Wednesday, July 2, 2014
S&P rating, AAL, my article
* Do we need any rating agency to give us rating after-the-fact? They should warn us earlier. I can predict 100% correctly that we have a raining storm today when I open the window and see one.
* AAL is my biggest win not including those stocks I sold this year such as BSX and CAMP... I bought LCC two times and they merged with AAL. Fundamentally it does not score high and airline is not a good business when you compare the fare flying from one city to another 5 years ago. They need to charge you every thing like Frontier Airline (to enrich me, the stock holder :)). The next frontier charge is the rest room, a guarantee profit esp. for long distance traveling. Now I understand why they call themselves "Frontier".
* If you have not read my article 6 Signs of a Correction, please do so. It could be served as a test on future detection. I included several signs that are not important today, why I switched my IT career to investing and my challenge to our past heroes Buffett and Peter Lynch that would surprise you.