Crocs: 5 Reasons To Be Very Bullish [View article]
Good article. My take is that they make shoes using mass production and low labor input. That allows them to maintain high margins as compared to the rest of the shoe industry. And by controlling downstream distribution, their future is not dependent on a single distributor. Their prices are cheap when compared to the rest of the shoe industry, so when middle and low income moms need shoes for their children, Crocs is a great choice. The rest of us Nike wearers cant figure out why anybody would buy these shoes.
Spirit Airlines: The Growth Story Is Now Recognized By The Market, Time To Sell [View article]
Sell? I am not sure Spirit has any real competition in the style and type of service it is trying to establish. At this time it enters markets at will and makes money almost immediately. Clearly, its service offering is far below other airlines, and that impacts repeat customers, but when you segment the different buyers of airline service, it has a solid following. With cramped seats, unbundled services and fees for weird things, the other airlines are both unwilling and unable to match what they are doing. But they still make money. Like Ryanair in Europe, it is developing its market and there appears no limit to their expansion. True, stock prices can get ahead of themselves, but growth is always the driver of higher and higher multiples.
Delta Air Lines (DAL) initiates a quarterly dividend of $0.06 a share and announces a $500M buyback plan. The carrier will return over $1B to shareholders in the next three years through the two measures. DAL +2.1% premarket. [View news story]
Ok, you got two "likes", so many believe the new consolidated airline industry is the same as the past? I don't think so. Yes bad things happen, sometimes, and a snow storm can cost an airline 20-100 million dollars, but todays players make many times that in profit today. Bad things are more and more baked into the landscape.
Delta Air Lines (DAL) initiates a quarterly dividend of $0.06 a share and announces a $500M buyback plan. The carrier will return over $1B to shareholders in the next three years through the two measures. DAL +2.1% premarket. [View news story]
I am pretty sure Warren Buffet is reconsidering his position on the airline industry this morning! Even Jim Cramer is coming around on the industry, though slowly.
Jetblue: The Airline That Still Can [View article]
As an investor, I am looking for the factors that most other investors miss. True story... I was checking into a hotel in Las Vegas last week, and the couple in front of me had Spirit Airlines tags on their bags. So asked them how they liked Spirit Airlines. The absolute first words out of his mouth was "it was not as good as JetBlue" ... That is what a Net Promoter score of 65 is all about. Southwest is dropping to about 58. Who is going to get the premium paying business in the future?
Jetblue: The Airline That Still Can [View article]
You left out the most important thing about JetBlue, customers love the airline. It has a Net Promoter score of about 65 that is a few points shy of Apple at 71 and way ahead of the other major airlines that are -5 to 7 .. people love JetBlue. In another survey, people are also so happy with JetBlue, that they are more willing to forgive them for mistakes.
One more comment, the title of this article focuses only on maintenance. Although higher, JetBlue has known this in guidance. Perhaps a better title would have mentioned Sandy up-front and the impact of events like hurricanes and snowstorms on JetBlues footprint. These events will continue, meantime JetBlue's expansion will shift the impact of these events as their footprint spreads.
JetBlue has been warning of increased maintenance expenses for over a year. It is just the clock as the planes age. Followers of the company also remember that JetBlue's primary airframe maintenance provider filed bankruptcy last year. Their engine contract is ok. JetBlue had to scramble to do heavy maintenance and probably paid inflated prices. This may actually turn into an upside possibility as the find providers at "normal" prices.
United's Operational Performance And Integration Progress In Focus [View article]
As a 1K on United, there are now two different service offerings, legacy United and legacy Continental. You can tell the difference. At this time it seems that the focus of United's efforts, as evidenced by the new $200 change fees, LIke the government, it is easier to get monies from the customers than to go to your own employees for improvements. How long can they continue to cut 1-2% of their capacity? The big guys have found this preferable, but in a competitive environment, this is not a long term solution. I am net positive about the stock, only because they are likely to capture some of the inefficiencies that still exist in the merger.
