All things STOCKS

#4,076
#4,076
Bunch of nothing said. Just that airline stock prices are more attractive now versus a couple of weeks ago. And BA's customers aren't going to help them bounce back anytime soon.

I'd like to own BA, but more like at $125 rather than $175. 52 week low is around $80.
 
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#4,079
#4,079
Hey @Freak

Publicly traded stocks are corporations. Federal corporate tax policy is an important component of All things STOCKS discussions. Raising corporate taxes from 21% to 28% is highly relevant to stock valuations.

I had a question about the favorable depreciation treatment and carried interest points, but the posts are deleted.
 
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#4,080
#4,080
Thunder Good-Oil said:
They didn't. But SAVE was one airline mentioned along with Delta. Nothing of much interest mentioned. Did say that SAVE is better positioned as mainly domestic oriented.
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Intresting. I think some in here have said Delta has the best balance sheet of the big 3.
Also random side note their stock is a bit pricey and I have seen the as extreme runs, but imo Allegiant is positioned well to make it out ahead. They are very similar to SAVE
 
#4,081
#4,081
Thunder Good-Oil said:
Hey @Freak

Publicly traded stocks are corporations. Federal corporate tax policy is an important component of All things STOCKS discussions. Raising corporate taxes from 21% to 28% is highly relevant to stock valuations.

I had a question about the favorable depreciation treatment and carried interest points, but the posts are deleted.
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Publicly traded stocks are corporations? Who knew! 😁

Fixed. Looks like those posts had been swept up with others that weren’t really related to stock discussion.
 
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#4,083
#4,083
BigOrangeMojo said:
I believe in tax fairness. I think you can raise revenue by removing some of the preferences that certain industries have (and others dont) and items such as carried interest and bonus depreciation without a 33% increase in corporate tax rate. This would create revenue and still keep U.S. companies on a level playing field.
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Doesn't bonus depreciation phase out at pretty low levels on income statements? I'm far from current on the corporate tax codes. If it is more of a stimulus to smaller, growing businesses then I'm for it.
 
#4,084
#4,084
mr.checkerboards said:
Intresting. I think some in here have said Delta has the best balance sheet of the big 3.
Also random side note their stock is a bit pricey and I have seen the as extreme runs, but imo Allegiant is positioned well to make it out ahead. They are very similar to SAVE
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I’ve flown Allegiant quite a bit and seems like a solid operation based simply on my experiences as a consumer. I’ve never actually looked into their stock though. I may have to now, just for fun.
 
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#4,085
#4,085
Freak said:
Publicly traded stocks are corporations? Who knew! 😁

Fixed. Looks like those posts had been swept up with others that weren’t really related to stock discussion.
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Yes, it's hard to keep politics completely out of it. If we can stay somewhat non-partisan then we're doing pretty well. Being against higher taxes should be what all political divisions should favor. But...
 
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#4,086
#4,086
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#4,087
#4,087
Thunder Good-Oil said:
Yes, it's hard to keep politics completely out of it. If we can stay somewhat non-partisan then we're doing pretty well. Being against higher taxes should be what all political divisions should favor. But...
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I hear you. I think discussion on policies as it relates to politics should be fine.
 
#4,088
#4,088
mr.checkerboards said:
Intresting. I think some in here have said Delta has the best balance sheet of the big 3.
Also random side note their stock is a bit pricey and I have seen the as extreme runs, but imo Allegiant is positioned well to make it out ahead. They are very similar to SAVE
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Just to be clear, they weren't comparing SAVE to Delta. Just said that domestic flights help Spirit's business model.

I haven't touched airlines since flushing a month or two salary on Delta before their bankruptcy about 15 years ago. I'm thinking hard about SAVE. Maybe JETS as well, but ETFs usually include all of the garbage stocks as well. LUV maybe? When Buffet dipped BRK into them briefly it got my attention. I'm still not interested in holding for the long term though (5+ years).
 
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#4,089
#4,089
Freak said:
Thought this was interesting.

Tesla Shorts to Amass First-Ever $20 Billion Bet Against a Stock
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I saw Novogratz on CNBC last night talking about his new short position in TSLA. He is smarter than me and more successful than I will ever be, but I couldn't short this at any level. I don't think it's worth the current valuation, but this stock could double again before it rolls over. Or it could sink tomorrow. I'll continue to watch from the sidelines on this one.
 
