Definitely not-for-the-squeamish Delta Air Line's (DAL) stock has plunged in bear-hug fashion during the winter to $9.80 from $14.70, and is now dangerously close to the sell/stop loss at $8.

Delta Air Lines, first discussed here on July 19, 2010, at a price of $10.73, would likely have been a leader of a rejuvenated airline sector until Middle East unrest, including the ongoing civil war in Libya, sent oil prices above $105 per barrel. That crude surge has pushed jet fuel prices -- typically the second biggest or biggest expense for an airline -- substantially higher.

Continue reading Has Delta Air Lines Bottomed at $10?

Has Delta Air Lines Bottomed at $10? originally appeared on BloggingStocks on Fri, 01 Apr 2011 10:30:00 EST. Please see our terms for use of feeds.

The U.S. airline sector, aided by decreased capacity from mergers, is on course to record one of its best years in many, and Delta Air Lines (DAL), first discussed here on July 19, 2010, at a price of $10.73, may be the leader of the pack.

Nevertheless, keep in mind that I consider Delta to be a high-risk stock not suitable for moderate-risk or low-risk investors. Don't consider DAL if you can't tolerate a 30% to 50% drop in the stock's price: it could happen.

In fact, Delta's share have declined about 22% since hitting highs near $14.70 last autumn; the pullback follows a rise from about $9.50.

Continue reading Delta Air Lines: Set to Soar in 2011?

Delta Air Lines: Set to Soar in 2011? originally appeared on BloggingStocks on Wed, 02 Feb 2011 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Delta CEO Sells Stock: No Signs of Turbulence Ahead

Delta CEO Sells Stock: No Signs of Turbulence Ahead originally appeared on BloggingStocks on Tue, 18 May 2010 09:00:00 EST. Please see our terms for use of feeds.

Delta Air Lines Inc. (DAL) said Thursday that it was one step closer to completing its merger with Northwest Airlines, which will create the world's largest air line by passenger traffic.

The two carriers received Federal Aviation Administration (FAA) authorization to operate as a single carrier. They can now fully combine flight numbers, schedules and ticketing under the Delta name. The air lines have already integrated many operating procedures, including the use common technical manuals.

Continue reading Delta-Northwest Merger Prepares to Take Flight

Delta-Northwest Merger Prepares to Take Flight originally appeared on BloggingStocks on Thu, 31 Dec 2009 15:30:00 EST. Please see our terms for use of feeds.

Delta Air Lines (NYSE: DAL) was on the upswing Monday after the firm raised its forecast for third-quarter margins. The airline issue now expects operating margin of 3% to 4% for the current quarter, compared to its midsummer outlook of 1% to 3%. Third-quarter fuel prices are now expected to average $2.14 per gallon, down from a prior prediction of $2.17.

The update comes courtesy of a regulatory filing, wherein Delta noted that many of its financial metrics are improving on both a sequential and a year-over-year basis. Load factor for September and October is pegged at 82%, narrowly above last year's level. Meanwhile, revenue per available seat mile is expected to decline in the third quarter, but less so than in the second quarter.

Continue reading Delta Air Lines call volume rises after 3Q update

Delta Air Lines call volume rises after 3Q update originally appeared on BloggingStocks on Mon, 14 Sep 2009 11:40:00 EST. Please see our terms for use of feeds.

Continental Airlines (NYSE: CAL) just got the relief it needs to compete. Despite resistance from the Department of Justice (which can only recommend), the Department of Transportation has granted the airline immunity from antitrust laws. This clears the way for Continental to work with United Airlines (NASDAQ: UAUA) -- and other carriers -- on international routes. Now, the airline can join Star Alliance, which already has antitrust immunity.

At the same time, DOT approved a joint venture among Continental, United, Lufthansa (OTC: DLAKY) and Air Canada. This new relationship would involve trans-Atlantic routes.

Continue reading DOT overrides Justice, Continental Airlines wins antitrust relief

DOT overrides Justice, Continental Airlines wins antitrust relief originally appeared on BloggingStocks on Mon, 13 Jul 2009 14:20:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Citigroup upgraded Adtran (NASDAQ: ADTN) to Buy from Hold on expectations the company will benefit from the broadband Stimulus funds.
• Morgan Stanley upgraded Continental Airlines (NYSE: CAL) to Overweight from Equal Weight based on relative valuation and views the company as a "survivor." Additionally, the analyst lowered 2009 industry estimates but believes it is the last cut for the year and is incrementally more positive on the sector.
• Morgan Stanley also upgraded EXFO Electro-Optical (NASDAQ: EXFO) to Overweight from Market Weight based on valuation.
• Tata Motors (NYSE: TTM) was upgraded to Buy from Hold at Deutsche Bank.
• Ascent Solar (NASDAQ: ASTI) was upgraded to Neutral from Underweight at JP Morgan.
• Mechel Steel (NYSE: MTL) was upgraded to Neutral from Underperform at Credit Suisse.

