EbeneInfo – CA – MOON Home sales soar as California housing market defies Covid

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(Bloomberg) – When it comes to MOON real estate,’ Sunset ‘is still selling – even nine months after the start of the pandemic

With interest rates at one of the lowest levels on record, many tenants are re-evaluating their housing options, said Jason Oppenheim, star of « Selling Sunset, » a Netflix reality series featuring a team of brokers and the lavish properties they sell across Los Angeles

« Let’s face it, the 1% is doing very well right now, with markets at record highs and extremely low interest rates, » said Oppenheim, who heads his group brokerage firm. Oppenheim along Sunset Boulevard, around which the show is built « Houses are affordable right now and people want to get out of their cramped apartments »

Los Angeles is not alone Since Covid-19 was declared a public health emergency in March, homebuyers in California’s largest cities have not shied away from betting on real estate

Along with Los Angeles, San Jose, San Diego, Sacramento and San Francisco were the US markets with the largest increase in new mortgages during the third quarter, according to a study by ATTOM Data Solutions, which tracked metropolitan areas of the country with at least 1 million people And this has happened in the three months that have seen a record increase in the number of applications for residential purchase mortgages in the country

Nationally, lenders issued about 105 million home purchase mortgages in the third quarter, up 25% from the same period in 2019, according to data from ATTOM New home loans accounted for around 345% of total mortgage activity in the last quarter

« The housing market is still operating as if the pandemic-induced recession did not exist, » said Todd Teta, ATTOM director of products « Buyers and homeowners, drawn by low mortgage rates, have continued to queue for loans at levels not seen in over a decade »

“The point is, millions of well-skilled millennials are seriously buying homes and fighting over the shortage of homes to sell,” said Jeff Tucker, senior economist at real estate firm Zillow

Intense demand in a tight market has pushed monthly and quarterly growth in home values ​​to levels not seen since 2005, according to Zillow

The tight supply is mirrored in many California markets, where ‘for sale’ signs are quickly disappearing from the frontlines Enrollment in Los Angeles was down 175% year over year for the week ending Nov 14 San Diego, they’re 33% lower, and ads have dropped 372% in Sacramento In Riverside, east of Los Angeles, they’ve dropped by almost half, Zillow data shows

Some of the new buyers are moving straight to the high end after racking up fortunes thanks to the tech boom The high tech Nasdaq Composite Index hit a high in the third quarter and is near that level, while S&P 500 index hit a new high earlier in the week

“Instagram, TikTok, YouTube, kids are killing here,” Oppenheim said “I’m selling a ton of houses for $ 5-10 million to people on social media »

Yet not all markets are outperforming as job losses from the pandemic continue to weigh on consumer confidence elsewhere in the U.S Teta at ATTOM warned that « the pandemic and other factors could combine and stop the market boom »

Pittsburgh, Rochester in upstate New York, and Buffalo, Detroit, and New York are among the major metropolitan areas that saw mortgage lending declines from the previous year

Despite mixed signals, Zillow predicts 2021 will be the best year for home sales since 2006

« People have no qualms about buying in this market, » Oppenheim said. « We’re probably going to see a few good years ahead »

Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett is one of the richest people in the world, with a net worth of around $ 86 billion Unfortunately for small retail investors who want to follow in Buffett’s footsteps, buying even a share of Berkshire Hathaway is rather expensiveBerkshire’s Class A shares are trading at around $ 345,000 a share Class B shares for retail investors aren’t necessarily cheap, trading around $ 230 But just because Buffett’s company doesn’t -even has an expensive stock that there are no affordable Buffett stocks to buy Here are five stocks owned by Berkshire Hathaway that are priced below $ 25 per shareRelated link: How Bank Of America Became One Of Warren Buffett’s Best Investments Sirius XM Holdings Inc (NASDAQ: SIRI) Sirius is a radio operator satellite and owner of over 140 content channels The company also owns Pandora Media after a $ 3 billion buyout in 2019 Berkshire owns 50 million shares of Sirius XM worth around $ 320.5 million, and the stock is priced at just $ 6.41 per share Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) Teva is the world’s largest generic drug maker Buffett recently added five new health stocks in the third quarter, but it owns its stake in Teva since 2018 Teva is a classic Buffett value stock, trading at just 35 times future earnings Buffett owns 427 million shares of Teva a va their approximately $ 400 million, and each share costs only $ 9.35 Liberty Latin America Ltd (NASDAQ: LILA) (NASDAQ: LILAK) Liberty Latin America is a member of the Liberty Media Group which was separated from its parent company in 2018 Liberty Latin America is a telecommunications company that serves over 6 million homes in Latin America and the Caribbean The company has two classes of shares, and Buffett owns a combined 46 million shares worth $ 48.1 million The good news is that both share classes are trading at around $ 11.90 per shareSuncor Energy Inc. (NYSE: SU) It has been a brutal year for the oil and gas industry, and Canadian oil exploration and production company Suncor Energy. is no exception Stocks are down 535% since the start of 2020, but Buffett isn’t giving up Buffett urged investors to be greedy when others are afraid, and there is a lot of fear in the world. energy side these daysBerkshire owns 192 million shares of Suncor valued at around $ 296.4 million The stock is priced at just $ 15.44 per share Barrick Gold Corp (NYSE: GOLD) Buffett has always been very skeptical of gold as that investment, which is why many followers were surprised when Berkshire revealed a large stake in gold miner Barrick Gold earlier this year Buffett may anticipate a surge in gold prices after US measures Government’s unprecedented economic stimulus this year Berkshire owns 12 million Barrick shares worth $ 290 1 million Share trades at just $ 24.50 per share Illustration by Joel Stralnic See more Benzinga * Click here for options trades by Benzinga * How Options Traders Play Zoom Video As Spike Coronavirus Case * Josh Brown Loves GM Right Now: «  They Are Going From A Combustion Engine Giant To An Electric Giant  » (C) 2020 Benzingaco m Benzinga does not provide investment advice All rights reserved

Total return It is a combination of the growth and dividend generated by a stock The dividend is a bit like a guaranteed return, even if the stock does not perform or if the market reverses
This is why companies that offer dividends are considered shareholder-friendly They return a portion of their net profits to their investors and generally return that dividend, even in difficult times
Plus, even small dividends on stocks outweigh interest from savings accounts, money markets, and CDs You can invest your money at a better price than keeping it in the bank and get an additional growth boost InvestorPlace – Stock News , & stock market tips Trading tips
But that doesn’t mean you can pick any stock that delivers a dividend When times are tough, a company can cut its dividend to keep the business afloat Now, not all companies that pay dividends – some have been paying and increasing their dividends for more than 50 consecutive years

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However, the seven “F-rated” dividend stocks to avoid here are not in that narrow group.They are in struggling industries and struggling to keep their stocks on the rise, and companies running:
Strategic Education (NASDAQ: STRA)
Equity Residential (NYSE: EQR)
Federal Realty Investment Trust (NYSE: FRT)
Kennedy-Wilson Holdings (NYSE: KW)
Energy Transfer LP (NYSE: ET)
CF Industries (NYSE: CF)
Walgreens Boots Alliance (NYSE: WBA)

Dividend stocks to avoid: strategic education (STRA)
Source: Shutterstock

The name might not be familiar, but a few of its products might stand out – Strayer University and now Capella University Both are online and Strayer has 78 campuses around the US with its home campus at Washington, DC
In early November, STRA announced the merger with Capella, which will provide some assistance to the two organizations in expanding enrollment around the US during the novel coronavirus pandemic.
STRA’s recent third quarter numbers were down from last year, due to the pandemic and it also recently sold operations it had in Australia and New Zealand There is also talk of creating a culinary school with Sur La Table
We’re working hard to find a way to be successful in this market, but STRA stock is down 44% year-to-date And another bad quarter or two could mean the dividend could be cut, resulting in the free fall of the action

