Out Fox The $treet

Update - March 6 No surprise the government is looking to block the acquisition by JetBlue. The question is whether the DoJ actually has the right to block the merger. Besides, Spirit shareholders are likely better off without a deal. Regardless, the stock has fallen to the yearly and covid lows as the market apparently doesn't understand Spirit is better off without JetBlue.  Regulators are reportedly looking to block the prospective merger between JetBlue Airways ( NASDAQ: JBLU ) and Spirit Airlines ( NYSE: SAVE ), sending shares of the latter sliding. Both the Department of Transportation and Department of Justice are looking to  halt the deal on the grounds that the merger would be anti-competitive, according to Bloomberg. Per prior media reports, executives from the carriers met with the DOJ in late February  in a "last-rites" meeting  to assuage regulatory concerns on the planned merger. That meeting followed  reports earlier in February  that the dep...

Government departments are lining up against the FTC case on Qualcomm. The only benefit of an FTC win on appeal is foreign smartphone competitors. Qualcomm remains on target to generate $7 to $8 in annual earnings per share. The stock has a logical path to reach a $100 target with risks that the wireless giant doesn't eventually win on appeal. Qualcomm  (NASDAQ: QCOM ) finds itself in an odd position of having different parts of the government fighting over how to handle an antitrust ruling against the wireless chip giant. The key thrust of why the wireless giant is likely to win on appeals is the threat to national security and the global nature of the wireless handset business in 2019. The  bullish investment thesis  remains right on track despite analysts  heading to the sidelines  on risk concerns. Read the full article on Seeking Alpha.  More commentary - Out Fox The $treet - July 22, 2019 Disclosure: Long QCOM, AAPL. Please revi...

Seeking Alpha provided this snippet where the T-Mobile (TMUS)/Sprint (S) merger is on hold again. T-Mobile ( TMUS   -1.9% ) and Sprint ( S   -3.6% ) are sliding off a new  Wall Street Journal  report that  merger talks have slowed , over conditions around the involvement of Dish Network ( DISH   +0.5% ) in the deal. Talks are ongoing, but the two wireless carriers are planning to extend their merger agreement beyond its July 29 deadline to buy more time, according to the report -- a second extension of a deal that has dragged out more than a year. A big part of the merger holdup is the requirement of the DOJ for a 4th viable wireless carrier to exist. For this reason, my prediction has long held that the merger will get blocked. Dish doesn't appear ready to step-up to the plate without major handouts and T-Mobile doesn't want the merger, if the end result is to create a strong 4th competitor. The prediction still remains that the merger gets blocke...

Airline stocks were beaten down last week on fears of a DOJ probe. The data suggests the probe is without merit, especially considering the PRSAM drop during Q2 for American Airlines. The airline sector remains incredibly beaten down, with American Airlines trading at a PE multiple of only 5. After an already weak year, airline stocks were beaten down last week by a probe from the Department of Justice, or DOJ. Anybody who owns an airline stock, and especially American Airlines Group (NASDAQ: AAL ) , is likely flabbergasted heading into the July 4th holiday weekend. The thought that American Airlines is colluding on capacity appears preposterous based on the big battle going on in Dallas between Southwest Airlines (NYSE: LUV ) and Virgin America (NASDAQ: VA ) . Read the full article at Seeking Alpha. Disclosure: Long AAL. Please review the disclaimer page for more details.

The surprising announcement on Nov. 12 that the Department of Justice, or DOJ, had agreed to a settlement allowing the merger of US Airways ( NYSE: LCC     ) and AMR Corporation ( NASDAQOTH: AAMRQ     ) to form the new American Airlines Group, with an expected close in December 2013. With this settlement in place and the merger proceeding, investors can now review three important numbers for the new American Airlines, which place the new company at very favorable multiples against industry leader  Delta Air Lines  ( NYSE: DAL     ) . Slot pairs manageable The DOJ agreement obliges US Airways and AMR Corp. to give up 52 slot pairs at Washington Reagan National Airport, or DCA, and 17 slot pairs at New York LaGuardia Airport, or LGA. The new American also has to divest two gates and related support facilities each at Boston Logan International Airport, Chicago O'Hare International Airport, Dallas Love Field, Los Angeles Int...

Unfortunately it doesn't appear that The Street video can be embedded, but it is very interesting to see the CEO of JetBlue (JBLU) make it clear that he wants access to the Reagan National airport. Remember that the Reagan National airport slots dominated by US Airways (LLC) and American Airlines (AAMRQ) are prime reasons for the DOJ lawsuit to stop the merger. It is clear that it would be very easy to transition some airport slots away from that merged entity in favor of JetBlue and probably just about every other domestic airline. The DOJ lawsuit just doesn't hold water as any airport that becomes non-competitive will quickly attract further airlines. See the video here . Disclosure: Long LCC. Please review the disclaimer page for more details. 

Earlier today, Alpha Natural Resources (ANR) announced that it had reached an agreement with the government to resolve the civil proceedings resulting from the Upper Big Branch (UBB) mine explosion that killed 29 people. This event happened at Massey Energy back in April 2010 and subsequently ANR bought out Massey.  The settlement for $209M hopefully allows ANR to move forward with less government scrutiny. One of the biggest issues with the coal miners in the Appalachian is higher costs from stricter regulations.  The stock initially jumped higher at the opening, but has settled back to a 3-4% loss. Having this issue resolved should be good for the stock going forward.  The $209M settlement includes money for the families of the killed and injured employees plus increased expenses on safety. The expenses are as follows: to invest $80 million over the next two years in added safety measures at legacy Massey mines and Alpha mines, including ongoing ...