#4,090
#4,090
TheColdVolTruth said:
I saw Novogratz on CNBC last night talking about his new short position in TSLA. He is smarter than me and more successful than I will ever be, but I couldn't short this at any level. I don't think it's worth the current valuation, but this stock could double again before it rolls over. Or it could sink tomorrow. I'll continue to watch from the sidelines on this one.
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I agree. It seems like it has to come back down to earth at some point, but I wouldn’t be willing to bet on when. TSLA is a stock I’d love to own, but not at these valuations.
 
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#4,091
#4,091
lmoore944 said:
I can tell you that the rental car business right now is about as busy as it can get. If schools go back in the fall the retail side will slow down slightly, but the insurance business is going to be insane. Without hertz 500,000 cars, every rental business is going to be swamped for the rest of the year. This is an industry I can give you 100% facts on and not just opinion.
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I appreciate the insight, but I couldn't pull the trigger before the 35% run. I certainly wouldn't chase it here. I liked the moving truck portion of the business due to pent up demand and the rebounding mortgage application data. I may have discounted the vacation rental side of Avis. All I think of rental cars is business travel simply because those are my only experiences with the car rental industry, and the business travel revenue has to be under pressure. I may wish I had bought this in a few years, but I'll probably just keep watching this one.
 
#4,092
#4,092
Freak said:
I bought some CSCO back around the time I made this post as a long term dividend play. Seems like a stock that’s getting some love these days.

Cisco's stock rises after Morgan Stanley turns bullish, citing durable earnings growth and valuation
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Before FAANG there were the 4 Horsemen of the Internet. MSFT is doing well as a tech conglomerate. I suppose that INTC and CSCO had been hurt by competition and the CCP's IP theft. I can't stand Michael Dell. I wish that VMware could be separated from his crooked ass.
 
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#4,093
#4,093
Thunder Good-Oil said:
Just to be clear, they weren't comparing SAVE to Delta. Just said that domestic flights help Spirit's business model.

I haven't touched airlines since flushing a month or two salary on Delta before their bankruptcy about 15 years ago. I'm thinking hard about SAVE. Maybe JETS as well, but ETFs usually include all of the garbage stocks as well. LUV maybe? When Buffet dipped BRK into them briefly it got my attention. I'm still not interested in holding for the long term though (5+ years).
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You seem to value fundamentals over technicals, but I like the chart setup on SAVE. It looks like it held the 50 day today. If it can break 18.50 with volume, I think it could make a lot of folks in this thread flush with seafood. I hate the fundamentals of all the airlines right now, but I hate the value airlines much less than the legacies.
 
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#4,094
#4,094
Thunder Good-Oil said:
Doesn't bonus depreciation phase out at pretty low levels on income statements? I'm far from current on the corporate tax codes. If it is more of a stimulus to smaller, growing businesses then I'm for it.
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Bonus depreciation can be utilized for almost any non real property tangible asset for any sized company. For example, FedEx can deduct fully the cost of an airplane they buy in Year 1. For 10K purposes, it doesnt increase P/L since it's a timing between GAAP and IRS treatment of depreciation but it increases cash flow. That's how FedEx can go from billions of GAAP of income to a much smaller taxable income number.

Smaller companies still can utilize Section 179.
 
#4,095
#4,095
BigOrangeMojo said:
Bonus depreciation can be utilized for almost any non real property tangible asset for any sized company. For example, FedEx can deduct fully the cost of an airplane they buy in Year 1. For 10K purposes, it doesnt increase P/L since it's a timing between GAAP and IRS treatment of depreciation but it increases cash flow. That's how FedEx can go from billions of GAAP of income to a much smaller taxable income number.

Smaller companies still can utilize Section 179.
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No caps? How long has that been in the tax code? What would even go onto the balance sheet? Is it just certain, specific fixed assets?

Edit: I guess whether the assets go onto the BS or not isn't relevant. It's just an additional deduction or credit on the return. It should alter the arguments when companies want to deduct and the IRS wants FAs be on the BS.
 
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#4,096
#4,096
TheColdVolTruth said:
You seem to value fundamentals over technicals, but I like the chart setup on SAVE. It looks like it held the 50 day today. If it can break 18.50 with volume, I think it could make a lot of folks in this thread flush with seafood. I hate the fundamentals of all the airlines right now, but I hate the value airlines much less than the legacies.
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I haven't been trading much lately. I used to always keep a couple of limit orders open. Equities seem a bit pricey right now so I think I need to get back into some ST trades. I'd rather trade stocks that have a good business.

