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3 Airline Penny Stocks To Watch After JetBlue, Spirit Hostile Takeover Bid

Best airline penny stocks to watch after JetBlue, Spirit hostile takeover news.
The post 3 Airline Penny Stocks To Watch After JetBlue, Spirit Hostile…

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Low fare airlines are back in focus, including several penny stocks today. The excitement comes after JetBlue Airways (NASDAQ: JBLU) turned up the heat on its takeover bid of Spirit Airlines (NYSE: SAVE). You may recall the move by JetBlue earlier this year as the company looks to outshine Spirit’s other suitor, Frontier Group Holdings (NASDAQ: ULCC). Initially, the bid was shot down, but JetBlue has upped the ante this week.

JetBlue Hostile Takeover Bid For Spirit Airlines

Let’s get you up to speed if you’re looking for some info on the latest JetBlue hostile takeover bid for Spirit Airlines. This week JetBlue announced plans to launch a takeover attempt after Spirit had already rejected a $3.6 billion offer. Instead, Spirit decided that its deal with Frontier was much better (check out the deal details here).

JetBlue stated that it aims to appeal to Spirit’s shareholders directly and launch a tender offer for their shares. The hope is that this will pressure management into reconsidering the original proposal and re-engaging in discussions. JetBlue is bidding $30 in cash with this tender offer. The airline even launched a website to present the “benefits” to SAVE stock holders – JetBlueOffersMore.com.

What’s more, JetBlue specified that “Based on the clear superiority of our offer, we expected the Spirit Board to engage constructively. Given its unwillingness to share necessary information or negotiate in good faith, we adjusted our price accordingly but will work towards a consensual transaction at $33 per share, subject to receiving the information to support it.”

There’s a chart breakdown below provided on JetBlue’s “OffersMore” website:

Airline Penny Stocks To Watch

  1. Mesa Air Group (NASDAQ: MESA)
  2. LATAM Airlines Group (OTC: LTMAQ)
  3. Gol Linhas Aereas Inteligentes (NYSE: GOL)

1. Mesa Air Group (NASDAQ: MESA)

household penny stocks to watch Mesa Airlines MESA stock

Mesa Air Group is one of the more well-known brands if you travel frequently. The Arizona-based company provides regional air service in 41 states and the District of Columbia. It also services the Bahamas and Mexico. M&A speculation has helped keep attention on the company. However, this year’s stock market crash hasn’t helped the MESA stock price much.

One of the factors contributing to mixed sentiment is the latest pilot attrition the industry is going through. Pilots are in high demand with limited supply and, thus, may opt for more prominent brands.

“The pilot shortage for the industry is real, and most airlines are simply not going to be able to realize their capacity plans because there simply aren’t enough pilots, at least not for the next five-plus years,” United Airlines CEO Scott Kirby said on a quarterly earnings call earlier this year.

In Mesa’s latest round of earnings, CEO Jonathan Ornstein also commented on this issue. “While demand for our product remains strong, our financial results this quarter reflect the ongoing challenge of heightened pilot attrition. In January, our operational and financial performance was significantly impacted by Covid-related higher pilot absence rates, which have since subsided. We remain focused on taking steps to address pilot attrition, including increased hiring, simulator capacity, and training capabilities, which has been exacerbated by the industry-wide pilot shortage.”

However, with the rise of recent M&A activity, speculation has placed smaller operators in the spotlight.

2. LATAM Airlines Group (OTC: LTMAQ)

airline penny stocks to watch LATAM Airlines LTMAQ stock

South American airline LATAM Airlines could be another one of the airline penny stocks to watch. The company has been working through bankruptcy processes with its creditors for months. LATAM operates in Brazil, Chile, Colombia, Ecuador, and Peru.

Earlier this month, the company reported several critical developments, including obtaining support from its Chilean bondholders. Its agreement with bondholders will give unsecured creditors to “enhance” their recovery through an additional cash payment. Roberto Alvo, CEO of LATAM Airlines Group S.A., explained, “We have been promoting consensus among our creditors for some time now, and this is a great achievement. The agreement is undoubtedly beneficial to all parties, it attracts support for the Plan of Reorganization from the vast majority of the Group’s creditors and will allow LATAM to meet its goal of emerging from Chapter 11 on schedule and in a more competitive position than at the beginning of the pandemic.”

