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Best Value Stocks To Own For 2018

For many people, homeownership is a major life goal, and they spend years saving to purchase their first home. But should owning a home come at the expense of other financial goals, like saving for retirement?

The answer is no. But a January 2017 Bankrate survey found that, in fact, more than one in three mortgages has a major impact on the borrower’s ability to save. And that may mean they spent too much on their house and their mortgage payments are too high.

If the 2008 financial crisis taught us anything, it’sthat a home should not be viewed solely as an investment that will always appreciate in value. Nor should it be regarded as a retirement asset. A home is an illiquid asset that you live in, and like any other investment, it can increase and decrease in value. And even if it does appreciate in value, you can only realize that gain if you sell it at the right time for the right price.

So, if you are in the market for a home, here are some guidelines to follow as you navigate the homebuying process to guard against your home being a barrier between you and a comfortable retirement.

Best Value Stocks To Own For 2018: Knowles Corporation(KN)

Advisors’ Opinion:

  • [By Jack Delaney]

    A deal with Facebook Inc. (Nasdaq: FB) brought the little-known Knowles Corp. (NYSE: KN) to investors’ attention today, boosting Knowles Corp. stock by 2.3% as of 12:30 p.m. today (Oct. 30, 2017).

Best Value Stocks To Own For 2018: Staffing 360 Solutions, Inc.(STAF)

Advisors’ Opinion:

  • [By Bryan Murphy]

    Look out ManpowerGroup Inc. (NYSE:MAN). And Robert Half International Inc. (NYSE:RHI)? You may want to look over your shoulder as well. A young-and-hungry staffing solutions competitor named Staffing 360 Solutions Inc (NASDAQ:STAF) is coming on strong, and just proved it again today. Some of its preliminary fiscal Q2 numbers were reported today, and they extend what’s become a long-term growth streak.

    The definition of a roll-up isn’t a hard and fast one, though even the broad brush strokes paint a pretty clear picture. Investopedia defines a roll-up (also known as a “roll up” or a “rollup”) a merger that occurs when investors (often private equity firms) buy up companies in the same market and merge them together. Roll-ups combine multiple small companies into something bigger and better to be able to enjoy economies of scale. Private equity firms use roll-ups to rationalize competition in crowded and/or fragmented markets and to combine companies with complementary capabilities into a full-service business.

    It’s also the kind of strategy Staffing 360 Solutions is executing, with great success. For the fiscal quarter ending in November, Staffing 360 Solutions has pre-reported revenue of $47 million, and a gross profit of $8.1 million. Those figures are up 14% and 8%, respectively, year-over-year.

  • [By Bryan Murphy]

    The staffing industry – and the IT staffing industry in particular – is poised for tremendous growth in the foreseeable future, and that rising tide bodes very well for Staffing 360 Solutions Inc. (NASDAQ:STAF).

  • [By Matthew Briar]

    If there was any lingering doubt about Staffing 360 Solutions Inc (NASDAQ:STAF), it was wiped away today. The IT staffing firm’s second quarter numbers verify the long-standing growth trend is still well intact. Better still, even as the top line rises, expense-cuts supported by all the synergies of its recent acquisitions have allowed the bottom line to improve by even more.

    Even before today’s official Q2 announcement we knew that last quarter’s revenue would roll in at $47.1 million and gross profits would end up at $8.1 million. Those figures were up 14% and 8.4%, respectively. What we didn’t know about STAF until today is that the net loss shrank from $3.4 million a year earlier to only $1.5 million now. EBITDA of $1.4 million was about the same as the EBITDA of $1.3 million generated in the second fiscal quarter of the prior year.

    The progress march continues for Staffing 360 Solutions.

