Continental Airlines ready to take off

Continental Airlines, Inc. (NYSE:CAL), like many of its competitors, has suffered through another year of stock declines. Hit by surging fuel costs and a slowing economy, the carrier's stock has declined by almost 50% since the beginning of the year. The airline has done a good job of diversifying revenue sources. More than 40% of revenue is coming from International routes. These routes have become the bread and butter for most carriers as they are typically full of business travelers. Many of my friends fly Continental to Tel-Aviv, Israel, and they also say that it's just packed with businessmen. With a growing global economy this should be a catalyst for Continental. If, and it's a big if, fuel costs decline, this will help drastically improve margins and the stock price will react in kind.

If you are looking at a way to play the global economic growth game, take a look at Continental.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position in any stock mentioned as of 12/19/07.