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  • Polaris: Shares Have 58% Upside Due To Upcoming Profit Margin Expansion [View article]
    Just for kicks, name me 5 "excellent" companies that have averaged a polaris 37% or so return on invested capital (without severe deviations--even in 08' 09') that trade for a polaris 15 p/e or less in today's market. What is the S&P 500 at? 20 p/e or more? I have no idea what the average 10 yr. return on capital is for the S&P, but I know it's not close to polaris'. . . . What am I missing here besides a connection to the oil rout?
    Nov 13, 2015. 08:45 PM | 1 Like Like |Link to Comment
  • Polaris Industries Is A Victim Of Its Own Success [View article]
    Considering that the crash of 08/09 was an illiquid panic the severity of which hadn't been seen in nearly 100 years, don't you think price comparisons to '09 are rather suspect when discussing price based on value? . . . I see these types of comparisons all the time. Not sure why people think that price comparisons to '09 are anything but pointless, especially without mentioning the metrics involved around that price. What is your "appropriate valuation"? Are those metrics the same as 2009? Should investors wait for a 5 p/e before buying PII?
    Nov 13, 2015. 08:19 PM | 1 Like Like |Link to Comment
  • Abraxas Petroleum says it is unaware of reason for stock slide [View news story]
    I suppose you meant to say SEC. What do they have to do with falling oil prices? You people with your short conspiracies . . . yawn. BTW short interest on AXAS is not high at all compared to the more leveraged players, not that it matters.
    Jul 23, 2015. 05:04 PM | 3 Likes Like |Link to Comment
  • Abraxas Petroleum says it is unaware of reason for stock slide [View news story]
    Perhaps forced selling due to non-marginability below certain stock prices. Anyway, that's what I've been thinking on this stock for the past couple weeks.
    Jul 23, 2015. 03:05 PM | Likes Like |Link to Comment
  • Scientific Games lands new contract with Oregon lottery [View news story]
    Short interest released today. Large just keeps getting larger. Up to 18 million shares now. Beginning of the year was 12 million. During the last dip to $10/share there was a 35% increase in short interest within a one month period. Those people haven't covered yet with stock presently at $16. This could get interesting.
    Jun 24, 2015. 06:33 PM | Likes Like |Link to Comment
  • United Airlines: An Analysis After The Sell-Off [View article]
    Any opinions out there regarding further consolidation possibilities? Bigs eyeing smalls? LCC or ULCC mergers? Other possibilities?
    May 23, 2015. 12:44 PM | 1 Like Like |Link to Comment
  • Why I Bought More American Airlines Today [View article]
    No offense intended to the author, but these are the types of articles on SA I could do without. Feels like a pure pump piece. No real info or insight that hasn't been hashed a thousand times before. More like an amateur blog, not an article. I don't mind bloggish type articles if they are somehow freshly written with a dose of insight or perspective, but this is just rehash.
    May 23, 2015. 11:03 AM | 2 Likes Like |Link to Comment
  • Scientific Games Corp.: Signs Of Stability Emerging [View article]
    And probably selling now. . . . Buy, hold, and wait for debt to decline. I think management is underselling (smartly) consolidation factor.
    May 21, 2015. 08:29 PM | Likes Like |Link to Comment
  • American Airlines: An Analysis After The Sell-Off [View article]
    What continues to intrigue me are the contradictions inherent in oil price effect on airlines. Just a couple months ago people were celebrating the windfall AAL would receive from lower oil. But last year I was worried what lower oil and higher margins would do to the competitive landscape and my fears have begun to play out.

    But I think it's a wash. Oil goes up: higher input costs but increased fares and restrained capacity. Oil goes down: lower input costs but cut fares and increased capacity. Bottom line: airlines are making money either way.

    Could AAL be bankrupt in a few years, once again? Perhaps. But it's WAY too soon to make that determination (think Larry Livingston and his treasure in the distance analogy); and with this type of precipitous price action , the market is trying to anticipate disaster. Sorry, too soon for that. If nothing else, there is a great short to medium term trade here. Not sure how much shortsellers are involved here--I doubt very much but hope they pile in. The faster this goes down the better. (Just stay capitalized, people!)

    Lots of sentiment involved here. And in my view, lots of opportunity in sentiment. i.e. AAL mispriced here. And will probably become more mispriced as negative sentiment builds through media attention. (Think aapl in 2013. NOT comparing aal to aapl, just pointing out the gifts that negative media give us.) Herd mentality in airlines up and down. Nothing short of a stampede happening as we speak.

