Strictly: Drilling and oil-field services Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: marc chatman who wrote (15862)	3/22/1998 12:20:00 PM
From: Sam Citron	Read Replies (2) of 95453

Don't be so quick to short the airlines. Though fuel costs account for between 10 and 15% of total revenues, the airlines are doing a much better job of making money. Their computers are able to tell them exactly how much discounting is necessary to fill the plane. And they are not expanding capacity as quickly as previously. Just as lower fuel prices don't spell doom for the drillers or oil-service companies, neither does $15 oil spell doom for the airlines. Just take a look at how much free cash flow AMR is generating. Besides, long airline stocks are a nice hedge for an energy portfolio. If airlines swoon on Monday, I will be a buyer. SC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next