I seem to think so since many airlines are trading at pennies on the dollar. This article points out some information about the oil bubble and what stocks will recover off of it bursting.
If oil prices decline, as I expect them to, then input costs for all carriers will decline markedly, if even for just several months. There is certainly enough room to juice this speculation for at least a quick 35% to 50% profit, possibly more. Plus, add some dividends into the picture, profitable earnings, and a big bear market rally and you should hit a home-run in airlines before December.
I agree with this assessment since people still need to fly for business and other reasons. They certainly won't be driving with $4.00 gas so flying may actually be cheaper to some people. I just love stocks that have been beaten up and are badmouthed by just about everyone. You just have to make sure that they don't go bankrupt while you wait for the bubble to burst.
One airline that looks good is GOL Linhas Areas Inteligentes S.A. (GOL) which is a Brazilian Regional Airline. They currently have a 78 aircraft fleet and fly to 59 destinations mostly in Brazil and its neighbors. With Brazil's recent potentially massive oil wealth from their Tupi field we may be seeing less crushing poverty and more middle class and affluent people who would have the means and the ability to fly.
So we could have incredible growth out of regional carriers like we saw from China a few years ago. Some Chinese airlines were 8 to 10 baggers before high jet fuel beat the crap out of them. So stocks like GOL could now be purchased at discounted rates so you get margin of safety in spades. This stock is trading at its 52 week low. The best part is that GOL pays a pretty decent 4% dividend as well. So you will get paid to wait out high oil prices.
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