Airlines
Delta in a Bearish Pennant? Thoughts?However, I am overall bullish on Delta. I actually think this stock may drop even further especially looking back to 2012. Let me know your thoughts. It looks bullish on lower time frames.Untested levels from 2012 remain and it appears to be making a bearish pennant on 2D-Weekly. Let me know why you think this is bullish, because apparently everyone does.
Don't let the drastic price drop make you think we have hit a bottom. We would need a massive bull candle and if you see the higher levels that hasn't happened or any signal of a reversal.
$AAL EPS Projection = -$2.47 / Falling WedgeI will be looking for $AAL to follow this falling wedge downwards and likely lag till earnings. Earnings may cause more downside.
Wall Street Journal EPS Projection: -$1.83
More realistic EPS: -$2.47
I believe revenue projections are heavily understated as shown by Ford.
$UAL has quarterly revenues under 10 billion and predicted a revenue loss in march alone at 1.5 billion . $AAL I am betting will have lost more revenue than 1.5 billion in March.
If we take into account $UAL projecting losses of 1.5billion in March when their revenue is under 10 billion a quarter it is safe to say that $AAL would lose 1.5 billion in revenue as well, which is generous because they could have lost more.
Projected Revenues/Expenses/Net Income/EPS
Operating Expense for Q1: 10.157 billion
Operating Expenses for January: 3.386 billion
Operating Expenses for February: 3.386 billion
Operating Expenses for March: 3.386 billion
Operating Revenue for Q1: 10.757 billion
Operating Revenue for January: 3.585 billion
Operating Revenue for February: 3.585 billion
Operating Revenue for March if it were a normal month, based on trends: 3.585 billion
Non operating expenses: 158 million
Net income in January: 200 million
Net income in February: 200 million (generous)
Expected losses in revenue for March: 1.5 billion
Expected Operating revenue for March: 2.085 billion.
Net income in March: -1.3billion
200 mill + 200 mill -1.3billion - 158 million = -1.058 billion before taxes
No clue how this loss would be taxed, so let's just leave that alone, but this means their real net income after tax will be worse than -1.058 billion
-1.058 billion / 428.2million weighted outstanding shares = -$2.47 EPS or worse.
This is important because a normal falling wedge like this would break towards the upside, however if earnings are truly this bad I believe there may be more downside.
Different airlines, different leverges."The Senate's bailout package, which deals with the economic crisis caused by the coronavirus, will give airlines $25 billion in direct grants as long as they agree not to place any employees on involuntary furloughs or discontinue service at any airports they now serve until at least the end of September. Another $25 billion is available for loan guarantees."-- CNN
Four popular American Aviation industry leaders are under fire sale.. but which will hold till the end and outperform in your portfolio?
I made a fundamental comparison of these companies. mainly focusing on debt/bankruptcy risk.
What will happend to this second breakout? It seems like the price is trading on sentiment right now.
The Positives :
There is talk that the curve has been suppressed.
The worst in Spain and Italy seem to be over.
Austria is looking to relax the lockdown.
The Fog :
However, we miss fundamental news. That, if you know more about please let me know.
How soon will the airline be allowed to operate again? And where will they be allowed to fly to?
Will there be an effect on how many roundtrips can do due to more strict security measures.
What will demand be for airline travel?
How long did it take for airline travel to be back to normal after 9/11 ( I think quite some time).
Are they in need of a bailout?
If yes, who will pay for it? Will there be one for all EU airlines?
Range:
The 52 week high is 16 I think it will take quite some time before we go back to that high. Read "This stock will not pop overnight"
Southwest Short Due to price action and previous data points in similar market conditions there is likelihood this stock remains bearish for some time. Also, the recent stimulus plan did not include airlines in it. So until a bailout comes for the one or two people flights that are happening these companies Earnings will continue to go down and some airlines will go bankrupt. Being that Southwest is a stronger airline it will take a lot more to destroy it but will still be effected heavily by the current declining revenue coming into it.
Airlines Investment PlanAirlines are currently taking a beating and Throughput is decreasing drastically each day. At the beginning of March throughput via TSA was recorded at 2,280,522. On March 31st, throughput was recorded at 146,348.
68 TSA screening agents have tested positive for COVID-19 and Airlines will continue to suffer while throughput is low.
This makes for a great time to buy discounted shares in $UAL and $DEL
Plan:
Accumulate shares in Delta Airlines as well as United Airlines once a week or every $2 down for the time period that United Airlines and Delta are in their respective buy areas.
United Airlines and Delta will recover! The government will also likely bail them out!
Ask yourself this. 2 years from now what do you see the Airline Industry looking like? Are you willing to let your investment sit for 2 years?
If the bottom ends up being $5, great you likely were able to accumulate at $22.50, $20, $18, $16, $14, $12, $10, $8, $6 and more.
If the bottom ends up being $15, great you likely were able to accumulate at $22.50, $20, $18, $16 and more.
If the bottom is $23 you don't get a single buy-in, great you risked nothing. Do not purchase shares because you feel that you missed out on your target prices. Stick with your targets.
