The Peridot Capitalist: J.P. Morgan Recommends Buying Delta

The Peridot Capitalist: J.P. Morgan Recommends Buying Delta

Chad points out that Jamie Baker, DAL analyst for JP Morgan, has been on both sides of DAL twice in the past 2 years. My belief is that analyst feel compelled to say something often so they get caught trying to call every little move. The short-term record of analyst and traders is poor. Many brokers use the calls of analyst as contrary indicators!

Why buy DAL? Business is Booming !

While the analyst are talking about the risk of bankruptcy being priced into the stock, the company is selling tickets like hot cakes. Guess what is about to happen?

Ticket prices are going to go up. Full planes times higher ticket prices yield high revenues. Full planes raise operating cost by very marginal amounts. (The gas used and employee cost to fly a full plane are not much different than the cost of flying an empty plane.) Cash flow is going up. Pension costs and other employee costs are going down.

One of my relatives bought DAL today. His account is sitting on net new highs. We are enjoying this market!

BUY THE BIG BULL BOOM BUBBLE BEFORE THE FROGS BOIL!