Interesting video from American Airlines (AAMRQ) uploaded to YouTube saying the merger is "cleared for takeoff".
Anybody following this blog knows that Stone Fox Capital has been bullish on this merger with an investment in US Airways (LCC). As the largest airline in the world, the new American Airlines Group (LCC) should eventually claim the largest valuation as well.
Disclosure: Long LCC. Please review the disclaimer page for more details.
After a few rocky years with major accounting issues regarding taxes and major losses from an Iraqi contract, Weatherford International (NYSE: WFT ) finally appears on a path to success. The oil services firm famously shifted headquarters to Switzerland back in 2009 to reduce taxes and ended up paying a higher effective tax rate, then ran into issues requiring a restatement of taxes. All of those issues led to a major slump in the stock as 2012 ended.
In the latest quarter, the company showed improvements in operations with a focus on margins; the effective tax rate also dropped to an incredible low rate of 20%. Finally, Weatherford is on track and could achieve numbers comparable to other top oil service firms such as Halliburton (NYSE: HAL ) and Baker Hughes (NYSE: BHI ) . The inability to operate efficiently and generate strong margins has left Weatherford trading at industry-low revenue multiples, but a new plan to focus on core operations and debt reduction should close that gap.
Read the article here.
Disclosure: Long WFT. Please review the disclaimer page for more details.