My goal is to get 5-20 buys of Delta/United in the buy area. If your unit size is $1000 each that is $5000-$20000 invested.
The goal is to hold these shares to a minimum of $45 each before I start exiting. I do not plan on exiting all at once.
Fly Leasing at a LowSimilar to most airlines stocks Fly Leasing is trading at all time lows. The part of interest that attracts me to FLY is their business model and market. They are well positioned to take advantage of their cash flow and low operations cost of leasing aircraft instead of operating them.
Testing Support Atlas Air Worldwide is currently testing a major supprt level on the daily chart. The potential for the stock the respect this level is highly probably. Looking to see a touch and break up would confirm support of zone. Waiting to ensure stock does not break below will prevent exposure to risk to the downside
AAL 10-Year LowAmerican Airlines is currently sitting at a 10-year low. Stock prices have not gone this low since 2008 financial crash which specifically was due to the housing market in the united states. As we trade near the low of the stock range we are testing near the support level. Potential for the stock to drop below the support level remains high as cashflow is dwindling for the airlines
Boeing's wild ride!The aircraft manufacturer has really gone through ups and downs coming into 2020.
Contributing to the recent declines have been the ongoing issues with the 737 Max crashes in 2019 which led to the FAA suspending the aircraft from flying hurting many airlines such as Southwest, United Airlines, and American Airlines. Also adding to the pain is the Coronavirus pandemic which has suspended all non-essential travel nationwide.
Boeing traded at a low of $89 on March 18th, 2020 and today traded (March 25th) at a high of $174.77 due to optimism amid congress passing a stimulus package that would grant passenger and carrier airline $58B in loan or loan guarantees from the federal government. Buyers who took advantage of the recent lows have already made 100% returns on the stock and Boeing pays of $8.22, that’s a 9.23% yield for those who bought when BA was trading at $89/share! NYSE:BA
Long Long Long TVIXBail Repo Market
Bail Euro Market
Bail America
Free Money for everyone!!!!!
None of these methods have done enough to quell investor's fear. And deservedly so. There is no end in sight to this CoronaVirus, unless the summer heat "magically" kills off the virus.
Prolonged stretches of forced social distancing and furthermore travel ban will affect the hotel industry, airline industry, taxi industry, cruise industry, etc. These are industries that employ millions of people globally and touch billions of people's lives in some way. To claim that a trillion dollar stimulus would solve this issue when there is no end in sight is laughable. The amount of money that would have to be printed to sustain American society would be in the trillions per month, let alone bailing out each affected industry. America, along with every other country, may be be forced to keep printing to avoid blood on the streets. And even when we manage to solve this CoronaVirus, the damage may be irreparable. Our money supply will have grown so much, yet consumers' purchasing power none. How are they to afford inflated prices? And why are banks still collecting on their loans? Shouldn't the first priority be to pause the expenses of the people, instead of maintaining the revenue of the banks? Maybe I am narrow minded, but I can only see more fear develop as market conditions and society worsens.
I believe TVIX will pass $1000, pass $1150, then $1300 and hopefully peak at $1500.
If by some chance TVIX reaches $2500, it's probably time to stop playing the market and buy a gun.
Please leave a comment on what you think on the current state of the economy and society. I'd love to hear different perspectives.
What will our future society look like? Are we going to move on to a new form of money through the IMF? Is bitcoin the answer?
Will we see a new form of governance? Is this the scenario that gets people to flip the board?
Air Canada 78.6% Fibonacci TestAir Canada chart for follower, JJ Kim. Price has fallen roughly -75% from the all time high in February as global airline stocks have taken an exceptionally hard hit during the coronavirus pandemic as global air travel has witnessed an extreme drop off as countries across the globe shut borders and restrict travel.
Price is currently testing and holding at the 78.6% Fibonacci level of the total range from the 2009 low to the 2020 high. The 78.6% Fib level represents a -78.6% pullback within the total Fib range. As long as price is trading below the 61.8% Fib level the price trend will remain bearish. Best move here is to wait and see if price can regain the 61.8% Fib level before buying, and from there a move back above the 50% fib level is needed in order for price to regain a positive trend. In the immediate short-term, price needs to hold above the 78.6% level to prevent further losses.
SGX:SIA - A very long descending triangleI dont like where SGX:C6L Singapore Airlines is heading. This is a very very very long descending triangle. SIA might have bottomed here or it might be facing tougher times ahead. I am leaning toward the latter and I would not catch a falling knife right now. Until there's a clearer picture, i would stay away.
Boeing BA - Opportunity of a lifetime?Flying from London to Barcelona for 20$?
Flying from Berlin to Rome for 15$?
Gone have the good old days of flat-rate flights. Travelling has once been a luxury and my impression is, that it will be a luxury again, very very soon.
I am not sure if Airlines such as Ryanair, Easyjet, Wizz Air, Scoot, Tigerair and even bigger, national Airlines are going to survive the Corona Virus.
In regards to climate change and our nature, Covid-19 may have hit our world at the perfect time.
Target for Boeing? 40$
Happy Trading!