Continue reading Analyst upgrades, downgrades and initiations: ADTN, CAL, EXFO, JCI, LUV, VAR, CSCO, KMT, EZCH

Analyst upgrades, downgrades and initiations: ADTN, CAL, EXFO, JCI, LUV, VAR, CSCO, KMT, EZCH originally appeared on BloggingStocks on Thu, 02 Jul 2009 09:50:00 EST. Please see our terms for use of feeds.

Continental Airlines (NYSE: CAL) is seeking immunity from antitrust laws to work more closely with United Airlines (NASDAQ: UAUA) and others on international routes. And, since airlines operate in a state of seemingly perpetual turmoil, what's the harm? According to the Justice Department: plenty.

The airline sought broad immunity as part of an effort to join Star Alliance, which includes US Airways, Lufthansa (OTC: DLAKY), and Air Canada -- along with United. Continental believes that it needs to join Star Alliance in order to remain competitive, especially with airlines that have this type of immunity already.

Continue reading Justice Department pushes back on Continental immunity request

Justice Department pushes back on Continental immunity request originally appeared on BloggingStocks on Tue, 30 Jun 2009 08:00:00 EST. Please see our terms for use of feeds.

Continue reading Delta to cut capacity by up to 8% in 2009, plans 'voluntary' job cuts

Delta to cut capacity by up to 8% in 2009, plans 'voluntary' job cuts originally appeared on BloggingStocks on Tue, 02 Dec 2008 15:05:00 EST. Please see our terms for use of feeds.

Stock Analyst C. Leonard Bauer told BloggingStocks Wednesday most airlines "merely seek to break even with their fuel hedges and caps, not profit from them."

Continue reading Oil hedges mean falling crude prices could hurt some airlines

Oil hedges mean falling crude prices could hurt some airlines originally appeared on BloggingStocks on Wed, 24 Sep 2008 12:55:00 EST. Please see our terms for use of feeds.

"If there's one sector that stands to benefit handsomely from a further slide in oil or, at least, a moderation in crude's rally: the airlines," explains energy sector expert Elliott Gue.

In The Energy Strategist, he says, "Airlines may make a terrible long-term investment but can be an outstanding short-term trade." Here he looks at Delta Air Lines (NYSE: DAL) and, for the even more speculatively-inclined, US Airways (NYSE: LCC).

"Some investors will rightfully cringe from any mention of this sector; after all, the airlines have consistently lost money throughout their post-deregulation history.

"Most of the majors have declared bankruptcy on multiple occasions since that time. However, we've traded the airlines on a few occasions; we took some triple-digit percentage gains in the airlines back in 2005.

"The airlines' leverage to oil prices is well known. Expectations are so low, in fact, that several major air carriers actually managed to beat consensus expectations in the second quarter.

"And although sentiment is already at rock-bottom, there's a real basis for cautious optimism. First, if I'm right about oil, fuel costs won't rise appreciably in the third quarter. This huge headwind is dissipating.

Continue reading Speculative flyers: Delta (DAL) and US Airways (LCC)

Speculative flyers: Delta (DAL) and US Airways (LCC) originally appeared on BloggingStocks on Tue, 05 Aug 2008 11:30:00 EST. Please see our terms for use of feeds.

As the second quarter earnings crunch begins in earnest this week, the bear market has investors jittery and prognosticators spinning out dire warnings. In the wake of mixed results from Alcoa (NYSE: AA) and General Electric (NYSE: GE) kicking things off last week, here's a look at what Wall Street is expecting from many of the companies scheduled to report this coming week.

Analysts surveyed by Thomson Financial are expecting the following companies to report a rise in earnings when compared to the same period of the previous year.

• Nucor Corp. (NYSE: NUE): $1.80 EPS (36.6%) on sales of $6.4 billion (+53.0%)
• Google Inc. (NASDAQ: GOOG): $4.74 EPS (24.9%) on sales of $3.9 billion (+41.6%)
• Nokia Corp. (NYSE: NOK): 56 cents EPS (23.2%) on sales of $19.9 billion (+17.8%)
• CSX Corp. (NYSE: CSX): 90 cents EPS (21.1%) on sales of $2.9 billion (+12.8%)
• Altera Corp. (NASDAQ: ALTR): 27 cents EPS (18.5%) on sales of $346.7 million (+8.4%)
• IBM (NYSE: IBM): $1.82 EPS (+17.6%) on sales of $25.9 billion (+9.0%)
• eBay Inc. (NASDAQ: EBAY): 41 cents EPS (17.1%) on sales of $2.2 billion (+18.0%)
• W.W. Grainger Inc. (NYSE: GWW): $1.46 EPS (17.1%) on sales of $1.7 billion (+8.0%)
• Microsoft Corp. (NASDAQ: MSFT): 47 cents EPS (17.0%) on sales of $15.7 billion (+17.0%)
• Honeywell International Inc. (NYSE: HON): 94 cents EPS (17.0%) on sales of $9.2 billion (+7.9%)

