Three posts since Nov. 30, 1998. I guess I won't try to have a conversation with anyone here.
But, my thoughts on DAL: I've been watching the airlines over the summer, going lower as oil prices kept rising dramatically this year.
Oil prices have risen because of course, OPEC members and "affiliates" (Mexico, Norway) have managed to collectively keep most of their production cutback agreements. However, it was only very painfully low oil prices that forced them to keep their agreements. The Saudi kingdom actually had to slash their govt budget, that's how bad low oil prices affected them.
Now, with oil recently hitting $25/bbl, from a low of low teens only about 10 months ago, the desire to produce more oil at these prices is going to become irresistable, and the coalition more than likely will gradually cheat more and more. Compliance with production levels is already dropping, to currently 81% compliance among the signers to the cutback agreement agreed upon in the spring of this year.
Which brings me back to DAL: The stock had reached last year's support level at $46-47, and was holding, so I bought some shares on Sept. 29th. As oil continues down in price (X my fingers), that will of course benefit DAL. Also, as the Asian economies improve, that will benefit DAL's flights to those countries (mainly thinking of Japan).
I for one think DAL's stock price is a buy right here, and so I have bought some.
>Hello Larry, What do you have to say about Delta's stock price?< |
