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Steve Hach
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Steve Hach is the Senior Editor at ValuEngine.com, a Newtown, Pennsylvania-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 7000 US, Japanese, and Canadian, and other foreign stocks. Hach utilizes... More
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  • Positive News from Airlines Leads to Gains for ValuEngine Forecast 22 Newsletter Picks $AMR and $LCC 0 comments
    Oct 21, 2010 1:48 PM | about stocks: AAL, AAL
    Go to ValuEngine.com
    October 21, 2010
    ATTENTION Advanced Investors and Finance Professionals:
    If you are reading this you should download ValuEngine Institutional Software to see how VE’s powerful quantitative tools can increase your productivity and effectiveness.

    Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE.

    Flying High Again

    Positive News from Airlines Leads to Gains for ValuEngine Forecast 22 Newsletter Picks AMR and LCC

      Subscribers to our ValuEngine Forecast 22 Market Neutral Strategy Portfolio Newsletter got a nice surprise yesterday as current long selections AMR Corp/American Airlines (AMR) and US Airways (LCC) reported good numbers for Q3.  Shares in both carriers jumped up 7% and 13% following the news.  Currently, the tickers are up @17% and 10% since our rebalance on Friday of last week.

      Our model has done pretty well with airline stocks over the past year or so, topped off by a whopping 202% gain in UAUA as the model selected that stock back in November 2009 just as the airlines emerged from their fuel price shocks and the worst of the recession.  Airlines have been increasingly profitable thanks to reduced fuel costs, increased travel, the creation of additional revenue streams (such as the hated checked baggage fees) and various adjustments to routes and scheduling which have boosted efficiency and reduced empty seats.

      Looking ahead, our Forecast model sees a muddy picture for US Airways with short term gains followed up by negative one and two-year forecast figures.  The model gets increasingly pessimistic after three months.  For AMR Corp., the longer-term picture is far more attractive with positive forecasts across the board-- and a whopping 41.8% giant projected for the three-year timeframe.

     Subscribers can check out the latest figures on US Airways, AMR Corp, and the Airline Industry from our models HERE

    Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE.

    For more on the VE Forecast 22 Market Neutral Strategy Newsletter Portfolio, Click the Logo Below

     

     

    Market Indices Data
      Latest Change YTD
    Dow Jones
    11,137.60 29.66 6.81%
    NASDAQ Composite
    2,457.12 -0.27 8.28%
    Russell 2000
    699.48 -2.63 10.32%
    S&P 500
    1,179.52 1.35 5.78%

     

    ValuEngine Market Overview
    Summary of VE Stock Universe
    Stocks Undervalued
    57.74%
    Stocks Overvalued
    42.26%
    Stocks Undervalued by 20%
    26.59%
    Stocks Overvalued by 20%
    14.55%

     

    ValuEngine Sector Overview
    Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
    Energy 1.24% 3.77% 8.77% 6.04% overvalued 20.96% 25.05
    Basic Industries 1.80% 2.30% 24.09% 5.13% overvalued 34.70% 25.36
    Public Utilities 1.10% 3.02% 2.60% 2.46% overvalued 13.20% 20.20
    Transportation 1.35% 4.15% 14.38% 0.77% undervalued 17.31% 19.19
    Consumer Non-Durables 0.64% 3.29% 10.73% 1.61% undervalued 18.95% 17.06
    Capital Goods 1.29% 4.00% 20.85% 3.90% undervalued 14.56% 21.63
    Finance 0.90% 3.70% 13.89% 5.42% undervalued 7.56% 18.10
    Consumer Services 0.84% 2.98% 13.59% 5.66% undervalued 11.69% 21.43
    Technology 0.93% 4.19% 21.00% 5.90% undervalued 21.70% 24.64
    Consumer Durables 0.43% 3.29% 16.23% 8.18% undervalued 22.90% 19.69
    Health Care 0.77% 3.13% 22.70% 10.33% undervalued 5.44% 20.61

     

     
     
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    ValuEngine.com - Rational advice, smarter investing.
     
     
     


    Disclosure: no positions
    Themes: airlines Stocks: AAL, AAL
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