Wednesday, September 3, 2014

Best Airline Stocks To Invest In Right Now

If this is the year that airline stocks like United Continental Holdings (UAL), Delta Air Lines (DAL) and American Airlines (AAL) take off, JetBlue (JBLU) has been the exception that proves the rule.

While United Continental has gained 21% in 2014, Delta Airlines has risen 25%, Southwest Airlines (LUV) has advanced 27% and American Airlines has surged 48%, JetBlue has gained 4.6%.

But JetBlue’s stock is doing something that Delta Air Lines and the other carriers can’t do today: gain. Cowen’s Helane Becker and Conor Cunningham�explain why:

JetBlue announced the sale of LiveTV to Thales for $400MM. We believe the $400MM purchase price appears fair, based on past revenue generation; however, if LiveTV ends up generating +$150MM in revenues as Thales (HO, NR) expects, we believe the price paid is low given LiveTVs comps. We believe JetBlue will use the proceeds from the sale of LiveTV for working capital and to fund aircraft deliveries…JetBlue is expected to take delivery of nine aircraft in 2014 and has a backlog of 136 aircraft with Airbus and Embraer. We also expect JetBlue CAPEX to trend lower for as the company had expected 2014 CAPEX of $75MM related to LiveTV.

Best Construction Material Stocks To Invest In Right Now: Deutsche Lufthansa AG (LHA)

Deutsche Lufthansa AG is a Germany-based aviation company with global operations and a total of more than 400 subsidiaries and associated companies. The Company is engaged in passenger transport, airfreight and airline services. The Lufthansa Group operates in five major business segments: scheduled passenger air traffic (Passenger Airline Group) consists of Deutsche Lufthansa AG, Lufthansa CityLine GmbH, Swiss International Air Lines AG, Austrian Airlines AG, Air Dolomiti S.p.A., Eurowings Luftverkehrs AG and Germanwings GmbH; scheduled airfreight services (Logistics) consists of the Lufthansa Cargo group; maintenance, repair and overhaul (MRO) consists of the Lufthansa Technik group; information technology (IT Services) consists of the Lufthansa Systems group, and catering (Catering) consists of the LSG Lufthansa Sky Chefs group. On April 20, 2012, the Company announced the divestiture of British Midland Ltd. (bmi) to International Consolidated Airlines Group SA. Advisors' Opinion:
  • [By Jonathan Morgan]

    Deutsche Lufthansa AG (LHA), Europe�� largest airline by sales, advanced 3.1 percent to 15.52 euros as a gauge of travel and leisure companies posted the biggest gain of the 19 industry groups in the Stoxx Europe 600 Index. EasyJet Plc rallied after saying its fiscal third-quarter revenue climbed.

  • [By Tom Stoukas]

    Deutsche Lufthansa AG (LHA) and Allianz SE (ALV) led airlines and insurers lower, retreating at least 1.5 percent. Bayerische Motoren Werke AG (BMW) slid 1.6 percent. Deutsche Bank AG (DBK) rose after JPMorgan Chase & Co. boosted its recommendation on the shares. Gildemeister AG (GIL) added 3.4 percent after Deutsche Bank upgraded the maker of cutting tools.

Best Airline Stocks To Invest In Right Now: AMR Corp (AAMRQ.PK)

AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company�� principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.

American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American�� passenger fleet.

To improve access to each other�� markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines , British Airways, Cape Air, Cathay Pacific, China Eastern ! A! irlines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.

American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products an d services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.

The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.

Advisors' Opinion:
  • [By Insider Monkey]

    Last but not the least is US Airways Group (LCC), in which Y/Cap slightly increased its position, now owning around $7.9 million. U.S. Airways is currently on the minds of many investors, mainly due to its plans to merge with American Airlines parent AMR Corp (AAMRQ.PK). While European regulators approved the merger, the U.S. Department of Justice put a spoke in the wheel, and is trying to block the move. The companies filed a motion to the court to set the trial date for November 12. Amid these actions, U.S. Airways and American Airlines prolonged the outside date at which one of the companies can terminate the proposed merger.

