Southwest Airlines: Major Safety Net

Southwest Airlines reported mixed Q1 results as the coronavirus hit March revenues.
The airline now has access to over $13 billion of cash after raising an additional $3 billion of funds.
The company has reduced cash burn to ~$10 million.
The stock is a bargain at 7x normalized earnings, but the airline isn't the best deal in the sector.
Southwest Airlines (LUV) has seen a tepid rally following Q1 results as the company is poised to quickly wipe out the daily cash burn. The general airline industry was up over 10% on the quarterly news and bullish signs of reopening the economy and international travel with passenger tests. Unfortunately, this airline caused a self-inflicted wound by rushing out equity offerings when cash wasn't needed. Under $30, my investment thesis remains bullish on the stock while acknowledging that better upside exists in other sector stocks.
Read the full article on Seeking Alpha. 

Disclosure: Long AAL, UAL. Please review the disclaimer page for more details. 

Comments

Anonymous said…
Here's an update on another one of your special sits calls that seems absent from your shitty elementary school-level blog: https://www.reuters.com/article/us-stage-stores-bankruptcy/stage-stores-files-for-bankruptcy-as-pandemic-chokes-sales-idUSKBN22N08P

Just get the fuck out of the market. You're a moron who shouldn't be allowed to operate an E-Trade account, let alone spew faux "research" online. Go back to waiting tables, cunt.
Anonymous said…
I... have nothing to add. I couldn't have said it better myself.
Anonymous said…
If this piece of shit spent as much time researching the companies he writes about as he does.

This is why quantity < quality. He puts out many low content articles on meme stocks to boost a 'TipRanks' score. Real straight shooter.

Permanent loss of capital is real, Mark! But you just take a subscription fee so your dumbass wouldn't know anything about that.
Anonymous said…
**as he does on Twitter, maybe his opinion would be worth something.

Popular posts from this blog

Qihoo 360: Extreme Value Or Value Trap?

Camping World: Momentum Stinks