Out Fox The $treet

Update - Dec. 28 Southwest has faced a brutal week over the Christmas holiday. The airline had a promising dividend return and a cheap stock heading into this disaster.  - According to FlightAware, Southwest has canceled over 2500 flights on Wednesday, adding to nearly 2700 cancellations on  Tuesday and thousands more on Monday.  The data provider has accounted for over 2300 cancellations planned for   Thursday as well. The levels of cancellations represent between 58% and 64% of scheduled flights per day in the three day span. Original article posted on Dec. 9 Southwest Airlines reinstated the dividend and the stock actually fell $2. The airline now offers a 2% dividend yield, far in excess of yields prior to COVID, despite paying the same dividend. The stock remains too cheap at 11x '23 EPS estimates that appear very conservative. The stock market is so negative on the airline sector that  Southwest Airlines  ( NYSE: LUV ) reinstating the d...

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...

The airline stocks took a hit today due to some weaker than forecast numbers from Southwest Airlines (LUV) . Investors need to avoid the urge to dump airlines like American Airlines Group (AAL) and United Airlines (UAL) .

Southwest Airlines exceeded Q3 estimates when excluding fuel hedges. The airline is trading at all-time highs with a very attractive valuation. The stock is not loved enough, especially considering the industry shifting down capacity growth heading into 2016. Not long ago, Southwest Airlines (NYSE: LUV ) helped trigger a major sell off in the airline sector. At the time, investors feared that the capacity additions of the airline were going to pressure profits. The fear that the industry was heading back to the one of irrational capacity additions of the past was foremost on investor minds. Read the full article on Seeking Alpha Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Barclays made a dramatic shift in the rating of Southwest Airlines. The stock traded under pressure all day despite the big gains in the stock market. Southwest Airlines isn't the most attractively priced airline stock, but it is the last stock investors should dump from a diversified portfolio. The news of the day in the airline sector was the big call of Barclays to underweight Southwest Airlines (NYSE: LUV ). The call was deemed negative and appeared bearish, but the analysts are actually forecasting a 15% gain for the stock. Read the full article at Seeking Alpha. Disclosure: Long AAL. Please review the disclaimer page for more details. 

Southwest Airlines plunged on fears of capacity additions. The market apparently over reacted to news of a slight capacity increase from previous expectations. The fears of a pricing war provide an opportunity to own one of the best airlines. The airlines were absolutely crushed during trading on Wednesday. Several events collided to create a panic causing some of the airlines to plunge up to 10%. Whether or not the news of the day was material, the media was full of market pundits referring back to the airline industry of old without justification. Read the full article at Seeking Alpha. Disclosure: Long AAL. Please review the disclaimer page for more details.