CAL DAL best positioned airlines (video)

[jonjuan]

http://www.cnbc.com/id/31388273

Airline stocks have been having a rough month. Earlier in June the International Air Transport Association estimated that global carriers could lose $9 billion this year due to rising fuel prices and weak demand.

That one little tidbit sent shares tumbling as you can see from the chart below.

"Investors in the airline industry are so sensitive to any new data point that may change the outlook or prospects for recovery," explains Majestic Research analyst Matt Jacob, referring to the IATA data.

However, not all airline stocks may be created equal, at least according to Stifel Nicolaus airline analyst Hunter Keay.

Although he has a hold on American [AMR 4.49 0.06 (+1.35%) ], United [UAUA 3.82 0.09 (+2.41%) ] and Southwest [LUV 6.43 -0.05 (-0.77%) ] he also thinks two airlines are buys.

You read that right -- buys!

Keay has buy ratings on Continental [CAL 9.34 0.43 (+4.83%) ] and Delta [DAL 6.16 0.06 (+0.98%) ]. "Those two are the blue chip of the large carriers in the United States," he says.

We were so intrigued we invited him to join us on Fast Money. We learned Keay's bullishness on these two airlines is kind of a "Last of the Mohicans" trade.

"If the economic downturn stays this bad over the next 6-9 months I think we could see a liquidity crisis in the space," explains Keay. "Continental and Delta have the best cash positions on the balance sheet right now."

In other words, if the economy foces some airlines to go out of business Continental and Delta should be survivors and the beneficiaires.

We thought you'd want to know. To see our entire interview with Hunter Keay please watch the video.

 

[BID]

http://www.cnbc.com/id/31388273

Airline stocks have been having a rough month. Earlier in June the International Air Transport Association estimated that global carriers could lose $9 billion this year due to rising fuel prices and weak demand.

That one little tidbit sent shares tumbling as you can see from the chart below.

"Investors in the airline industry are so sensitive to any new data point that may change the outlook or prospects for recovery," explains Majestic Research analyst Matt Jacob, referring to the IATA data.

However, not all airline stocks may be created equal, at least according to Stifel Nicolaus airline analyst Hunter Keay.

Although he has a hold on American [AMR 4.49 0.06 (+1.35%) ], United [UAUA 3.82 0.09 (+2.41%) ] and Southwest [LUV 6.43 -0.05 (-0.77%) ] he also thinks two airlines are buys.

You read that right -- buys!

Keay has buy ratings on Continental [CAL 9.34 0.43 (+4.83%) ] and Delta [DAL 6.16 0.06 (+0.98%) ]. "Those two are the blue chip of the large carriers in the United States," he says.

We were so intrigued we invited him to join us on Fast Money. We learned Keay's bullishness on these two airlines is kind of a "Last of the Mohicans" trade.

"If the economic downturn stays this bad over the next 6-9 months I think we could see a liquidity crisis in the space," explains Keay. "Continental and Delta have the best cash positions on the balance sheet right now."

In other words, if the economy foces some airlines to go out of business Continental and Delta should be survivors and the beneficiaires.

We thought you'd want to know. To see our entire interview with Hunter Keay please watch the video.

I am sorry, but I am still going to believe the General, CAL is in much worse shape than Delta due to our, "fuel hedges".

 

[General Lee]

I am sorry, but I am still going to believe the General, CAL is in much worse shape than Delta due to our, "fuel hedges".

You got that right. It sure doesn't help you as much.

Bye Bye--General Lee

 

[Superpilot92]

good video thanks for posting it.

 

[Raskal]

Anyone who recommends airline stocks with anything other than a "run like hell" rating needs to be drug tested.

 

[jmreii]

If a investor buys stock in a airline for tax write-off purposes its understandable, any other reason would be you own fault if it does not work out. Absolutely, positively no bailouts.

 

[EMBpilot]

Thank for sharing!

All true, but you got to remember that CAL pilots are willing to work for virtually no rules and 20-30% lower pay so it makes CAL more competitive.

