Coronavirus Is Punishing Airline Stocks. It Might Be an Opportunity to Buy.

[NewsFeeder]

Coronavirus Is Punishing Airline Stocks. It Might Be an Opportunity to Buy.

Airline stocks are bearing the brunt of the markets’ coronavirus fears. But the sector isn’t losing money, yet.

https://finance.yahoo.com/m/22c9978...d5247/coronavirus-is-punishing.html?.tsrc=rss

 

[Bullitt]

I would never in my life buy an airline stock. Not even at this 'discount'.

Largest 15 day decline ever besides 9/11. These stocks will go lower as they most likely were not hedged for the oil drop. I'll bet airlines are paying 30-50% higher prices for fuel that they locked in via futures markets months ago.

 

[Tsunami]

Nothing to do with airlines but I like this idea of buying Fitbit here for a 20% profit per this article.
You'd have to tie up funds for 6 months or so, but with that much of a return it's worth it as long as Google doesn't withdraw the offer.
https://seekingalpha.com/article/4331594-buy-fitbit-and-kemet-now-for-30-annual-return

 

[Bullitt]

Biggest two days for TSA since March 25th. There are likely bargains in the rubble, but there is just too much uncertainty in airlines. Insiders aren't showing much confidence either.

Still, a good chart to watch going forward.



https://www.statista.com/statistics/1107016/coronavirus-tsa-checkpoint-travel-numbers-us-airports/

 

[Bullitt]

Not looking good for AAL.

Boeing CEO Dave Calhoun said in an NBC interview on Tuesday that a U.S. airline bankruptcy is likely in 2020. It is a curious comment coming from an executive whose company sells to airlines, but Covid-19 has hit the industry particularly hard.

Looking ahead, Calhoun’s comment raises two questions for investors: which airline and is that bad for Boeing?

Southwest Airlines (LUV) and Delta Air Lines (DAL), which have the best balance sheets in the industry appear to be in the best position to weather the downturn. Investors appear to be most nervous about American’s ability to repay. Thus, its bonds are the costliest to insure.

https://www.barrons.com/articles/boeing-calhoun-airlines-bankruptcy-credit-default-swaps-51589294871

 

[Bullitt]

Another non-EV stock worth noting. UAL pushing ahead. 75's coming soon?

To think the great Warren Buffet sold out of his airlines in March....

 

[Bullitt]

Boeing also on the move now, ready to break to new one year highs like the airline sector already has. Luckily they did not need the bailout they requested in March.

BA and other airlines breaking out have implications for the broad market.