Best Value Stocks To Own For 2018: Heron Therapeutics, Inc. (HRTX)

Advisors’ Opinion:

  • [By Chris Lange]

    Buy-dip on several “Potential Blockbusters” Aimmune Therapeutics, Inc. (NASDAQ: AIMT), Audentes Therapeutics, Inc. (NASDAQ: BOLD), AveXis, Inc. (NASDAQ: AVXS), Bluebird Bio, Inc. (NASDAQ: BLUE), Esperion Therapeutics, Inc. (NASDAQ: ESPR), and Sage Therapeutics, Inc. (NASDAQ: SAGE) are buy-dip candidates given their bullish trends and favorable technical patterns. Intercept Pharmaceuticals, Inc. (NASDAQ: ICPT), Prothena Corp. PLC (NASDAQ: PRTA), Tesaro, Inc. (NASDAQ: TSRO) and Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE) have bearish set-ups. Heron Therapeutics, Inc. (NASDAQ: HRTX) is bigger picture bullish, but may correct further on a move below $19.55. Clovis Oncology, Inc. (NASDAQ: CLVS) has bearish set-up and bulls need to push above $69 to invalidate.

Best Value Stocks To Own For 2018: Heico Corporation(HEI)

Advisors’ Opinion:

  • [By Shauna O’Brien]

    Heico Corp (HEI) announced on Thursday that it has agreed to purchase Lucix Corp, a manufacturer of military satellite, airborne, and ground systems.

    The terms of the deal were not disclosed, but HEI revealed that the acquisition could be completed within 60 days. The deal is expected to impact HEI’s earnings within the first year.

    Heico shares were up 67 cents, or 1.04%, during Thursday morning trading. The stock is up 46% YTD.

  • [By Monica Gerson]

    Heico Corp (NYSE: HEI) is estimated to post its quarterly earnings at $0.54 per share.

    Exa Corp (NASDAQ: EXA) is projected to post a quarterly loss at $0.08 per share on revenue of $16.68 million.

Best Value Stocks To Own For 2018: Markel Corporation(MKL)

Advisors’ Opinion:

  • [By Ashley Moore]

    Here is a table of the 10 most expensive stocks trading on U.S. markets today:

    Company (Ticker)Price per ShareMarket CapBerkshire Hathaway Inc. (NYSE: BRK-A)$ 257,227.52$ 419.50 billionSeaboard Corp. (NYSEMKT: SEB)$ 3,760.00$ 4.48 billionNVR Inc. (NYSE: NVR)$ 1,944.23$ 7.19 billionThe Priceline Group Inc. (Nasdaq: PCLN)$ 1,727.94$ 80.82 billionMarkel Corp. (NYSE: MKL)$ 978.51$ 13.78 billionWhite Mountains Insurance Group Ltd. (NYSE: WTM)$ 935.01$ 4.25 billionAmazon.com Inc. (Nasdaq: AMZN)$ 846.08$ 408.27 billionAlphabet Inc. (Nasdaq: GOOGL)$ 844.06$ 582.85 billionAutoZone Inc. (NYSE: AZO)$ 744.26$ 21.04 billionIntuitive Surgical Inc. (Nasdaq: ISRG)$ 735.63$ 28.41 billion

  • [By Matthew Frankel]

    Markel (NYSE:MKL) has been referred to as a mini-Berkshire many times, and for good reason. The company uses the same general business model as Warren Buffett does at Berkshire, using the cash from its insurance businesses to buy stocks and entire companies.

Top 5 Bank Stocks To Watch Right Now

Related VRX After SunEdison, Twitter Users See Valeant Filing Bankruptcy NextNot SandRidge Or Another Solar Player The Market In 5 Minutes: April, Come She Will It's Official: The Good Times Are Over (Seeking Alpha)

Valeant Pharmaceuticals Intl Inc (NYSE: VRX) shares finished a down Monday with a sharp move to the $26 mark after a Bloomberg report said the company's creditors were resistant to relaxed lending standards.

According to a source with knowledge of the matter, Bloomberg said Valeant was "facing push back from some of its lenders as it seeks to waive a default and loosen restrictions on its debt."