Continue reading The week in preview: Expectations as the earnings crunch begins

The week in preview: Expectations as the earnings crunch begins originally appeared on BloggingStocks on Sun, 13 Jul 2008 12:30:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Corporate advertisers are not flocking to YouTube despite the fact that the video sharing site attracts one billion views a day, upsetting Google Inc's (NASDAQ: GOOG) expectations for a strong revenue stream, according to the Wall Street Journal. Total ad revenue for Google this year will be about $200M from the site, where the company is counting on growth beyond its text ads from Web searches.
• A day after Microsoft Corporation (NASDAQ: MSFT) said it would be interested in reopening talks to acquire some of all of Yahoo! Inc (NASDAQ: YHOO) if Carl Icahn's proxy battle succeeds, the Wall Street Journal reported that Yahoo! CEO Jerry Yang accused Microsoft of "trying to destabilize" the company "without a real desire to complete a deal".

• The Atlanta Journal Constitution reported that Comair, a subsidiary of Delta Air Lines Inc (NYSE: DAL), is set to cut 300 pilots and 220 flight attendants from its staff. The paper said the layoffs will go into effect in September when Comair cuts its flight schedule as part of Delta's capacity cuts and will affect crew members based at Cincinnati/Northern Kentucky International Airport and New York's John F. Kennedy International Airport.

• Iran successfully test-launched a long-range version of its Shahab-3 missile, according to Iranian news service Al-Alam. The missile can reach U.S. military bases in the Persian Gulf and Israel.

Newspaper wrap-up: Google has a difficult time getting ad revenue from YouTube originally appeared on BloggingStocks on Wed, 09 Jul 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to people familiar with the matter, the Wall Street Journal reported that home-furnishings retailer Linens 'n Things, acquired by Apollo Management in 2006 and caught by a shrinking housing market and increasing debt load, is expected to file for Chapter 11 bankruptcy-court protection by Tuesday.

• The Detroit News reported that Delta Air Lines Inc (NYSE: DAL) pilots have agreed to a contract revision that clears the way for Delta and Northwest Airlines Corporation (NYSE: NWA) to announce a merger next week, according to sources close the matter.
• The United Auto Workers union notified General Motors Corporation (NYSE: GM) of its deadline to strike three factories in Michigan if the two are unable to agree on local labor pacts, the Detroit News reported.
• The Business Standard reported that Toyota Motor Corporation (NYSE: TM) is planning to invest Rs 1,400 crore in Toyota Kirloskar Motor, its India subsidiary to set up its second plant in the country.

Newspaper wrap-up: Delta pilots agree to changes, clears way for merger originally appeared on BloggingStocks on Fri, 11 Apr 2008 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Troubled savings and loan giant Washington Mutual Incorporated (NYSE: WM) will receive a $5B investment from private equity firm TPG and other investors, the Wall Street Journal reported. For now, this eliminates the possibility that it will be acquired by another financial institution such as J.P. Morgan Chase & Co (NYSE: JPM).
• The Wall Street Journal also reported that music downloading copyright infringement lawsuits against Baidu.com Inc (NASDAQ: BIDU) and Sohu.com Inc (NASDAQ: SOHU) may be heard by a Chinese court.
• People close to the situation said that Delta Air Lines Inc (NYSE: DAL) and Northwest Airlines Corporation (NYSE: NWA) have revived merger talks. It is speculated, the Financial Times reported, that weak demand and high fuel costs are urging the airliners back to the table to work out a merger arrangement.

• Evergreen Solar Inc (NASDAQ: ESLR) is expected to announce today that it will double the size of its manufacturing facility in Massachusetts and add about 350 new jobs as part of its ongoing expansion, according to the Boston Globe.

• Bloomberg reported that The Goldman Sachs Group Inc (NYSE: GS) has been the only major investment bank that has refused to reduce its leverage. In fact, Goldman's adjusted leverage ratio of assets rose to 18.6 at the end of February, from 17.5 at the end of November.