  • [By Tom Sandlow]

    Synopsis: As a result of the terms of its bankruptcy and the proposed merger with U.S. Airways (LCC), an equity investment in AMR Corp (AAMRQ.PK) is equivalent to a series of derivatives on LCC. At current market values, AAMRQ is undervalued by approximately 40%. It is possible to create an arbitrage position that should capture this pricing differential over the next 6 months.

Best Airline Stocks To Invest In Right Now: Energie Holdings Inc (ELED)

Energie Holdings Inc, formerly Alas Aviation Corporation, incorporated on June 10, 2013, is in the process of acquiring, assembling and operating passenger airlines, air cargo and related ground service operators. The Company's business model includes purchasing low-scale regional operators then assembles and integrates them as subsidiaries. Corporacion Ygnus Air, S.A. (Cygnus) is a wholly owned subsidiary of the Company. It is engaged in acquisition discussions with several operators throughout Europe and around the world.

Cygnus is an aeronautical company is an integrated provider of air cargo transportation specializing in medium and long-range cargo routes. Cygnus operates a fleet of two Boeing 757-200PCF cargo jets to Europe and Africa. Cygnus has managed multi-plane operations, carrying both freight and passengers throughout Spain, Europe, the Middle East, Africa and the Americas.

Advisors' Opinion:
  • [By Peter Graham]

    Small cap stocks Wi-Fi Wireless Inc (OTCMKTS: WFWL), Energie Holdings Inc (OTCMKTS: ELED) and Trend Exploration, Inc (OTCMKTS: TRDX) surged 47.06%, 25% and 12.50%, respectively, last Friday. However, none of these small cap stocks appear to be the subject of paid promotions or investor relations activities ��something that could be a good thing for investors who are not traders. Keeping that in mind, are these three small cap stocks going to be winners over the long term? Here is a closer look to help you decide on an investing or trading strategy:

Best Airline Stocks To Invest In Right Now: Qantas Airways Ltd (QUBSF)

Qantas Airways Limited is engaged in the operation of international and domestic air transportation services, the provision of freight services and the operation of a Frequent Flyer loyalty program. The Company�� main business is the transportation of customers using two complementary airline brands: Qantas and Jetstar. It also operates subsidiary businesses, including other airlines, and businesses in specialist markets, such as Q Catering. The Company operates in four segments: Qantas Domestic, Qantas International, Qantas Loyalty and Qantas Freight. Qantas Domestic includes Australian domestic passenger flying business of Qantas Brands. Qantas International includes the International passenger flying business of Qantas Brands. Qantas Loyalty Operates the Qantas customer loyalty program. In April 2014, Qantas Airways Ltd announced that Westpac Banking Corporation and its associated companies ceased to be a substantial share holder of the Company. Advisors' Opinion:
  • [By MARKETWATCH]

    LOS ANGELES (MarketWatch) -- Australian stocks gave ground in early Friday trading, with banks broadly lower after overnight losses in the U.S., where investors worried that better-than-expected data would prompt the Federal Reserve to roll back stimulus soon. The S&P/ASX 200 (AU:XJO) lost 0.4% to 5,178.30, as National Australia Bank Ltd. (AU:NAB) (NAUBF) fell 1.8%, Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) lost 0.8%, and Macquarie Group Ltd. (AU:MQG) (MCQEF) retreated 1.3%. Among the resource shares, losses for gold both in New York and in early Asian electronic trade helped send Evolution Mining Ltd. (AU:EVN) (CAHPF) down 1.9% and Kingsgate Consolidated Ltd. (AU:KCN) (KSKGF) off 4.5%, though Newcrest Mining Ltd. (AU:NCM) (NCMGF) held the drop to 0.4%. Oil prices managed a modest gain, however, resulting in a 0.2% rise for Oil Search Ltd. (AU:OSH) (OISHF) and Karoon Gas Australia Ltd. (AU:KAR) (KRNGF) , while Woodside Petroleum Ltd. (AU:WPL)

