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Spirit Airlines: Pricing In Too Much Risk

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Spirit Airlines is down close to 50% from recent highs.
The airline will obtain a massive cushion from lower fuel costs with jet fuel down to $1.42 per gallon.
Global air travel rarely slows down based on virus outbreaks.
The stock is a bargain at below 5x normalized EPS estimates.
As the global coronavirus outbreak reduces travel, the domestic airline stocks are being hit hard. Spirit Airlines (SAVE) is now an incredible bargain after taking a $20-plus tumble in the last couple of weeks. The market has far too much fear over an airline with a rock-solid position.
Read the full article on Seeking Alpha. 

Update March 9, 2020
Jet fuel was down to $1.31 as of March 6 and will continue to fall. The lower prices are a huge benefit to the airlines like Spirit. The stock has held the lows from last Friday. 

Disclosure: No position. Please review the disclaimer page for more details. 

Comments

Mark_Holder_Is_A_Dolt said…
It is interest your SSI, UAL, LC, and countless other awful calls from SeekingAlpha are absent from your awful blog. It is also nice to see your other website got taken down, too. A real shame that turd got flushed. You were never a quality financial analyst. Now go back to your WorldCom fraud and Verizon manager job you feckless hack. GTFO
March 31, 2020 at 6:51 PM
Anonymous said…
Yes, this guy is a hack. If you want to lose money he is your boy.
April 4, 2020 at 11:28 PM
Anonymous said…
This comment has been removed by a blog administrator.
April 6, 2020 at 3:48 PM
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