q=%24UAL&src=ctag&ref_src=twsrc%5Etfw">$UAL and positive corporate news.
-reached an agreement with Boeing and Wisk to enter into autonomous flight collaboration and settle litigation matters. -Midnight… pic.twitter.com/wUgEajcMD0— Stone Fox Capital (@Stonefoxcapital) August 11, 2023
The U.S. is set to reopen travel with the U.K. and the EU starting in November pending more details.
Atlantic departures remain down 50% from 2019 levels providing some of the best upside to recapture 2019 traffic levels.
Back in 2019, United Airlines had 43% of ASMs assigned to international travel.
The stock is cheap as a reopening of Atlantic traffic is a big part in the airline recapturing the 2019 EPS levels of $12 in a few years.
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While air travel demand cooled off during August, the regulations restricting international travel are on the verge of being relaxed. United Airlines Holdings (UAL) led domestic carriers in international travel prior to the COVID-19 restrictions on flying outside of the domestic market. My investment thesis is very Bullish on the stock after a big sell off leading into a reopening of international travel for the vaccinated.
Disclosure: Long UAL. Please review the disclaimer page for more details.
Update - Oct. 19
The airlines continue to report a strong boost in the business during 2022 while the stocks are still trading at the lows.
United Airlines (NASDAQ:UAL) shares trade up after the company reports positive Q3 GAAP net income of $0.5B and adjusted EPS of -$1.02, beats by $0.66.
Q3 capacity remains below 2019 levels at 28%, while total operating revenue is down 31.9% from the pre-pandemic level.
The company plans to capitalize on projected record flying levels in Europe by expanding international capacity by 10% in 2022 compared to 2019 levels while keeping domestic capacity flat. United notes that international margins are steadily improving.
"We're solidly on track to achieve the targets we set for 2022," said CEO Scott Kirby. "From the return of business travel and the planned re-opening of Europe and early indications for opening in the Pacific, the headwinds we've faced are turning to tailwinds."
Stocks to watch at week end: Lyft (LYFT) - the launch of Lyft Rentals isn't smart. The ridesharing service appears set to create another way to lose money. A prime benefit of the service is the door-to-door service where customers get a $20 ride credit each way. In essence, Lyft is giving away rides where the company already loses money in order to obtain what might only be a daily rental for $35. A lot of the service appears better for consumers, but the company is actually offering these ride credit discounts. Until Lyft can charge premium fees, avoid the stock. Canopy Growth (CGC) - the Ontario govt has approved a plan to license 20 stores a month starting next April. Canopy Growth expected 40 stores per month starting in January leaving a 300 store gap from expectations. This stock is still headed to $10. More research: Canopy Growth: Constellation Bid Appears Unlikely, For Now Stitch Fix (SFIX) - here comes the expected dip following another solid quarterly report.
Kohl's has activists wanting the company to spin off the e-commerce division to unlock value. The company already has plans to grow the business and activists have yet to show how a full omni-channel business can operate as two different companies. The stock is absurdly cheap at 7x EPS targets and Kohl's will repurchase over 15% of the outstanding shares this year. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street. Learn More » After an outstanding quarter with business booming, Kohl's ( KSS ) faces activists wanting to break up the business. The omni-channel retailer is facing the same pressure as other department stores to separate the e-commerce business in what amounts to financial engineering. My investment thesis remains very bullish on the retailer as the company reinvents the shopping experience. Read the full article on Seeking Alpha. Disclosure: Long KSS. Please read the disclaimer page for more details. Update -
Update - Mar. 27, 2023 Ouster missed a great opportunity to promote the combined business of Velodyne Lidar and Ouster and the company decided to pass. The stock trades below $1 for this reason and management has to own this incompetence. -Q4 GAAP EPS of -$0.23 misses by $0.03. -Revenue of $10.94M (-7.7% Y/Y) misses by $4.9M. -Secured company record $70 million in bookings in 2022 - Q1'23 revenue guidance of $15 to $17 million, excludes Velodyne revenues through merger close on Feb. 10. The Q4 revenue total was closer to $25 million and the Q1'23 pro-forma revenue total was probably closer to $21 million. Update - Mar. 15, 2023 Pretty nice deal here with 100 Lidar sensors shipped at the end of '22. Ouster shouldn't be trading back below $1. -Fieldin has already deployed dozens of kits at its customers’ farms and plans to deploy over 100 autonomy retrofit kits on tractors, each equipped with an Ouster OS1, to major customers across the United States in 2023. Ouster