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Lufthansa cuts profit outlook

  • Lufthansa (DLAKY) revised its expected operating profit for 2014, to €1B ($1.4B) from €1.3-1.5B. The company also lowered its 2015 earnings target to €2B from €2.65.
  • The cuts were made due to an increase in competition from rivals in the Middle East, low cost carriers, and strikes on its passenger and cargo business.
  • Shares fell 9% following the statement.
Comments (1)
  • starcorral
    , contributor
    Comments (667) | Send Message
     
    Lufthansa drops, Malaysia Air drops orders, and Rolls/Airbus take a tumble. As my friend Harley might ask "UH --- Wuzzat mean?" This news could prompt one guy to shoot his dog and another to enroll in welding school. SO - how is thei relevant to my goals and plan of action?

     

    It means GE, Delta, and American can continue on the same way I do when I smell flatulence for 3 seconds on the expressway (wasn't me). And yet I was not in tears punching holes in sheetrock as my mind tried to grasp the $5,000 tumble this morning.

     

    Having weathered the experts when AAMRQ and LLC were kindergarten and gradeschoolers at best, I figure I'll trust the profit taking and panic selling will come with only minimal profane ranting. I survived my decision to sell GM months ago at $36.00 despite Kramer's rants about it's undervaluation (Hint: no word of Ford's).

     

    Bill Smead of Smead Value [SMVLX rated 5 star by morningstar] was recently asked about Chevron Corp. His response was "We believe that the oil business is losing its moat (competitive advantage)". This spawned headlines boiling down to "Sell Chevron". A day later Josh Peters of Morningstar Dividend Investor Newsletter acknowledged Chevron's moat, downplayed risk, and emphasized Chevrons commitment to dividends to reward shareholders "I like the stock". Of course healines now say "Buy Chevron".

     

    I came acrross this revelation reading Charles Jaffe's story in the Tulsa World June11, 2014. "LOOK PAST THE TIP [of the iceberg] TO SEE WHOLE STORY ON STOCKS".

     

    I think it is funny how people will risk their hard earned money based on a headline based on an opinion based on a comment made by a person who in someone elses' opinion is qualified to knowledgably comment while another similarly qualified individual makes a comment interpreted by someone else to the contrary. REALLY?????

     

    The only thing I know about Lufthansa is that they crash less often than the Luftwafta. And that is a good thing. The only thing I know about Malaysian Air is that I'm glad I don't fly it. Rolls Royce (Merlin motors for P51s and Spitfires)? Airbus (Scene from Speed with Sandra Bullock)? I own GE, Delta, and American. I credit my wisdom to my upbringing and those pivotal figures whose examples made me the man I am today "WHAT - ME WORRY?" (credit for quote: Alfred E. Neuman cartoon spokesperson for "MAD" magazine - no relation to "Mad Money").
    11 Jun 2014, 01:29 PM Reply Like
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