  • [By MARKETWATCH]

    LOS ANGELES (MarketWatch) -- Australian stocks lost hold of early gains Monday. Retailer shares traded mostly weaker, but an advance for miners limited the losses after many base-metals futures rose on the back of better-than-expected U.S. jobs data. The S&P/ASX 200 (AU:XJO) slipped 0.1% to 5,182.40 after opening higher. In early moves, Myer Holdings Ltd. (AU:MYR) fell 0.7%, David Jones Ltd. (AU:DJS) (DVDJF) lost 1.1%, and Harvey Norman Holdings Ltd. (AU:HVN) (HNORY) traded 1% lower. In the mining space, BHP Billiton Ltd. (AU:BHP) (BHP) added 0.5%, Rio Tinto Ltd. (AU:RIO) (RIO) rose 0.7%, Alumina Ltd. (AU:AWC) (AWCMF) improved by 1%, and Oz Minerals Ltd. (AU:OZL) (OZMLF) jumped 2.2%. Shares of Qantas Airways Ltd. (AU:QAN) (QUBSF) rose briefly but then moved the flat line, holding firm after sharp losses last week. Chris Bowen, who serves as the Labor Party's shadow treasurer, said the struggling airline was "effectively" too big to fail. Meanwhile, shares of QBE Insurance Group Ltd. (AU:QBE)

  • [By MARKETWATCH]

    LOS ANGELES (MarketWatch) -- Stocks in Australia fell early Thursday, pressured by a drop in the country's currency to a three-month low below 90 U.S. cents, and by losses on Wall Street overnight on concerns about tapering of monetary stimulus. The S&P/ASX 200 (AU:XJO) fell 28 points, or 0.5%, to 5,246, led by losses in the heavily weighted financial sector. There, shares of Westpac Banking Corp. (AU:WBC) (WEBNF) lost 1.2%, National Australia Bank Ltd. (AU:NAB) (NAUBF) declined 1%, and Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) shed 0.7%. Shares of Qantas Airways Ltd. (AU:QAN) (QUBSF) sank 14% after the company warned it expects to post an underlying loss before tax of $250 million to $300 million for the six months ending Dec. 31. The carrier said trading conditions saw a marked deterioration, particularly in November with both passenger loads and yields "below the already negative trends for the year to date."

Best Airline Stocks To Invest In Right Now: Norwegian Air Shuttle ASA (NAS)

Norwegian Air Shuttle ASA is a Norway-based company active in the low-cost airline industry. It operates scheduled services with additional charter services. It has a route portfolio that stretches across Europe into North Africa and the Middle East, as well as Thailand and the US. The Company operates approximately 400 routes and over 120 destinations. It has a fleet of over 80 jet aircrafts, including Boeings 737-800, Boeings 787-8 Dreamliners, Boeings 737 MAX8 and Airbuses A320neo. It is the parent company of the Norwegian Group and operates through subsidiaries, including Norwegian Air Shuttle Polska Sp z o o, Norwegian Air Shuttle Sweden AB, Call Norwegian AS, NAS Asset Management Norway AS, among others. Advisors' Opinion:
  • [By GURUFOCUS]

    EMC�� products ��both hardware and software - are litearlly a geek�� wonderland alphabet soup, which include Storage Area Network (SAN), Network Attached Storage (NAS), Direct Attached Storage (DAS), Virtual SAN, All-Flash XtremIO, Atmos, Avamar, �Data Domain, Isilon, Pivotal, ViPR Software Defined Storgae, VMAX, VNX, VNXe, VPLEX, VSPEX (none of these are typos).� Information storage makes up 70% of revenues and virtualization 23% of revenues.� Products generate 55% of revenues.� Services generate 45% of revenues.� The Company�� gross profit split is approximaltey 67% data storage and 31% virtualization.

