to late next week I don't think we will see it that low for quite come time. IMHO
Sentiment: Strong Buy