The squeaky wheel gets the grease as the U.S. House votes to approve a bill to end the furlough of FAA employees. Those that bought airline stocks (FAA) on Monday when overwrought reports of long delays at U.S. airports rattled the sector made a good call. [View news story]
Obama wins again! Republicans capitulate when the president screws the people.
Airline travel analysts think other carriers will match the $50 increase to $200 in United Continental's (UAL +1.3%) ticket change fee. Part of the rationale behind the change is to increase the incentive for business travelers to buy more expensive tickets with flexibility on ticket changes built in. Keeping up its lone wolf ways, Southwest Airlines (LUV +0.6%) will stick with its policy of no change fees. [View news story]
Is this the "Friendly Skies?" ... I think that the industry is ready to jump the shark with the imposition of penalty fees. Already the industry seems to only target only wealthy people.
Imagine that you are a family of four traveling on vacation and you get stuck in traffic on the way to the airport and have to rebook. that is now $800 you have to pay. Low income families wont take the risk and will exit the market.
BTW the stock is up on this news, so investors seem to think this fee will stick.
Penn West: A Play On Keystone Pipeline And Improving Commodity Prices [View article]
Money will drive these major projects forward. One positive about PWE and the Alberta energy industry is that pipelines will lower the transportation costs that will go to the bottom line. A negative is that the development of tar sands is far more expensive than other oil extraction technologies and if the price of oil drops, prices may drop below the cost of production as it did in the 1990s. Other articles on SA have cited PWEs ownership of land as a hidden asset, offset by the large amount of goodwill on their books.
20 Signs The U.S. Economy Is Heading For Big Trouble In The Months Ahead [View article]
Worn Out - Seniors getting less than 1% on their lifelong investments screwing younger people? I suggest you think about the implications of investors that planned for a 5% rate of return that are now less than 1%.. So far we are really screwed!
Crocs: 5 Reasons To Be Very Bullish [View article]
Spirit Airlines: The Growth Story Is Now Recognized By The Market, Time To Sell [View article]
JetBlue Airways Reports April Traffic [View article]
Delta Air Lines (DAL) initiates a quarterly dividend of $0.06 a share and announces a $500M buyback plan. The carrier will return over $1B to shareholders in the next three years through the two measures. DAL +2.1% premarket. [View news story]
Delta Air Lines (DAL) initiates a quarterly dividend of $0.06 a share and announces a $500M buyback plan. The carrier will return over $1B to shareholders in the next three years through the two measures. DAL +2.1% premarket. [View news story]
Jetblue: The Airline That Still Can [View article]
Jetblue: The Airline That Still Can [View article]
Higher Maintenance Costs Clip JetBlue's Profits [View article]
Higher Maintenance Costs Clip JetBlue's Profits [View article]
United's Operational Performance And Integration Progress In Focus [View article]
The squeaky wheel gets the grease as the U.S. House votes to approve a bill to end the furlough of FAA employees. Those that bought airline stocks (FAA) on Monday when overwrought reports of long delays at U.S. airports rattled the sector made a good call. [View news story]
Delta To Profit From Mergers [View article]
Airline travel analysts think other carriers will match the $50 increase to $200 in United Continental's (UAL +1.3%) ticket change fee. Part of the rationale behind the change is to increase the incentive for business travelers to buy more expensive tickets with flexibility on ticket changes built in. Keeping up its lone wolf ways, Southwest Airlines (LUV +0.6%) will stick with its policy of no change fees. [View news story]
Imagine that you are a family of four traveling on vacation and you get stuck in traffic on the way to the airport and have to rebook. that is now $800 you have to pay. Low income families wont take the risk and will exit the market.
BTW the stock is up on this news, so investors seem to think this fee will stick.
Penn West: A Play On Keystone Pipeline And Improving Commodity Prices [View article]
Other articles on SA have cited PWEs ownership of land as a hidden asset, offset by the large amount of goodwill on their books.
20 Signs The U.S. Economy Is Heading For Big Trouble In The Months Ahead [View article]