Market sentiment usually looks at least 6 months out. Airlines struggling leads me to believe wallstreet sees oil headed back up soon or the economy swirling to the left in a vortex at the bottom of the toilet bowl. Maybe both.
Yeah, VP on CNBC interview says kneejerk reaction by market. Well over a billion just in backlog, 70% coming due in 2016 and 2017. Lack of guidance is freaking the market out. VP says they don't want to give guidance until they have a clearer picture (and who can blame them with WS attorneys slapping shareholder class actions for as much as a fart by anyone). 250 million left on stock repurchase plan. Plan has daily limits on volume and apparently time restraints on when they can purchase in relation to earnings releases. Sensed the VP wanted to get sarcastic with the interviewers but restrained himself. (like duh, on these questions) I'm thinking 50% retracement from here after cooler heads prevail next week. GLL's, LLAP.
But the California Tree Huggers don't care about that. They don't want you to frack sand either. Fracking has become somewhat of a trigger word. I might suggest MEMP starts #$%$ instead. #$%$ probably wouldn't get near the attention.
yea..ok..Social Security is going bankrupt...I've been hearing that for the last 30 years. It will take a SS crisis to get it resolved but it will be resolved. Did you know the Sun is also burning itself out.
Now it's at 6.6. Maybe we need to go to $25 or so to straighten this out. JBLU, HA and LUV are all sitting at a PE of 11. DAL and AAL PE's are in the toilet for some reason. I would throw SKYW in with the smaller airlines.
I was under the impression their margins remained relatively the same % regardless of price. 5% of $4 per gallon is twice as much #$%$ of $2 per gallon and it cost the same to deliver both. Volumes may go up a bit with the cheaper fuel to help offset the lower revenue caused by it but why else would their earnings estimates be in the toilet if not for this?
About as volatile as it gets...bear or bull...historically chock full of big up and down swings. Look where we are sitting now on this chart and ask yourself what are the odds of it going back up...especially knowing the plunge is more than likely to be temporary due to the goodwill and divi cut.
That big 15 call option position in the press releases could very well be a hedge to a short position on the stock.
You do realize JBLU kicked the carp out of earnings and then proceeded to sell off big time. I would say the same will happen here with SKYW.
Does RCII attract Wallstreet trailer trash?
Icahn is the curse of death. Blockbuster, Herbalife, Cheniere etc..etc..How in the world did this guy get to be a billionaire? Inheritance?
The problem with MEMP is after the hedges roll off they need for oil to be priced higher than a price that will sustain Russia and OPEC.
The price of fuel has been cut with cheap oil so revenue for TA is in the toilet. This should be offset somewhat with increased traffic I would think but their bread and butter appears to be fuel sales. It looks to be a sound long term investment but I'm going to hold off a bit longer I think.