Pair Trade: DAL/LHA GR

Delta Air Lines Inc

Industrial/Transportation


Presented:04/09/2015
Price:$43.14
Cap:$35.60B
Current Price:$52.73
Cap:$34.03B

Presented

Date04/09/2015
Price$43.14
Market Cap$35.60B
Ent Value$42.60B
P/E Ratio55.3x
Book Value$10.74
Div Yield0.83%
Shares O/S824.27M
Ave Daily Vol830,000
Short Int1.95%

Current

Price$52.73
Market Cap$34.03B
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. The company operates in two segments, Airline and Refinery. Its route network comprises various gateway airports in Amsterdam, Detroit, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including mobile and telephone reservations, delta.com, traditional brick and mortar, and online travel agencies. It also provides maintenance and repair services for third parties, as well as offers staffing services, professional security and training services, and aviation solutions; vacation packages; and aircraft charters, and aircraft management and programs. The company operates approximately 900 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.

Pair Trade: Long Delta Air Lines Inc (DAL) & Short Deutsche Lufthansa AG (LHA GR)

Publicly traded companies mentioned herein: Delta Air Lines Inc (DAL), Deutsche Lufthansa AG (LHA GR), Ryanair Holdings plc (RYAAY), Southwest Airlines Co (LUV)

Highlights

The presenter is long shares of US-based Delta Air (DAL), and short Deutsche Lufthansa (LHA). He sees a favorable risk/ reward for the pair as the short helps protect against oil price volatility, and LHA is in a far weaker position in Europe than DAL is in the US. In addition, the presenter likes being long DAL, as he views the stock as extremely undervalued. DAL’s favorable regional exposure and substantial earnings power should help drive shares from the low-$40s today up to the $60 - $70 range.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.