The news preceded LATAM’s latest monthly statistics update for April. LATAM said that passenger traffic for April was 69.4% compared to the period in 2019 (pre-pandemic). Its load factor also dropped by 2.1 percentage points and reached 81.2%. The airline expects operation of up to 73% for May compared to the same month in 2019 and plans to operate roughly 1,115 daily domestic and international flights in May.

This week there is a Confirmation Hearing set for May 17th and 18th. The court will evaluate the Plan of Reorganization and LATAM plans to target completion of the bankruptcy process and emergence from Chapter 11 later this year.

What to Know About Buying Penny Stocks on May 16th

3. Gol Linhas Aereas Inteligentes (NYSE: GOL)

airline penny stocks to watch GOL Linhas Aereas Inteligentes GOL stock

Brazil’s largest domestic airline, GOL Linhas Aereas Inteligentes, could also be one of the penny stocks to watch following the SAVE & JBLU stock news. The company offers low-cost flights in Latin America and has alliances with American Airlines and Air France-KLM. Considering Spirit is a US-based discount airline, GOL stock could be in focus thanks to speculation buzzing in the stock market today. GOL also has GOLLOG, its cargo transportation arm. It is responsible for delivering parcels to areas of Brazil and abroad.

This week, GOL announced its new CEO, Celso Ferrer, who will succeed Paulo Kakinoff starting in July. Kakinoff served as CEO since 2012, with Ferrer having been a long-time executive of the company in roles including Chief Operating Officer and Chief Planning Officer.

Over the last month, GOL also came into focus following a series of critical developments, including a landmark logistics services agreement with Mercado Livre.

“Our cargo operation begins an exciting new chapter for GOL and GOLLOG by integrating our synergies as the lowest cost operator in the region with the needs of Mercado Livre, the largest e-commerce platform in Latin America. This partnership brings high added value and will help to democratize logistics services for all Brazilians,” said Paulo Kakinoff in an April update.

Final Thoughts On Penny Stocks

Speculation is usually a significant factor when looking for penny stocks to buy. In this case, airlines are in focus amid a slew of tailwinds. First, overall market strength has helped give stocks a lift over the last week. Meanwhile, travel stocks have gained attention thanks to the hope of a rebound in summer vacation trips. With the JetBlue, Spirit Airlines hostile takeover news, smaller airline stocks may have gained some sympathy momentum in kind.

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The post 3 Airline Penny Stocks To Watch After JetBlue, Spirit Hostile Takeover Bid appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Economics

Expert on Bath & Body Works: ‘an easy double the next three years’

Bath & Body Works Inc (NYSE: BBWI) might have been painful for the shareholders this year, but the road ahead will likely be a rewarding one, says…

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Bath & Body Works Inc (NYSE: BBWI) might have been painful for the shareholders this year, but the road ahead will likely be a rewarding one, says the Senior Vice President and Portfolio Manager at Westwood Group.

BBWI separated from Victoria’s Secret

The retail chain separated from Victoria’s Secret in 2021, which, as per Lauren Hill, clears the way for a 100% increase in the stock price in the coming years. On CNBC’s “Closing Bell: Overtime”, she said:

[Bath & Body Works] has really strong pricing power. They have 85% of their supply chain in the United States and with the Victoria’s Secret brand now gone, I think it’s a wonderful buy; an easy double the next three years.

Last month, the Columbus-headquartered company reported results for its fiscal first quarter that topped Wall Street expectations.

Bath & Body Works is a reopening play

The stock currently trades at a PE multiple of 6.64. Hill is convinced Bath & Body works is a reopening name and will perform so much better as the world continues to pull out of the pandemic. She noted:

Customers have missed buying their scented products in store and as their social occasion calendars fill up, they are getting back out there and buying more gifts, including Bath & Body Works products.

Hill also dubbed BBWI a great pick amidst the ongoing inflationary pressures because of its reasonably priced products. Shares are down more than 50% versus the start of 2022.

