9 Jun 2009

Statement released by Barclay’s “Airlines Analyst” Gary Chase regarding investing in airline stocks. Pardon me, but I seem to have a need to keep interrupting him.

“Over the last several months, the airline industry has been subject to more than its fair share of challenges.”

No. Its fair share. What’s unfair is that the industry cares about revenues, not the humans who buy the tickets and create the revenues. The heck with the people who pay the bills, eh?

Ask the auto industry if that’s a good “business model.”

Note to big airlines. Give us something. Anything. An Experience worth smiling about.

“The only up side to such a series of challenges is that expectations are low,”

PAINFULLY SO.

“and in our view, the risk-reward in the equities skews heavily to the upside.”

So once you completely tank, then you’re finally attractive to somebody. To Gary Chase, at least.

Or you could just do it right?

Then Gary and I would be able to agree. Skew the Experience heavily to the upside and everybody wins, not just the buy-painfully-low sell-not-quite-so-pitifully-low crowd.

 

Grow and be well,

Kelly Erickson