Dec. 7, 2013, 10:30 AM
- Barron's top 10 stock picks for 2014 shows an affinity for low P/E ratios, with 6 of the group sporting multiples of 10 or lower. The 2013 picks - which are up 35.2% on average, 900 bps ahead of the S&P 500 - had five names with single-digit P/Es. This year's list:
- A depressed play on a depressed commodity, don't be surprised if Barrick Gold (ABX) gets the attention of an activist investor next year.
- Up just 11% YTD, Canadian Natural Resources' (CNQ) free cash flow is set to quintuple to $5B in 2018 once the Horizon oil-sands facility expansion is completed.
- A rising world population needs food. At less than 10x earnings, Deere (DE) is the kind of company Warren Buffett might like to buy if it became available. "Stranger things have happened," writes Andrew Bary.
- Even after gaining 55% YTD, MetLife (MET) sells for less than 10x 2014 EPS and just above book value, but bigger gains are ahead once the company is given regulatory permission to buy back stock and boost its dividend. Met's also a good hedge against rising rates, as life insurers will benefit by having higher yields to invest in.
- The rest: Citigroup (C), GM, Intel (INTC), Nestle (NSRGY, NSRGF), Simon Property (SPG), U.S. Airways (LCC).
Dec. 5, 2013, 3:00 PM
- The potential for American Airlines Group (AAL) is under-appreciated by the current equity values of American Airlines (AAMRQ) and U.S. Airways (LCC +1.9%), says JPMorgan's Jamie Baker.
- The analyst sees margins for the new carrier which will rival Delta's, although planned capex spending is a bit high compared to peers.
- AAL starts trading on December 9 unless a late legal challenge is posed.
Dec. 5, 2013, 6:57 AM
- The IATA reports global air traffic rose 6.6% in October to show an acceleration from September's mark.
- The markets in China and Russia paced the gains, up 12.3% and 11.4% respectively, while airlines in Latin America recorded the best improvement in load factor on tight capacity.
- Though airlines in North America only saw a moderate 3.6% rise in international travel, indications are that the business environment is improving.
- Related stocks: AAL, UAL, DAL, RYAAY, CPCAY, SINGY, CEA, ZNH, CPA, GOL, LFL, DLAKF, AIDIF, QUBSF.
Dec. 2, 2013, 2:01 PM
- The operations of U.S. Airways (LCC -0.8%) can squeeze out an extra $1B in financial gains as it cuts routes and consolidates strategically with American Airlines (AAMRQ), analysts forecast.
- The JFK-Heathrow and JFK-LAX routes in particular appear to have the potential to help profitability soar for the new combined airliner.
- What to watch: The two carriers will cease to trade after Friday in front of the debut of American Airlines Group (AAL) on the Nasdaq on December 9.
Nov. 29, 2013, 10:30 AM
- Airline stock are under-performing the market on some concerns of valuation and a new OPEC rift which could unsettle oil prices.
- The sector was due for a little trimming with it currently the third-best performing sector in the S&P 500 for the year on optimism that capacity discipline in the industry will stick.
- Decliners: Southwest Airlines (LUV) -1.4%, US Airways (LCC) -1.1%, Delta Air Lines (DAL) -0.8%, JetBlue (JBLU) -0.7%.
Nov. 27, 2013, 10:31 AM
- A U.S. bankruptcy court has signed off on a settlement between the DOJ and AMR (AAMRQ +2.3%) related to the latter's planned merger with US Airways (LCC).
- The settlement requires AMR and US Airways to divest a number of slot pairs gates at various U.S. airports. The biggest divestitures will take place Washington D.C.'s Reagan National and NYC's LaGuardia.
- The deal still needs the approval of a federal district judge.
Nov. 27, 2013, 3:23 AM
- AMR (AAMRQ) and US Airways (LCC) are due to find out today whether Bankruptcy Judge Sean Lane approves of their settlement with the Justice Department over their proposed merger.
- The DOJ had opposed the transaction until the airlines agreed to make concessions.
- The deal also needs the authorization of a federal district judge, who is accepting public comments until February 7.
Nov. 25, 2013, 3:09 PM
Nov. 25, 2013, 3:35 AM
- Hundreds of flights have been canceled due to a storm that has been dumping rain and snow across the south-western part of the U.S. after originating off the coast of California and then heading east.
- The storm is expected to combine with another one and then make its way up the east coast on Tuesday and Wednesday, and cause further disruption in what is one of the busiest weeks in the year for travel.
- AMR (AAMRQ) is one of the worst affected airlines, with others including Southwest (LUV), JetBlue (JBLU) and Delta (DAL).
Nov. 21, 2013, 4:49 PM
- American Airlines holding company AMR (AAMRQ -0.4%) sells $512M in 5.6% debt due 2020. The issue is secured by 75 American Boeing aircraft and is expected to receive B to B+ ratings.
- The notes will rank junior to the $1.4B in 4.95% debt the company sold in July, which is secured by the same pool of planes.
Nov. 15, 2013, 9:13 AM
- AMR (AAMRQ) and US Airways LCC say the new combined company formed by their merger will be called American Airlines Group.
- The carriers have applied with the Nasdaq to list the common stock of the company under the symbol AAL.
- Shares of AAL could trade before the end of the year if things so smoothly with AMR's bankruptcy proceedings.
Nov. 12, 2013, 12:10 PM
- AMR (AAMRQ +24%) soars upon settlement of the DOJ suit over its merger with U.S. Airways (LCC -0.6%).
- The two will divest 52 slot paris at Reagan National and 17 at LaGuardia, as well as two gates each at Logan International, O'Hare, Love Field, LAX, and Miami. Even with the divestitures, the new American is expected to generate net synergies of more than $1B beginning in 2015.
- IYT +0.6%.
- Press release.
Nov. 12, 2013, 10:59 AM| 3 Comments
Nov. 12, 2013, 10:25 AM
- Airline stocks are higher on chatter that a settlement between US Airways and AMR (AAMRQ) is close to being finalized.
- The industry for the most part would like to see the American-US Airways merger go through as it would make it easier to keep capacity discipline in line than if American emerged from bankruptcy as a feisty stand-alone.
- Advancers: US Airways (LCC) +2.7%, United Continental (UAL) +2.8%, Delta Air Lines (DAL) +1.7%, JetBlue (JBLU) +0.9%, Alaska Air Group (ALK) +0.9%.
- Related ETFs: IYT
Nov. 8, 2013, 6:51 AM
- A judge in the federal lawsuit filed by the DOJ against American (AAMRQ) and US Airways (LCC) says Southwest Airline (LUV) can file a brief in the case on why consumers would benefit if the airliners were forced to give up rights at key airports.
- The carrier is expected to make a run at landing slots at New York's LaGuardia and DC's Reagan National Airport.
Nov. 7, 2013, 10:25 AM
- US Airways (LCC +0.7%) and United Airlines (UAL +1%) have secured approval from the FAA to allow expanded use of electronic devices on flights.
- Some American (AAMRQ) flights and domestic Delta Air Lines (DAL +0.7%) flights are already operating under the new device rules.
- Several regional carriers, including Alaska Airlines ALK, are still working on their plans to be submitted to the FAA.
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