Newspaper wrap-up: TPG, others, to invest $5B Washington Mutual originally appeared on BloggingStocks on Mon, 07 Apr 2008 07:53:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Following the collapse of The Bear Stearns Companies Inc (NYSE: BSC), the industry is rampant with rumors wondering about the financial well being of scores of other institutions, according to a Wall Street Journal report called "The Credit Crisis Hits Wall Street". True or not, its giving fits to the companies, regulators, and investors.
• Skyrocketing fuel prices and a weakened economy are taking their toll on the airline industry, reported the Wall Street Journal. Additionally, the proposed Delta Air Lines Inc (NYSE: DAL) merger with Northwest Airlines Corporation (NYSE: NWA) has lost its momentum as airline pilots cannot agree on a structured seniority system.

• According to people close to the situation, the New York Times reported that before the end of the month, Citigroup Incorporated (NYSE: C) is planning to lay off another 2,000 investment bankers and traders.
• The Detroit News reported that Ford Motor Company (NYSE: F) appears to have fallen short of its goals in the latest, and possibly last, round of company-wide buyouts for hourly workers.

Newspaper wrap-up: More layoffs coming to Citigroup? originally appeared on BloggingStocks on Thu, 20 Mar 2008 07:55:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• To help stabilize the housing market, the Wall Street Journal reported that the Bush Administration is planning to help create fresh funding for mortgages. The plan, which still requires final approval, is said to ease an excess-capital requirement for government sponsored organizations Federal National Mortgage Association (NYSE: FNM), or Fannie Mae, Federal Home Loan Mortgage Corporation (NYSE: FRE), or Freddie Mac, and the Federal Housing Administration.
• The Wall Street Journal also reported that a merger between Northwest Airlines Corporation (NYSE: NWA) and Delta Air Lines Inc (NYSE: DAL) may be derailed after Delta pilots notified executives they remain unable to reach an agreement with Northwest pilots on how to integrate pilot ranks should the two combine.
• The Financial Times reported that BAE Systems Plc (OTC: BAESY) won a $715M order to supply nearly 1,500 mine-resistant vehicles from the U.S. government.

• The Chinese government has locked out Australian mining giants BHP Billiton Limited (NYSE: BHP) and Rio Tinto Plc (NYSE: RTP) from selling iron ore into its daily spot market, the Sydney Morning Herald reported. Mining sources said that the decision may have already cost Australia up to $300M in export profits.

Newspaper wrap-up: Bush plans more funds for mortgages originally appeared on BloggingStocks on Tue, 18 Mar 2008 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Pilots' seniority issue won't ground Delta / Northwest deal for long

Pilots' seniority issue won't ground Delta / Northwest deal for long originally appeared on BloggingStocks on Thu, 28 Feb 2008 15:20:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• A memo sent by Delta Air Lines Inc (NYSE: DAL) to the company's employees regarding Delta's merger talks with Northwest Airlines Corporation (NYSE: NWA) stated that that no "potential transaction meets all [of Delta's] principles." The memo, the Wall Street Journal reported, is seen as a sign that merger talks between Delta and Northwest have stalled.
• A group of 14 hospitals and the Securities Industry and Financial Markets Association, a Wall Street trade group, asked the SEC to buy back the debt they had issued, the Wall Street Journal also reported.
• German lender HSH Nordbank has filed a lawsuit against UBS AG (NYSE: UBS) for allegedly maneuvering to saddle the German bank with troubled securities. HSH Nordbank contends that UBS sold it $500M in complex investments, which a UBS hedge fund later used as a receptacle for troubled subprime-mortgage securities, according to the Wall Street Journal.

• According to FAO Newsroom, world fertilizer production is expected to outstrip demand over the next five years and will support higher levels of food and biofuel production.

Newspaper wrap-up: Talks between Delta and Northwest hit an impasse originally appeared on BloggingStocks on Wed, 27 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that KKR Financial Holdings LLC (NYSE: KFN), a unit of Kohlberg Kravis Roberts, revived concerns of a credit crunch after it asked for a restructuring of billions of dollars in short-term debt.

• According to sources, the Chicago Tribune reported that Deutsche Lufthansa AG (OTC: DLAKY) could look to take an equity stake in a merger between Continental Airlines Inc (NYSE: CAL) and UAL Corporation's (NASDAQ: UAUA) United Airlines.
• The Associated Press reported that the pilots' unions of Delta Air Lines Inc (NYSE: DAL) and Northwest Airlines Corporation (NYSE: NWA) are unable to agree on how seniority for the companies' pilots would work under a combined carrier. The impasse puts the deal in "serious jeopardy," inside sources reported.

• Electronics retailer Sharper Image Corporation (NASDAQ: SHRP) has filed for bankruptcy, citing declining sales and profitability, Bloomberg reported.

Newspaper wrap-up: Lufthansa could take stake in Continental, United combination originally appeared on BloggingStocks on Wed, 20 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.