 

[Kugelblitz]

You got that right. It sure doesn't help you as much.

Bye Bye--General Lee

We all just wish we could be Delta pilots but alas, we just aren't that special "breed" that allows one to be a Delta hat enforcing pilot. Gee, you guys are really, really great!

 

[EWR_FO]

http://atlanta.bizjournals.com/atlan...html?ana=yfcpc

Delta's Bastian sells more stock; sales total $1.4M since Oct. 31

Atlanta Business Chronicle - by J. Scott Trubey Staff Writer


The president of Delta Air Lines Inc. sold $344,000 worth of shares in the company’s stock Tuesday, a matter of weeks after he sold shares worth more than $1 million, according to Securities and Exchange Commission filings.


Between stock sales on Oct. 31 and Tuesday, Ed Bastian has sold about 150,000 shares of Delta stock for nearly $1.4 million.


Bastian, who also has taken on the role of CEO of Northwest Airlines Corp. since the carrier’s acquisition by Delta, sold 50,000 shares Tuesday at a value ranging from $6.855 to $7.01 per share.


On Oct. 31, Bastian made $1.04 million in a stock sale just days after he and many other Delta executives earned lucrative stock bonuses following the carrier’s acquisition of Eagan, Minn.-based Northwest, government documents show.


A Delta spokeswoman declined to comment on the stock sales.
Atlanta-based Delta (NYSE: DAL) finalized its merger with Northwest Oct. 29 following clearance by federal regulators. Northwest operates as a subsidiary of Delta. The combination of the carriers into a single airline is expected to take about two years.


As reported by Atlanta Business Chronicle Nov. 5, Bastian and other Delta executives who helped execute the acquisition of Northwest sold hundreds of thousands of shares of stock in the days after wrapping up the deal, according to recent SEC filings.


New Delta Chief Financial Officer Hank Halter sold more than 64,000 shares worth about $694,000 ($10.75 per share). Mike Campbell, executive vice president of human resources and labor relations, sold 65,719 shares for $736,000. Glen Hauenstein, executive vice president for network planning and revenue management, sold 20,000 shares for $230,000.


Delta CEO Richard Anderson, Bastian, Halter, Campbell, Hauenstein and several other top officers with Atlanta-based Delta and Eagan, Minn.-based Northwest received stock and vested stock options worth tens of millions of dollars combined.


As previously reported, Delta (NYSE: DAL) said it would give employees a total of about 15 percent of the company’s stock. In an SEC filing, the airline said about 10 percent of all diluted shares went to frontline and corporate employees.


About 600 to 700 corporate officers received the remaining employee stock share (about 3.5 percent), according to the filings.

 

[General Lee]

http://atlanta.bizjournals.com/atlan...html?ana=yfcpc

Delta's Bastian sells more stock; sales total $1.4M since Oct. 31

Atlanta Business Chronicle - by J. Scott Trubey Staff Writer


The president of Delta Air Lines Inc. sold $344,000 worth of shares in the company’s stock Tuesday, a matter of weeks after he sold shares worth more than $1 million, according to Securities and Exchange Commission filings.


Between stock sales on Oct. 31 and Tuesday, Ed Bastian has sold about 150,000 shares of Delta stock for nearly $1.4 million.


Bastian, who also has taken on the role of CEO of Northwest Airlines Corp. since the carrier’s acquisition by Delta, sold 50,000 shares Tuesday at a value ranging from $6.855 to $7.01 per share.


On Oct. 31, Bastian made $1.04 million in a stock sale just days after he and many other Delta executives earned lucrative stock bonuses following the carrier’s acquisition of Eagan, Minn.-based Northwest, government documents show.


A Delta spokeswoman declined to comment on the stock sales.
Atlanta-based Delta (NYSE: DAL) finalized its merger with Northwest Oct. 29 following clearance by federal regulators. Northwest operates as a subsidiary of Delta. The combination of the carriers into a single airline is expected to take about two years.


