But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
American Airlines’ shares are trading at an attractive valuation
We see American’s low valuation as an opportunity for long-term investors searching for stocks whose fundamentals and growth prospects over the medium to long terms are positive.
Apart from improved operational efficiencies, American has outperformed its peers in pre-tax margin (excluding special items) improvement in the first half of 2014 to 8.7% from 4.1% in the previous year.
Another reason why investors should consider buying American Airlines stock is that shareholders will benefit from higher returns in the form of dividends and share buybacks.
According to the U.S. Energy Information Agency (or EIA), high monthly crude oil production—combined with weakening demand—has caused Brent crude oil spot prices to fall.
American Airlines (AAL) has achieved strong PRASM (passenger revenue per available seat mile) growth of 4.5% in the first half of 2014.
American Airlines (AAL) regained its position as the leading airline of the the U.S. airline industry after merging with U.S. Airways. The following are the key highlights of the merger.
In this series, we’ll discuss why the ~25% share price decline since June was actually an opportunity for long-term investors to buy shares of American Airlines.
The share prices for major airline companies in the U.S. dropped substantially after the news of the first Ebola case in U.S. on September 30, 2014.
During fatal disease outbreaks, rules and restrictions are imposed—especially on air transportation. This includes canceling flights to the affected areas.
In the past few months, the number of flights reduced by ~37%. 216 of the 590 monthly flights scheduled to Guinea, Sierra Leone, and Liberia were canceled as of August 2014.
The Ebola Impact Index was constructed to measure Ebola’s impact based on the size of the potential Ebola outbreak. The GDP is the proxy for the quality of the country’s healthcare system.
Concerns about Ebola increased in the U.S. after September 30, 2014. Thomas Eric Duncan was the first person to be diagnosed with Ebola in the U.S.
With globalization and the growth of international trade, there’s a fear of infection during disease outbreaks. A shock in one economy spreads to other economies.
SARS was another disease outbreak in 2003. SARS caused a panic similar to the current Ebola outbreak. SARS was a viral respiratory illness.
The World Bank estimated Ebola’s impact by analyzing two scenarios—low Ebola and high Ebola. The scenarios are based on the probability of the disease spreading internationally.
According to the WHO, in this year’s Ebola outbreak there have been more cases and deaths than the combined reports from all the previous outbreaks.
The narrowing automobile sales in China have a significant impact on the shipping industry. They also affect oil demand.
For the week ending October 3, 2014, Canadian crude oil exports to the U.S. stood at 3.25 million barrels per day (or bpd).
For the week ending October 3, 2014, total products supplied were 19 million barrels per day (or bpd)—compared to 18.6 million bpd in the first week of September.
Historically, the U.S. has been the largest oil importer. However, U.S. production is surging due to a combination of horizontal drilling and hydraulic fracturing.