Valeant has until Wednesday to get lenders to approve revised loan agreements, the report added. The company needs more than half of its secured loan-backers — holding a value of about $11 billion in debt — to agree to a new pact, ideally one that's more affordable for Valeant. "Those that are balking are demanding a higher interest rate and a better fee," the report added.

Top 5 Bank Stocks To Watch Right Now: Google Inc.(GOOG)

Advisors’ Opinion:

  • [By Adam Levy]

    Google recently released a device similar to Echo, Google Home, in order to take advantage of the trend. Additionally, the Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) subsidiary said voice searches tripled over the last two years.

  • [By Danny Vena]

    Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google has introduced Google Assistant, which expands on the capabilities of Google Now and OK Google. This assistant is currently available on its Pixel phones and can be accessed on other smartphones via the Google Allo app. This virtual helper is more conversational and has produced impressive early results due to experiences gained from its predecessors. It was found to rival and in many cases surpass its nearest competitors. Assistant’s greatest strength may be the ability to answer follow-up questions, a feature many of its rivals lack. Integration with Google Home smart speaker puts it squarely in competition with Amazon’s Echo. Its strengths include entire home synchronized audio and grouping of smart-home commands. Some researchers believe that Alexa will cede its early lead in the category to Google Assistant by 2020.

  • [By Adam Levy]

    Both Amazon.com (NASDAQ:AMZN) and Google’s parent company,Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), are trading near their all-time highs. Amazon’s stock has climbed so much in the past 12 months, it’s made its founder and CEO Jeff Bezos the second wealthiest person in the world, recently surpassing Warren Buffett and Amancio Ortega. Alphabet shares are up a modest 11%, compared with Amazon’s 51% increase.

Top 5 Bank Stocks To Watch Right Now: Knowles Corporation(KN)

Advisors’ Opinion:

  • [By Jack Delaney]

    A deal with Facebook Inc. (Nasdaq: FB) brought the little-known Knowles Corp. (NYSE: KN) to investors’ attention today, boosting Knowles Corp. stock by 2.3% as of 12:30 p.m. today (Oct. 30, 2017).

Top 5 Bank Stocks To Watch Right Now: Electro Scientific Industries, Inc.(ESIO)

Advisors’ Opinion:

  • [By Jim Robertson]

    On Wednesday, our Elite Opportunity Pro (EOP) portfolio newsletter has suggestedsmall cap laser-based manufacturing solutions stockElectro Scientific Industries (NASDAQ: ESIO). According tothe Company itself: Its integrated solutions allow industrial designers and process engineers to control the power of laser light to transform materials in ways that differentiate their consumer electronics, wearable devices, semiconductor circuits and high-precision components for market advantage. The Company’s laser-based manufacturing solutions feature the micro-machining industry’s highest precision and speed, and target the lowest total cost of ownership.To put that more into layman terms: Electro Scientific Industries systems enable precise engineering and testing of micron to submicron features in semiconductors, LEDs, multi-layer ceramic capacitors (MLCCs), printed circuit boards (PCBs), flex circuits and other high-value components – all of which are vital to our economy.

Top 5 Bank Stocks To Watch Right Now: UTStarcom Holdings Corp(UTSI)

Advisors’ Opinion:

  • [By William Romov]

    Before we show you our pick, here are the top 10 penny stocks to watch this week

    Penny Stock Current Share Price Nov. 27-Dec. 1 Gain (as of Dec. 1)
    Pyxis Tankers Inc. (Nasdaq: PXS) $4.10 122.83%
    Ohr Pharmaceuticals Inc. (Nasdaq: OHRP) $1.28 68.42%
    Cerecor Inc. (Nasdaq: CERC) $1.74 47.46%
    Proteostasis Therapeutics Inc. (Nasdaq: PTI) $2.52 37.71%
    UT Starcom Holdings Corp. (Nasdaq: UTSI) $5.20 37.20%
    WMIH Corp. (Nasdaq: WMIH) $0.96 33.46%
    PhaseRx Inc. (Nasdaq: PZRX) $0.90 30.29%
    Bellerophon Therapeutics Inc. (Nasdaq: BLPH) $2.04 29.94%
    EV Energy Partners LP (Nasdaq: EVEP) $0.86 27.76%
    Catalyst Pharmaceuticals Inc. (Nasdaq: CPRX) $4.40 25.71%

