Valuentum Exclusive Analysis for the Discerning Investor

United’s Passenger Debacle An Immaterial Investment Consideration
Image Source: Tomás Del Coro. The major airlines in the US have done a fantastic job capitalizing on the ongoing upswing in air travel demand, but their economically-sensitive business models remain the most operationally-leveraged out of any industry group in our coverage. This should be investors' biggest concern: A downturn in the global economy and competitive pricing pressures are far greater worries for investors than United’s recent passenger debacle. However, as with many news-oriented items (as opposed to materially-relevant, investment-related items), United's misstep is making headlines in a big way. Though the footage in this article is appalling, investors in airline stocks have much more important things to worry about, in our view.

Nov 19, 2016

Warren Buffett Is Back Into Airlines, Should You?
Warren Buffett has changed his mind about airline stocks... In this 10-minute podcast, the Valuentum analyst team talks all about the hazards of the airline business model from substantial operating leverage to the risks of volatile jet fuel costs to bankruptcies and beyond. The team also highlights the long-term passenger growth prospects of the sector, and recent consolidation that has brewed a more optimistic tone from industry observers.

Aug 3, 2016

Boeing Declares Victory But Farnborough Disappoints
Image Source: Boeing. The commercial aerospace market has been one of our favorites for years. We continue to expect global plane deliveries to advance through the end of this decade, but anecdotal datapoints suggest that a more watchful eye is in order.

Mar 12, 2016

Big Labor Topples Republic Airways; More Trouble for Other Airlines?
Image Source: Boeing. Big Labor is growing stronger as the commercial airline cycle matures, and a looming pilot shortage may once again squeeze economic profits across the airline industry in coming years. Republic Airways’ bankruptcy filing is the latest reminder why we steer clear of airline stocks in the newsletter portfolios.

Jun 10, 2015

No Fly Zone: Airlines’ Economic Profitability Still Unproven
Despite projections of the industry generating a positive economic profit for the first time in history, we don’t like the long-term investment prospects of airlines.

Jan 28, 2015

Commercial Aerospace Flying High
Valuentum's President Brian Nelson talks about the resiliency of the commercial aircraft making business and the massive backlogs that offer a nice tailwind to the supply chain.

Nov 29, 2014

$45 Oil Prices!?!? There Is Never a Sense of Urgency When One Is Prepared
Friday brought mass selling across the energy sector. In our view, crude oil prices could hit $45 per barrel in the next few years before recovering.

Oct 1, 2014

Three Huge Red Flags for the Airlines, Hotels
We picked up three important red flags recently that may weigh on shares of the airline group (and by extension the hotel space).

Jun 22, 2014

Valuentum Economic Castle™ Rating Update
Members should expect the initial Economic Castle™ ratings.

Dec 16, 2013

The Dichotomy of Airlines and Aerospace
AIG sells aircraft leasing firm ILFC, Alcoa inks deal to supply Airbus with advanced titanium components, while the new American Airlines Group emerges from bankruptcy.

Valuentum Exclusive Analysis for the Discerning Investor Symbol Keyword

Member Login

Newsletters/Portfolios

Dividend Cushion

Stock Screens

Products & Tools

Value Trap

The Buying Index, VBI

Dividend Changes

Valuentum Exclusive Analysis for the Discerning Investor