    Next on radar: 1) May numbers from legacy carriers. 2) government response to mid-east airline inquiry. 3) June numbers. 4)earnings.

    What to completely ignore: 1) price of oil. 2) hedge fund 13f's adding or subtracting (can you say rear view mirror?!)

    May 21, 2015. 07:47 PM | 2 Likes Like |Link to Comment
  • American Airlines And Halliburton - Ultimate Pairs Trade To Hedge Out Oil [View article]
    I think your 1 year price chart comparison could be somewhat misleading. The dramatic decline in AAL in October 2014 is completely related to ebola events. Take out that dip and the story looks different. The beauty of AAL right now is that its stock has seen very little speculative benefit from the steep fall in oil prices. Many who bought AAL on short term oil speculation are getting burned and that's fine by me.

    I'm always looking to buy oil but I think this hedge line of thinking with AAL at these stock prices is wrong. When oil was at $100 I was fine with that, and I expressed it in some comments that I made in August about airlines, before the oil crash. I also expressed at that time that I was more worried about oil price deflation than inflation, even as I owned stock in airlines. SO MUCH money-losing chatter about correlations between airline stock prices and oil prices. Buy HAL because you like HAL and you want to commit capital to it, not to hedge AAL exposure to oil. I'm waiting for the month when oil surges and AAL surges right along with it.
    May 13, 2015. 03:05 AM | Likes Like |Link to Comment
  • Distractions Hindering American Airlines [View article]
    The conversation with the major airlines always seems to be about why their stocks are so undervalued on a p/e basis. We all keep throwing about the same reasons: debt load and negative perception of industry caused by historical realities. It will take time for those reasons to subside. In the meantime there is uncertainty and volatility.

    Stone fox's April 25 blurb had a title that explains why I'm relatively comfortable in airlines as opposed to the broader market. I think it will be a long time before those perceptions change, and I love that fact. To me it means an opportunity to slowly build longer term positions. It also means years of opportunities in the volatility that persists.

    For those afraid of the volatility, I think that is a mistake. Be prepared for the volatility. Expect it. Embrace it. And use it to your advantage.
    May 13, 2015. 01:11 AM | 1 Like Like |Link to Comment
  • North Dakota rig count at lowest level since November 2010 [View news story]
    If I read one more comment or read one more news headline or hear one more pundit remarking how oil is getting hit by a strong dollar I think I am going to *&&$#@! myself. When are people going to get it into their skulls that there is a very simple structural shift: U.S. oil production. That's it. It is not more complicated than that. This shift has effected many things, including the rise in the dollar. And for people who clamor that supply hasn't increased enough to change pricing fundamentals, you are missing one thing: potential supply. It wasn't there before. It is now.
    Jan 13, 2015. 12:18 PM | 2 Likes Like |Link to Comment
  • North Dakota rig count at lowest level since November 2010 [View news story]
    @ocean man . . . when Harold Hamm scrapped his hedges at $80bbl, he made a comment much like yours. But don't you see the irony? By saying that the oil price is wrong now, you are admitting that the oil price CAN be wrong. If oil prices can be wrong, why do you assume that the oil price was not wrong at $90?
    Jan 13, 2015. 09:06 AM | Likes Like |Link to Comment
  • Here comes the new airline ETF [View news story]
    Funny how Guggenheim etf shuts down just before airlines gain some traction. I've been hoping another wouldn't pop up but oh well. Could be a good hedge vehicle if you're inclined that way, but imagine shares will be hard to borrow.
    Jan 5, 2015. 06:57 PM | Likes Like |Link to Comment
  • Delta Air Lines: Hedging Gone Awry [View article]
    re:details on 10q, hedged E&P concerns do reveal detailed accounts of their hedge book.

    On a separate note, that 850 mill loss you mention would be through the entirety of 2015, not Q4 alone--assuming their book has downside protection below the 20% drop on that chart. Whether or not that protection exists is the type of transparency I would like to see Delta exercise. Jet fuel looks to be right at that 20% decline since $2.57. If it goes below that, shouldn't they at least post another chart for investors in an 8-k revealing figures below the 20% mark?
    Dec 5, 2014. 06:39 PM | Likes Like |Link to Comment