    FREE PROFIT ALERTS: Get real-time recommendations on the best penny stock opportunities the moment we release them. Just sign up here, its completely free

  • [By Lisa Levin]

    Shares of UTStarcom Holdings Corp (NASDAQ: UTSI) got a boost, shooting up 10 percent to $3.61. UTStarcom Holdings reported Q3 adjusted earnings of $0.07 per share on revenue of $26 million.

  • [By Jim Robertson]

    Yesterday, small cap Chinese broadband stockUTStarcom Holdings Corp (NASDAQ: UTSI) rose 29.02% and is still rising in after hours / premarket trading 5.32%, but now the stock is starting to look overbought on the technical charts:

Top 5 Bank Stocks To Watch Right Now: SuperCom, Ltd.(SPCB)

Advisors’ Opinion:

  • [By Monica Gerson]

    Supercom Ltd (NASDAQ: SPCB) is estimated to post its quarterly earnings at $0.15 per share on revenue of $9.03 million.

    Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets

  • [By Lisa Levin]

    Supercom Ltd (NASDAQ: SPCB) shares shot up 53 percent to $4.17 after the company reported strong results for its third quarter. SuperCom expects FY17 sales of at least $35 million.

Best Value Stocks To Invest In 2018

Description of the opportunity and investment thesis

CRHM represents a compelling risk/reward opportunity in the form of a rapidly growing leader in anesthesiology services for GIs in the US and Canada. We believe the company is undervalued on an absolute and relative basis, currently trading at a dramatically low multiple of current and future estimated free cash flow. Given the companys niche position in their market, stable business model, long runway for growth, and fears surrounding short-term operational results, we feel weve been provided with a solid margin of safety at current price levels, with the chance for 100% upside or more within 12-18 months.

Best Value Stocks To Invest In 2018: Layne Christensen Company(LAYN)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows small caps Great Lakes Dredge & Dock Corporation andLayne Christensen Company (NASDAQ: LAYN) underperforming, but possibly recovering while Orion Group Holdings (NYSE: ORN) had a clear reversal early last year:

  • [By Lisa Levin]

    Shares of Layne Christensen Company (NASDAQ: LAYN) got a boost, shooting up 16 percent to $8.78 after the company posted a narrower-than-expected loss for its first quarter.

Best Value Stocks To Invest In 2018: Knowles Corporation(KN)

Advisors’ Opinion:

  • [By Jack Delaney]

    A deal with Facebook Inc. (Nasdaq: FB) brought the little-known Knowles Corp. (NYSE: KN) to investors’ attention today, boosting Knowles Corp. stock by 2.3% as of 12:30 p.m. today (Oct. 30, 2017).

Best Value Stocks To Invest In 2018: Hudson Technologies, Inc.(HDSN)

Advisors’ Opinion:

  • [By WWW.THESTREET.COM]

    Finally, Cramer said Hudson Technologies (HDSN) was a great stock to own in 2016, when shares soared 170%, but this year, he cannot recommend this high-flying refrigeration company.

  • [By Lisa Levin]

    Hudson Technologies, Inc. (NASDAQ: HDSN) shares dropped 13 percent to $6.55 amid concerning guidance. The company said it is expecting Q3 EPS of $0.03-$0.05 versus an analyst consensus estimate of $0.10. Sales are expected to be around $25 million versus the analyst estimate of nearly $41 million.

