+ Watch DAL
on My Watchlist
The Company provides air transportation for passengers and cargo throughout the U.S. and around the world.
LUV and DAL. Two airlines with their stuff all together in one sock.
After decades of poor performance, airline stocks have a lot of things going for them. Oil price outlook looks very good; consolidation has created an oligopoly for majors; more people flying and cost cuts.
First airline company I consider when flying
I'm not quite sure why this stock is still a one star. It's been a one star for as long as I have been watching it. The company is solid, good earnings, good performance, improving customer service, and is paying down it's debt. I've been in it since just under $4 when it emerged from bankruptcy. At worst this should be a 3 star IMHO due to the volatility of the industry. Even that, IMHO, has been negated with the consolidation of the industry.
Run with the bulls.
More mergers = less competitionless competition = higher fareshigher fares = larger earningslarger earnings = higher share price
Looking at the Balance Sheet on March 18th, 2013, DAL has a negative book value of 2.131 billion, and a current ratio of .62What looks even worse though, is that of the 44.550 billion of "assets", almost 14.5 billion (32%) of this is Goodwill & Intangibles. DAL appears to be insolvent, yet incredibly the company has reached a 52 week high today of $16.48 This appears to be a perfect example of "market folly": as described by Warren Buffet...(No offence to George Soros...but billionaires make mistakes too...although perhaps he will cash out at a profit before it falls...). I made the "thumbs down" call on Nov 30, 2011 at $7.58, and am still 99% confident that this will be a very profitable "caps points" call...
Although I am employed in the airline business, which I love and probably will be for life, I know from this experience that aviation isn't exactly the most profitable business out there, if not one of the worst. Very, very competitive market out there with lots of risk and very few certainties.Still, Delta is one of the top world players and I think they will survive for many decades to come.But if you look at the rise of this one over the last couple of months, it's time for a step back.
The recent run-up seems unsupported by fundamentals. Oil prices likely can and will go higher. TSA delays and FAA furloughs may reduce traffic. Recent weather problems will hurt traffic. Delta continues trying to expand its already expansive routes, which is usually a recipe for capital loss in this space.
Delta is running a relatively lean business with little union interference. New York is prime territory for growth and current facility expansion there looks good, the "new" gate space at Heathrow could be the crowning touch. Oil continues to be a hurdle but can be managed with active price adjustments and like the oil business, quick to adjust up and reluctant to yield to downward pressure.
Delta suffers from the worst fuel efficiency of any airline. It suffers from lackluster customer confidence and has the oldest fleet of any major airline. It is reinvesting too slowly and its corner-cutting will continue to push it further behind competition.
Delta is firing on all cylinders. The employees believe in the company and the CEO, Richard Anderson has vision and a sincere desire to run a world class airline. Look for Delta to continue to gain market share.
Airlines exist to burn investor capital while jumping over each other to drive all their competitors' margins down to zero. Economic weakness and high fuel prices only exacerbate this trend. Delta is no exception.
Go Delta! I don't love this company, but as an Atlantan, I am required to root for them.
I understand this company is an airline.
Unedited excerpt from a CAPSCall article anticipated for publication on 02-MAY-2012:[A]ssume for a minute that Delta is successful in its quest to operate the refinery efficiently and turn it into its own private supply of cost-effective jet fuel. Think about that from an economics 101 perspective. By servicing its own demand privately with new capacity brought in from the now idle plant, it’d effectively be increasing the supply of jet fuel available on the market from other refineries. The refinery capacity that’s currently slated for Delta simply becomes available to service the other airlines, whose demand isn’t changing. Or in other words, if this works out for Delta, all the airlines benefit from a tighter crack spread -- but only Delta has to cover the purchase, investment, financing, and operating costs of running a refinery. It seems like the best case for Delta is an even better case for competition like United Continental (NYSE: UAL) that still gets its fuel the old fashioned way.Where’s the upside?Whether you look at it from the perspective of the facility itself, the economics of the refining industry, or the market implications if the plan is successful, there doesn’t seem to be a clear win for Delta. Running an airline itself is an incredibly difficult business where small fortunes are often made by starting with large fortunes. An investment like this with no clear path to a sustainable competitive advantage seems like yet another airline attempt to make a small fortune by starting with a large one.
they keep raising prices
Value stock bouncing back, next year should be kind although new legislation proposed may sink into baggage profits
Relative Bounce Likely Complete, Fall to Resume
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