As reported by Atlanta Business Chronicle Nov. 5, Bastian and other Delta executives who helped execute the acquisition of Northwest sold hundreds of thousands of shares of stock in the days after wrapping up the deal, according to recent SEC filings.


New Delta Chief Financial Officer Hank Halter sold more than 64,000 shares worth about $694,000 ($10.75 per share). Mike Campbell, executive vice president of human resources and labor relations, sold 65,719 shares for $736,000. Glen Hauenstein, executive vice president for network planning and revenue management, sold 20,000 shares for $230,000.


Delta CEO Richard Anderson, Bastian, Halter, Campbell, Hauenstein and several other top officers with Atlanta-based Delta and Eagan, Minn.-based Northwest received stock and vested stock options worth tens of millions of dollars combined.


As previously reported, Delta (NYSE: DAL) said it would give employees a total of about 15 percent of the company’s stock. In an SEC filing, the airline said about 10 percent of all diluted shares went to frontline and corporate employees.


About 600 to 700 corporate officers received the remaining employee stock share (about 3.5 percent), according to the filings.

I heard one of those guys just bought a new million dollar condo in Park City. I bet they all want to do that---prices have dropped and now is the time to buy property or homes. It doesn't make it right, but I bet they are doing that.


Bye Bye--General Lee

 

[General Lee]

We all just wish we could be Delta pilots but alas, we just aren't that special "breed" that allows one to be a Delta hat enforcing pilot. Gee, you guys are really, really great!

Finally you guys see that.......wind check please....


Bye Bye--General Lee

 

[EWR_FO]

I heard one of those guys just bought a new million dollar condo in Park City. I bet they all want to do that---prices have dropped and now is the time to buy property or homes. It doesn't make it right, but I bet they are doing that.


Bye Bye--General Lee

Mike Campbell did the same thing at CAL before the price dropped with a negative announcement, I'm sure it's a coincidence.

 

[General Lee]

Mike Campbell did the same thing at CAL before the price dropped with a negative announcement, I'm sure it's a coincidence.

Maybe he is using his money windfall with us to short your CAL stock? I just DON'T think your current schedule is going to remain the same this Fall and Winter (just like ours). But hey, keep on believin......


Bye Bye--General Lee

 

[EWR_FO]

Maybe he is using his money windfall with us to short your CAL stock? I just DON'T think your current schedule is going to remain the same this Fall and Winter (just like ours). But hey, keep on believin......


Bye Bye--General Lee

You do understand that his "windfall" is coming at your expense, right? Hoping other companies do shi**ier than yours is a great business plan. Reading the $hit that comes from you is like reading about two high school kids arguing about who's football team is better.

 

[Captain X]

anyone who recommends airline stocks with anything other than a "run like hell" rating needs to be drug tested.

+1000

 

[BID]

Maybe he is using his money windfall with us to short your CAL stock? I just DON'T think your current schedule is going to remain the same this Fall and Winter (just like ours). But hey, keep on believin......


Bye Bye--General Lee

This summer, our loads are already 5 % higher than last year. Latin America market is also doing well for us.

You guys have been very aggressive with the increase in international capacity. Our EWR to EDI route is strong. What are the plans for Delta's JFK to EDI? What about ATL to PVG? It is a shame we didn't get that route years ago. What about your India service out of NYC? See a trend here? DAL ad CAL are not as similar as you think. You need to, "right size" your airline, we do not. If it gives you some form of justification, wishing we also cut our international capacity, well than keep on believin ....

 

[JustaNumber]

"CAL DAL best positioned airlines"

Of course, after 9/11 all the experts said the exact same thing about Delta's cash position. Investing in DAL at that time might not have been such a good idea, though, as things change quickly in this industry. Remember after the USAir/AWA merger, they were the darlings of the industry with the brightest future. Management quality and sound business practices were practically ignored. Not to mention about two years ago 100% of the "experts" predicted the housing market would hit bottom and start recovery by mid 2008, first quarter 2009 at the absolute latest. "Experts" are almost useless in today's economy.