top cheap stocks to buy now

EUR/USD Poised For Further Gains?
Price decreased a little in the morning as the USDX has managed to increase a little in the morning, the index is struggling to stay above the 93.17 previous low. USDX is under massive selling pressure on the Daily chart and could drop further because we don't have any reversal sign right now.
The greenback will lose more ground versus its rivals if the USDX will slip towards the 92.49 major static support, a drop towards this level is favored because I don't believe that the US data will impress in the upcoming period.
The Euro may resume the upside movement if the Euro-zone data will come in better than expected, the German Retail Sales have increased by 1.1%, more versus the 0.1% estimate and compared to the 0.5% growth in the former reading period. We'll see how the EUR/USD will react when the Euro-zone CPI Flash Estimate will be released, the indicator should increase by 1.3% in July, while the Core CPI Flash Estimate may increase by 1.1%, like in the former reading period. The Unemployment Rate will be released as well and could decrease from 9.3% to 9.2%.

top cheap stocks to buy now: RepliCel Life Sciences Inc. (REPCF)

Advisors’ Opinion:

  • [By Sara Cornell]

    RepliCel Life Sciences Inc. (OTCBB: REPCF) (TSX: RP.V) – could be changing the way we treat baldness and hair loss in the future.

    A clinical-stage regenerative medicine company, RepliCel is developing a unique biologic product that harnesses a patient’s own cells to treat pattern baldness and thinning hair, as well as products for aging and sun-damaged skin, and chronic tendon degeneration. The company recently announced the successful completion of its first-in-human clinical study of autologous cell therapy for the treatment of Androgenetic Alopecia, commonly known as pattern baldness.

top cheap stocks to buy now: Rigel Pharmaceuticals Inc.(RIGL)

Advisors’ Opinion:

  • [By Lisa Levin]

    Rigel Pharmaceuticals, Inc. (NASDAQ: RIGL) shares dropped 22 percent to $2.52 after the company reported results from the second FIT Phase 3 study for fostamatinib. The company disclosed that the study did not meet primary endpoint.

top cheap stocks to buy now: Knowles Corporation(KN)

Advisors’ Opinion:

  • [By Jack Delaney]

    A deal with Facebook Inc. (Nasdaq: FB) brought the little-known Knowles Corp. (NYSE: KN) to investors’ attention today, boosting Knowles Corp. stock by 2.3% as of 12:30 p.m. today (Oct. 30, 2017).

top cheap stocks to buy now: Telefonica SA(TEF)

Advisors’ Opinion:

  • [By Lisa Levin]

    Telecommunications services shares gained around 0.98 percent in trading on Thursday. Meanwhile, top gainers in the sector included Telefonica S.A. (ADR) (NYSE: TEF), and Allot Communications Ltd (NASDAQ: ALLT).

  • [By Javier Hasse]

    Multiple-award-winning Trimaker is the leader in terms of sales in 3D printing in the region, serving clients like Staples, Inc. (NASDAQ: SPLS), Toyota Motor Corp (ADR) (NYSE: TM), Kraft Heinz Co (NASDAQ: KHC) and Telefonica S.A. (ADR) (NYSE: TEF). The company not only manufactures its own 3D printers, but also offers materials and related services.

top cheap stocks to buy now: CVD Equipment Corporation(CVV)

Advisors’ Opinion:

  • [By Jim Robertson]

    At the beginning of the week, our Under the Radar Moversnewsletter suggestedsmall cap industrial machinery stock CVD Equipment Corporation (NASDAQ: CVV) as a long/bullish trade:

  • [By Jim Robertson]

    On Wednesday, our Under the Radar Moversnewsletter suggested small cap materials and coatings stock CVD Equipment Corporation (NASDAQ: CVV) as a short/bearish trade:

Top Safest Stocks To Watch For 2018

Shutterstock

Scammers clearly aren’t taking a break this summer. Days after the Internal Revenue Service (IRS) warned taxpayers about a “new twist” to an existing phone scam, the agency has issued yet another scam warning. The IRS, state tax agencies, and the tax industry, as part of the Security Summit partnership, are warning tax professionals about new phishing emails claiming to be from a tax software education provider seeking sensitive preparer data.

