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Morgan Stanley advises taking profits on airline stocks (FAA) after the impressive rally in the...

Morgan Stanley advises taking profits on airline stocks (FAA) after the impressive rally in the group with oil prices falling and fares holding. The sector is seeing a bit of a pullback today with United Continental (UAL -2.7%) and Delta Air Lines (DAL -1%) faltering the most, but performance is still strong for the year.
Comments (4)
  • Pony01
    , contributor
    Comments (292) | Send Message
     
    I would never claim to be more prescient than Morgan Stanley. However, I think the airline industry is going through a massive transformation that will allow them to trade at levels similar to other stocks in reference to earnings. I could list them all with Delta (refinery, 49% stake in Virgin Atlantic), USair/Amr merger (further industry consolidation, capacity discipline), United (getting sea legs after tough merger), but ultimately, I would miss much. And who would ever think that Southwest would trail Delta in 2012 in profit, operating margin, net margin, and PRASM! The chart shows a different picture as well. I believe there's still upside in the big three DAL, United and USAIR. I would temper my excitement in USAIR until after the merger takes place and American emerges from bankruptcy.
    11 Mar 2013, 11:19 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5915) | Send Message
     
    Well, (LCC) is a resistance.
    http://yhoo.it/Q3Urdh
    11 Mar 2013, 12:02 PM Reply Like
  • Pony01
    , contributor
    Comments (292) | Send Message
     
    Michael, explain this more...I'm in listening mode.
    11 Mar 2013, 01:58 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5915) | Send Message
     
    The graph says (LCC) hasn't gone above $15.20 all this year. Even the peak was below $15. Thus, it will have a hard time going higher.
    11 Mar 2013, 10:14 PM Reply Like
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