Cramer number 1, A1 flip flopper. He likes everything when it is making a new high. When it is cheap he hates it. Airlines have gone up a lot now so he will be pushing the airlines. He was pumping Chipotle at the top. Now that it is plunging he says sell.
I own Delta but we are not out of the woods yet. I bought at 31 and I am pretty sure that we will not go below that level, but I expect a little retracement back to the 31-32 level next week.
Yeh, I kind of bought Delta as a long term hold but I bought AAL as a trade. AAL apparently is more levered to oil prices then Delta is since it isn't hedging its oil. AAL will be a bigger beneficiary of lower oil prices and that is why I bought it. Once the Ebola scare is over then reward investors will reward AAL with a very nice pop. Not sure exactly where I will sell but expecting this to go back to its old high by the end of the year.
The numbers were good. Higher then expected on the bottom line and higher then projected for next quarter. What do people want? Sure you could nit pick if you want to but it just sounds like sour grapes from a bear.
DAL is better managed, plain and simple it is a better company. I have positions in both for different reasons but it is DAL I would want to hold for the long term. The less said about Ebola the better. People are panic stricken enough already.
I would be careful, I guess maybe under 10, I would take a chance. Right now oil is going down. I don't see that changing near term because the Saudi's are determined to keep pumping a drive the price down to get rid of the marginal producers in the market. Their cost is only 10-15 dollars a barrel so they can continue to pump to get the price down. The dividend just announced was better then I thought but with it was with oil at over 90 a barrel. The next divvy check is sure to be smaller. As over supplied as the market is there is no way we get back over 90 for quite a while.
Unless this get to be widespread, people will travel. I am planning a flight to Vegas at the end of the month. Media loves to exaggerate to sell a story. Too bad people let them control their common sense. Right now there are 10,000 people that have Ebola in a world of 7 billion. 99 percent of them are in 3 countries. What are your chance of coming in contact with someone that has it?
I believe we are making a bottom. The stocks that got hit first and hardest like the airline stocks stopped going down in the last couple of selloffs. Notice the broader Russell 2000 was actually up to flat when the dow and S&P were getting hit.
This is beyond stupid. She should not have been on that plane. Someone at the CDC needs to lose their job and the woman needs to be sued by the airline and the people on board the plane.
They have publicly said they do not want to pay more than 40 percent of earning to a dividend. Right now they are just right about 40 percent so don't expect a raise this year. Next year is next year but I would expect a 2 cent raise next year based on what I think they will earn.
Given the Microchip call, this was very good news as the MCHP soured the whole sector even though INTC is in a different league. Not only was it a beat but guidance was raised. Given the gloom and doom of slowing economy and currency havoc, this was an outstanding report.
Definitely a big buying opportunity for the Airlines. Lower fuel cost not only mean lower fuel cost for airlines but also more spending money for consumers as they spend less on gas. People are generally scared to buy the airlines because the belief is Ebola will get out of control and people will stop traveling. Ebola is pretty well contained and a vaccine is just around the corner. Still think another scare could drive this below 30 in a panic sell but long term this is going higher. 39? Oil was near 100 a barrel when this was hitting 40 so no reason this can't get to 40 with oil 20 percent lower. The oil market is 2 million barrels a day oversupplied but Saudi's are the only ones with the ability to cut 2 million out of production and they indicated that they won't. They are fine with 80 dollar a barrel oil.
You only lose if you sell. Sorry, I made to mistake of loading up on DAL this a.m. Yes, Ebola is going to churn the stock till it is over. Unless Ebola gets out of control, then it is just a scare to get people out of there investments. If it goes below 30, I will load up on more. No reason to sell, pricing power is there and falling oil prices are going to help earnings. When earnings are released on Thursday, folks are going to wish they hadn't sold.