I assume that most older names have gotten pension liabilities factored out of their valuations by now. A few years back those would have given the newer operators a huge advantage. I suppose that unions might still be a drag on some more than others?
 
#4,097
#4,097
Freak said:
I’ve flown Allegiant quite a bit and seems like a solid operation based simply on my experiences as a consumer. I’ve never actually looked into their stock though. I may have to now, just for fun.
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Same here. Thats honestly the only airline my family flies. I like em because they can be budget but if you want the upgrades then they're there to be had. Plus they fly direct to Sanford airport which is a lot easier to navigate then Orlando imo.
As far as their stock they're running around 110 a share, but I've seen them as high as 123 during this. Their 52 week high is 182. They just laid off about 260 employees but some of those positions were empty and they just closed them. Ive read at peak their cash burn was around 2.2 million l, and they expect it to be about 1.75 million for the second quarter. I also read a quote from their CEO who said they were talking to a lot of companies about buying their airplanes they wanted to get rid of because they can get good deals on them right now. I really like them to come out of this strong im just not playing with enough cash right now to make moves with their stock.
 
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#4,098
#4,098
Thunder Good-Oil said:
No caps? How long has that been in the tax code? What would even go onto the balance sheet? Is it just certain, specific fixed assets?

Edit: I guess whether the assets go onto the BS or not isn't relevant. It's just an additional deduction or credit on the return. It should alter the arguments when companies want to deduct and the IRS wants FAs be on the BS.
Click to expand...

In the FedEx example, they buy a $150MM plane. For GAAP purposes, let's say they depreciate over 15 years. They depreciate $10MM for 15 yrs for GAAP purposes in this simplified example. After 1 year, they will have 150MM asset and $10MM Accumulated Depreciation on 10K.

For IRS purposes, they depreciate the entire $150MM in Y1 and $0 Y2-15. Assuming the tax rates stay the same, it's the same impact (just timing). Where the Treasury gets into issues is when companies go belly up and those assets get sold to other companies who then fully depreciate those assets.

FedEx is going to buy these planes no matter whether or not bonus depreciation exists.
 
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#4,099
#4,099
Thunder Good-Oil said:
Yes, it's hard to keep politics completely out of it. If we can stay somewhat non-partisan then we're doing pretty well. Being against higher taxes should be what all political divisions should favor. But...
Click to expand...

Have to disagree. We should all favor no or low deficits which means taxing to pay as you go. I read today that the deficit for June was 823 billion. Last June it was 8 billion.
The deficits are necessary right now, although much of the money is wasted. Running deficits when the economy is sound is senseless.

Ha, I filed myincome tax return in March, and am due a $8000 refund. IRS is completely unresponsive. Not a isolated case.
 
#4,100
#4,100
BigOrangeMojo said:
In the FedEx example, they buy a $150MM plane. For GAAP purposes, let's say they depreciate over 15 years. They depreciate $10MM for 15 yrs for GAAP purposes in this simplified example. After 1 year, they will have 150MM asset and $10MM Accumulated Depreciation on 10K.

For IRS purposes, they depreciate the entire $150MM in Y1 and $0 Y2-15. Assuming the tax rates stay the same, it's the same impact (just timing). Where the Treasury gets into issues is when companies go belly up and those assets get sold to other companies who then fully depreciate those assets.

FedEx is going to buy these planes no matter whether or not bonus depreciation exists.
Click to expand...

It's kind of deceptive that they call it BONUS depreciation instead of accelerated depreciation or simply the expensing of fixed assets. It would be a great economic stimulus if it was used to incentivise CapEx purchasing from domestic based manufacturing. In reality it probably stimulated production in places like China absent restrictions on the source. It looks like the more recent legislation doesn't even restrict it to newly manufactured fixed assets purchases.

I don't have a big issue with carried interest as long as it's based on long term holding periods of those investments.

I wonder if we'll see value added taxes at some point. Income taxes on corporations and individuals are just ridiculous. It's theft. Unfortunately value added would just be IN ADDITION to existing government taxation instead of a REPLACEMENT.
 
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