Best Airline Stocks To Invest In Right Now: Gogo Inc (GOGO)

Gogo Inc incorporated on December 14, 2009, is a holding company. The Company operates through its two operating subsidiaries, Gogo LLC and Aircell Business Aviation Services LLC. The Company provides in-flight connectivity and wireless in-cabin digital entertainment solutions. It provide turnkey solutions for passengers to extend their connected lifestyles to the aircraft cabin. It operates in two segments: commercial aviation (CA) and business aviation (BA). Its CA business provides in-flight connectivity and digital entertainment solutions to commercial airline passengers through their personal Wi-Fi enabled devices.

The Company provides Gogo Connectivity to passengers to nine North American airlines that provide Internet connectivity to their passengers. It provide Gogo Connectivity to passengers on Delta Air Lines, American Airlines, Virgin America, Alaska Airlines, US Airways, Frontier Airlines and Air Tran Airways. It also provide Gogo Connectivity to passengers on a small number of aircraft operated by United Airlines and Air Canada. As of September 30, 2011, the Company had equipped 1,177 commercial aircraft, representing approximately 85% of Internet-enabled North American commercial aircraft, which were operated on more than 4,200 daily flights.

The Company�� BA segment sells equipment and provides services for in-flight Internet connectivity and other voice and data communications under its Gogo Biz and Aircell branded products and services. BA�� customers include original equipment manufacturers of private jet aircraft such as Gulfstream, Cessna, Hawker Beechcraft, Bombardier, Dassault, Embraer, NetJets, Flexjets, Flight Options and CitationAir. It sells equipment for three of the primary connectivity network options in the business aviation market: Gogo Biz, through which it delivers broadband Internet connectivity over its (air-to-ground )ATG network, and the Iridium and Inmarsat SwiftBroadband satellite networks. As of September 30, 2011, the Company had m! ore than 700 Gogo Biz systems in operation and more than 4,600 aircraft with Iridium satellite communications systems in operation, and it has sold more than 100 Inmarsat SwiftBroadband systems. It provides in-flight broadband connectivity across the contiguous United States and portions of Alaska through 3 MHz of FCC-licensed ATG spectrum and its network of cell sites.

Through its Gogo platform, the Company provides passengers with a convenient and easy way to access the Internet, view video content, send and receive email and instant messages, and access corporate VPNs on Gogo-equipped commercial aircraft. It provides Internet access through Gogo Connectivity, on-demand streaming video offerings through Gogo Vision and access to a variety of free entertainment and service offerings, customized for each airline, through Gogo Signature Services.

The Company competes with Panasonic Avionics, Row 44, OnAir, LiveTV and Thales.

Advisors' Opinion:
  • [By John Udovich]

    The Iridium Communications, Inc. (NASDAQ: IRDM) fiasco about a decade ago might offer investors a cautionary tale about getting into small cap in-flight wifi stock Gogo, Inc. (NASDAQ: GOGO) too soon. Moreover, Gogo, Inc. just had an IPO, but Mad Money’s Cramer recently described that IPO as “horrible” and that "it's still bad” plus there are some issues with the company's in-flight wifi service itself.

  • [By Paul Ausick]

    Big Earnings Movers: Gogo Inc. (NASDAQ: GOGO) is up 28.3% at $24.05. Gulf Resources Inc. (NASDAQ: GURE) is up 15.8% at $2.46.

    Stocks on the Move: ViroPharma Inc. (NASDAQ: VPHM) is up 25.4% at $49.38 on a $4.2 billion buyout offer from London-listed Shire. Zalicus Inc. (NASDAQ: ZLCS) is down 72.3% at $1.30 on a failed drug trial.

  • [By Jake L'Ecuyer]

    Shares of Gogo (NASDAQ: GOGO) were on the rise as well, gaining 11.33 percent to $24.12, despite little news on the name.

    AeroVironment (NASDAQ: AVAV) was also up, gaining 19.50 percent to $37.92 after the company reported upbeat Q3 earnings.

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