Despite Sharp Recent Gains, AMR Still Has Room to Fly

The entire airline industry has rallied just as I predicted and American Airlines (AMR) is already close to my price target. However, I think airlines have more room to run and I wouldn't recommend selling yet. Oil is still way overpriced and should continue to correct. Also, there may be more merger/alliance announcements released.

One of the reasons I was able to make such a great call on airline stocks is I like to keep track of the price of oil. However, for the past couple of years I have been disturbed by the obvious bias that is not disclosed in stories about the price of oil. If you read ten stories about the price of oil maybe one will mention the actual supply and demand of oil compared to normal levels. Most stories will have some obviously biased clown talking about potential supply disruptions, the falling dollar, or some other speculative nonsense.

To make matters worse there is never a disclosure at the end of the article. If the clown who is being quoted has a position in oil futures then this should obviously be disclosed.

This also goes for any story about stocks in general. If there is no disclosure at the end of the story you should complain to the people who wrote it. If they don't do anything about it, stop reading their stories and go to a more honest source.

Disclosure: None