Nearly Bankrupt Airlines: A Good Short [View article]
It appears that the economy as a whole is clearly on the mend. That should increase high margin business travel. Fuel prices are behaving well again contributing to increased margin. Iraq withdrawal is ongoing and that should also contribute to increased Military charter. All in all the fundamentals are improving and that is clearly reflected in the higher stock prices for the transport stocks. Perhaps if these stocks gain another 10-15% then shorting may be appropriate.
"Any other downsides?" Yes one big one, the underlying bonds are mostly junior unsecured debt that get totally if not almost wiped out in bankruptcies, witness HGM, XGM, GPM and so on.
AMR Corp.'s Pilots: Getting the Short End of the Stick [View article]
It is tragic that airline pilots who are some of the best paid for the least number of hours worked per month feel they are underpaid. It is this greed that must be stopped or else we risk driving yet another industry in deep trouble into the ground
Nearly Bankrupt Airlines: A Good Short [View article]
Bonds That Trade Like Stocks [View article]
Yes one big one, the underlying bonds are mostly junior unsecured debt that get totally if not almost wiped out in bankruptcies, witness HGM, XGM, GPM and so on.
AMR Corp.'s Pilots: Getting the Short End of the Stick [View article]