According to the IRS, the email’s origin is not yet known but is thought to be issued by cybercriminals who could be operating from the U.S. or abroad. What makes the email unusual, according to the IRS, is “the amount of sensitive preparer data that it seeks.”

And, just to make the scam more believable, he fake email uses the name of a real U.S.-based preparer education firm.

Top Safest Stocks To Watch For 2018: MEDIFAST INC(MED)

Advisors’ Opinion:

  • [By Peter Graham]

    Although obesity is widespread, small cap dieting stocks havetended to causeinvestor portfolios to loose weight. A long term performance chart shows small cap weight loss or dieting stocks Weight Watchers International and Reliv International, Inc (NASDAQ: RELV) stillbelow or at breakeven for longer term investors whileMedifast Inc (NYSE: MED)has performed better and NutriSystem Inc (NASDAQ: NTRI) hasfinally begun to take offearly last year:

  • [By Lee Jackson]

    These companies also reported insider buying last week: Carrizo Oil and Gas Inc. (NASDAQ: CRZO), Medifast Inc. (NYSE: MED), Medley Capital Corp. (NYSE: MCC), Occidental Petroleum Corp. (NYSE: OXY) and Sothebys (NYSE: BID).

  • [By Peter Graham]

    A long term performance chart shows small cap weight loss or dieting stocks Weight Watchers International and Reliv International, Inc (NASDAQ: RELV) still underperforming whileNutriSystem Inc (NASDAQ: NTRI) and Medifast Inc (NYSE: MED) began taking off early last year:

Top Safest Stocks To Watch For 2018: Knowles Corporation(KN)

Advisors’ Opinion:

  • [By Jack Delaney]

    A deal with Facebook Inc. (Nasdaq: FB) brought the little-known Knowles Corp. (NYSE: KN) to investors’ attention today, boosting Knowles Corp. stock by 2.3% as of 12:30 p.m. today (Oct. 30, 2017).

Top Safest Stocks To Watch For 2018: Diana Containerships Inc.(DCIX)

Advisors’ Opinion:

  • [By Lisa Levin]

    Diana Containerships Inc (NASDAQ: DCIX) shares shot up 45 percent to $9.60. Diana Containerships reported a Q3 loss of $128.67 per share on sales of $6.73 million.

  • [By Lisa Levin]

    Diana Containerships Inc (NASDAQ: DCIX) was down, falling around 26 percent to $0.276. Diana Containerships disclosed a 1-for-7 reverse stock split.

  • [By Lisa Levin]

    Shares of Diana Containerships Inc (NASDAQ: DCIX) got a boost, shooting up 169 percent to $16.49. Diana Containerships shares climbed 276 percent, since the election.

  • [By Lisa Levin] Related Chardan Analyst Suggests An AveXis-Ionis Pair Trade Why The Biogen-Ionis News Is A Boon For AveXis AveXis' (AVXS) CEO Sean Nolan on Q4 2016 Results – Earnings Call Transcript (Seeking Alpha)
    Related CLBS Earnings Scheduled For March 17, 2017 15 Biggest Mid-Day Gainers For Thursday Caladrius Biosciences beats by $0.07, beats on revenue (Seeking Alpha) Gainers
    Caladrius Biosciences Inc (NASDAQ: CLBS) shares rose 20.2 percent to $6.13 in pre-market trading after the company reported a narrower-than-expected quarterly loss.
    Arbutus Biopharma Corp (NASDAQ: ABUS) rose 12.3 percent to $3.20 in pre-market trading after the company disclosed that it has licensed LNP delivery technology to Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) for use in single messenger RNA product candidate.
    AveXis Inc (NASDAQ: AVXS) rose 12.2 percent to $81.66 in pre-market trading after the company reported topline data from Phase 1 trial of AVXS-101.
    TOP SHIPS Inc (NASDAQ: TOPS) shares rose 10.5 percent to $2.43 in pre-market trading after surging 109.52 percent on Thursday.
    ChipMOS TECHNOLOGIES INC. (NASDAQ: IMOS) rose 9.8 percent to $17.45 in pre-market trading after declining 0.44 percent on Thursday.
    Sino-Global Shipping America, Ltd. (NASDAQ: SINO) rose 8.3 percent to $3.38 in pre-market trading after climbing 23.81 percent on Thursday.
    Diana Containerships Inc (NASDAQ: DCIX) rose 7.6 percent to $2.99 in pre-market trading after surging 12.55 percent on Thursday.
    Steel Dynamics, Inc. (NASDAQ: STLD) rose 5.2 percent to $37.25 in pre-market trading. Steel Dynamics expects Q1 earnings of $0.77 to $0.81 per diluted share. The company also declared a quarterly cash dividend of $0.1550 per common share.
    Adobe Systems Incorporated (NASDAQ: ADBE)
  • [By Lisa Levin]

