Analyst say don't buy airlines like UAUA or CAL because they are for professionals?
Hmm why don't they want us retailers to buy them? Is it because these stocks will be earnings massive amounts of profits in 2009-2010? But they were not telling us not to buy between 2006-2008 when they were losing massive amounts of money. Back then they were saying buy buy buy.
Airlines could see more benefits from falling oil demand By Christopher Hinton Last update: 3:07 p.m. EDT March 12, 2009http://www.marketwatch.com/News/Story/Story.aspx?guid=
NEW YORK (MarketWatch) -- Falling oil prices have drastically reduced costs for airlines and have helped offset the loss of revenue from falling traffic demand, but the industry is now about to extract another fuel-cost benefit, according to a Thursday note from FTN Midwest analyst Mike Derchin. Crack spreads, or the difference between the price of oil and jet fuel, have narrowed considerably since last year's average of $25.50, Derchin said. That average fell to $21 in January, $15 in February and $6 in March. "Every $1 per barrel change [in the crack spread] is equal to close to $400 million annually," Derchin said. "If crack spreads end up averaging $10 less than last year, i.e., $15 per barrel, the airlines would save close to another $4 billion annually."