Wednesday, July 9, 2014

AAL - American stays alive!

Shortly after my article about American Airlines, the stock took a tumble.  The stock dropped to $37.95 by Tuesday morning.

This was caused by a reaction of statements made by their European competitors about how competitive international travel is.  

Luckily for us, the CEO released a statement stating passenger growth and a more stable flight paths.  Also released was a report about how American made $580 million on hedging fuel.  

These new stories have return AAL back to normality with the stock hovering $42-$43 Wednesday afternoon.

I change my recommendation to sell at $50.  

WMT - Walmart, Going, going, gone.

Walmart is in trouble in this dynamic global market.  It is struggling on its uphill battle of online shopping and believe it or not, the revival of US manufacturing.  

Walmart's aggressive pricing strategy is based on selling tons of cheap products. These cheap products are getting more expensive to sell in the stores, and the average consumer has the easy knowledge of scoping out the market online while shopping.  Things are not getting easier for Walmart.  Having such large stores with footprints to fill could be a huge self-inflicted wound that can't be fixed.  

I recommend you stay away from Walmart in the long run.  Profitability will be a huge issue in the next couple years.  

Tuesday, July 8, 2014

HD - Home Depot, Inc.

Home Depot is ready for take off!   It has been relatively flat for the past year while producing $0.47/share dividends.  

This morning, it is priced at $81.42, with the 52-week high and low being $83.20 and $72.21.  

There's plenty of room for growth as the economy picks up and people start to enjoy their free time the second half of the year.  

Goal: Sell at $90

Monday, July 7, 2014

AAL - American Airlines Group Inc.

Including today, AAL is on a two-day slump since it was reaching all-time highs of $44.  The sell off might be more of a market adjustment.  

AAL is now half a year old and the effects  of the merger should now be fully in play. I would expect a higher than expected quarterly report due to the market effeciencies it is now taking advantage of.  

Sell point: $50 in 2 months

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I am writing this blog as a hobby and to share my projects in electronics, programming, and engineering.