    Shares of Diana Containerships Inc (NASDAQ: DCIX) were down 8 percent to $0.433. Diana Containerships reported a Q1 loss of $0.80 per share on sales of $3.77 million.

  • [By Lisa Levin]

    Diana Containerships Inc (NASDAQ: DCIX) shares shot up 109 percent to $13.78. Diana Containerships reported a Q3 loss of $128.67 per share on sales of $6.73 million.

Top Safest Stocks To Watch For 2018: American Airlines Group, Inc.(AAL)

Advisors’ Opinion:

  • [By Adam Levine-Weinberg]

    A few years ago, Delta Air Lines (NYSE:DAL) introduced a new class of cheaper “basic economy” fares to help it compete with ultra-low cost carriers on certain routes. Last year, American Airlines (NASDAQ:AAL) and United Continental (NYSE:UAL) confirmed that they would introduce their own basic economy fares to stay competitive.

  • [By Ben Levisohn]

    Remember when Warren Buffett’s Berkshire Hathaway (BRK.B) bought shares of American Airlines (AAL), United Continental (UAL), Delta Air Lines (DAL), and Southwest Airlines (LUV). Short sellers sure do–and they’ve been running for cover ever since. S3 Partners’ Ihor Dusaniwsky explains:

  • [By Douglas A. McIntyre]

    In the past year, shares of American Airlines Group Inc. (NYSE: AAL) are up 69%. Shares of United Continental are up 81%. And shares of Southwest Airlines Co. (NYSE: LUV) are up 51%. The S&P 500 is higher by 17% over the same period.

  • [By Ben Levisohn]

    Shares of American Airlines (AAL) are soaring today after Stifel named the stock to Stifel Select List. But it’s the reason for Stifel’s optimism, more than the addition itself, that is eye catching.

    Agence France-Presse/Getty Images

    See, American Airlines has been under pressure this year–its dropped 11% so far in 2017–on fears that increased capacity would reduce its profitability. The same fears have also dented United Continental Holdings (UAL) and Delta Air Lines (DAL).

    Stifel’s Joseph DeNardi and Matthew Rachal, however, argue that the increased capacity at American Airlines doesn’t matter thanks to a revenue stream that the market has ignored: The revenue from its frequent flier program. They explain why:

    The consensus price target on American, excluding us at $95, of $54 reflects a fundamental misunderstanding of the source of American’s earnings, in our view. Within American is an operating segment that accounts for ~50% of EBIT, is growing revenue at ~10% per year with a 65%-70% operating margin with very low capital requirements and very high barriers to entry. We know it exists. American Airlines knows it exists. But the vast majority of the investment community does not or, at this point, is skeptical that it does. We attribute this to a lack of information supplied by the companies for investors to properly assess the size and profitability of airline loyalty programs. We are confident that this will change in the near-to-mid term as disclosures begin to improve over the next several months followed by the reporting of the business as its own operating segment in 12-18 months.

    How big a deal could this be? DeNardi and Rachal argue that the AAdvantage program could generate about $2.7 billion in 2018, greater than the $2.5 billion in pre-tax earnings implied by the consensus estimate of $3.50 a share in 2018. They call it “an earnings stream immune from incremental capac