The post Expert on Bath & Body Works: ‘an easy double the next three years’ appeared first on Invezz.

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Economics

Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Authored by Naveen Anthrapully via The Epoch Times,

A…

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Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Authored by Naveen Anthrapully via The Epoch Times,

A majority of C-suite executives are considering leaving their jobs, according to a Deloitte survey of 2,100 employees and C-level executives from the United States, Canada, the UK, and Australia.

Almost 70 percent of executives admitted that they are seriously thinking of quitting their jobs for a better opportunity that supports their well-being, according to the survey report published on June 22. Over three-quarters of executives said that the COVID-19 pandemic had negatively affected their well-being.

Roughly one in three employees and C-suite executives admitted to constantly struggling with poor mental health and fatigue. While 41 percent of executives “always” or “often” felt stressed, 40 percent were overwhelmed, 36 percent were exhausted, 30 percent felt lonely, and 26 percent were depressed.

“Most employees (83 percent) and executives (74 percent) say they’re facing obstacles when it comes to achieving their well-being goals—and these are largely tied to their job,” the report says. “In fact, the top two hurdles that people cited were a heavy workload or stressful job (30 percent), and not having enough time because of long work hours (27 percent).”

While 70 percent of C-suite execs admitted to considering quitting, this number was at only 57 percent among other employees. The report speculated that a reason for such a wide gap might be the fact that top-level executives are often in a “stronger financial position,” due to which they can afford to seek new career opportunities.

Interestingly, while only 56 percent of employees think their company executives care about their well-being, a much higher 91 percent of C-suite administrators were of the opinion that their employees believe their leaders took care of them. The report called this a “notable gap.”

Resignation Rates

The Deloitte report comes amid a debate about resignation rates in the U.S. workforce. Over 4.4 million Americans quit their jobs in April, with job openings hitting 11.9 million, according to the U.S. Department of Labor. In the period from January 2021 to February 2022, almost 57 million Americans left their jobs.

Though some are terming it the “Great Resignation,” giving it a negative connotation, the implication is not entirely true since most of those who quit jobs did so for other opportunities. In the same 14 months, almost 89 million people were hired. There are almost two jobs open for every unemployed person in the United States, according to MarketWatch.

In an Economic Letter from the Federal Reserve Bank of San Francisco published in April, economics professor Bart Hobijn points out that high waves of resignations were common during rapid economic recoveries in the postwar period prior to 2000.

“The quits waves in manufacturing in 1948, 1951, 1953, 1966, 1969, and 1973 are of the same order of magnitude as the current wave,” he wrote. “All of these waves coincide with periods when payroll employment grew very fast, both in the manufacturing sector and the total nonfarm sector.”

Tyler Durden Sat, 06/25/2022 - 20:30

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Spread & Containment

Optimism Slowly Returns To The Tourism Sector

Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn’t much of an improvement, as travel…

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Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn't much of an improvement, as travel remained subdued in the face of the persistent threat posed by Covid-19.

According to the United Nations World Tourism Organization (UNWTO), export revenues from tourism (including passenger transport receipts) remained more than $1 trillion below pre-pandemic levels in 2021, marking the second trillion-dollar loss for the tourism industry in as many years.

As Statista's Felix Richter details below, while the brief rebound in the summer months of 2020 had fueled hopes of a quick recovery for the tourism sector, those hopes were dashed with each subsequent wave of the pandemic.

And despite a record-breaking global vaccine rollout, travel experts struggled to stay optimistic in 2021, as governments kept many restrictions in place in their effort to curb the spread of new, potentially more dangerous variants of the coronavirus.

Halfway through 2022, optimism has returned to the industry, however, as travel demand is ticking up in many regions.

You will find more infographics at Statista

According to UNWTO's latest Tourism Barometer, industry experts are now considerably more confident than they were at the beginning of the year, with 48 percent of expert panel participants expecting a full recovery of the tourism sector in 2023, up from just 32 percent in January. 44 percent of surveyed industry insiders still think it'll take until 2024 or longer for tourism to return to pre-pandemic levels, another notable improvement from 64 percent in January.

Tyler Durden Sat, 06/25/2022 - 21:00

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