Residential Equity (EQR)
Source: IgorGolovniov / Shutterstockcom

As a Real Estate Investment Trust (REIT) you would think EQR would have a field day right now
The problem is, EQR is in the apartment rental market in big cities like San Francisco, Boston and New York. It means two things, neither of which is good
First, the pandemic has been particularly difficult in large urban areas due to the density of the population And when these cities close people lose their jobs It means that rent is no longer a reliable source of income
Second, people who still have jobs and work from home are starting to look outside the big cities for work And that means an increase in vacancies
Double whammy hits EQR stock

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The stock is down 26% year-to-date and has a 41% dividend The risk here is that things could get worse before they get better given the resurgence of the pandemic

Federal Real Estate Investment Trust (FRT)
Source: Shutterstock

This REIT has been around since 1962 and has a very good dividend record.But the problem is, while its dividend may be sure, the dividend will not help your return to the stock, as its properties are focused on places where the pandemic is. complicates life for retailers and tenants
FRT focuses on mixed-use properties in high-end markets in major urban centers around the US The problem now is that REIT is exposed to the double whammy of reduced foot traffic for high-end retailers. range (and keeping those storefronts occupied) and reduced interest from homeowners and tenants moving to high density urban areas
And with the reappearance of potential localized lockdowns in major cities as the pandemic worsens, this will continue to affect FRT’s ability to come back at good times.Worst-case scenario, the dividend may be at risk
But even if its dividend remains intact, the stock is down 30% since the start of the year, so its 4A dividend of 7% is a cold comfort as the downside risk increases.

Kennedy-Wilson Holdings (KW)
Source: Shutterstock

Although KW qualifies as an international real estate company, it functions as a REIT enough to be listed in the National Association of Real Estate Investment Trust directory.
It has multi-family properties as well as commercial and hotel properties in the US and Europe This means it is under the same pressures as previous REITs, but globally And its hospitality hub is particularly stressed, since European nations are locked again
There is still some optimism for KW stocks in the markets, but risk levels are rising And its current price / earnings ratio of 28x looks a bit rich for a company with so much risk.

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Also, this P / E is after the stock has sunk 27% year-to-date Given the current situation around the world, thinking that 2021 will be on track for a significant global economic recovery may be a little optimistic And its rich 5 A 4% dividend doesn’t turn as red to black, and it could be in jeopardy if the pandemic has its way this winter

LP energy transfer (ET)
Source: Casimiro PT / Shutterstockcom

The middle energy market – pipelines – is generally a solid place when energy prices are volatile, as these companies act as toll takers for companies using their pipelines. The price of oil and natural gas does not matter to these companies
But what matters is demand And it looks like the US is under siege by Covid-19 and at best that means people will stay close to home Certainly the winter season in much of the country will increase the demand for natural gas for heating, and this is the specialty of the EP
Yet this seasonal demand is built into its pricing and performance models This quarter will certainly be weaker than a year ago
Limited partnerships are the energy version of REITs They reject dividends for investors as a percentage of their net profits But when prices are hit, dividends go up
ET stock is down 53% year to date and it has a whopping 102% dividend It sounds good, but the more it rises, the higher the risk of dividend reduction or elimination. would also be very bad for the stock

CF Industries Holdings (CF)
Source: Shutterstock

This fertilizer company has been around since 1946 so it has seen tough markets over the years And in general, fertilizers are a fairly stable activity
CF is the world leader in converting natural gas to nitrogen It has nine manufacturing plants in the US, Canada and the UK
The only problem is that this sector can be cyclical When economies are strong, the demand for agricultural products increases, as does the demand for fertilizers.
Not so now Although the CF is not in dire straits and will likely make it through this tough global market, it is not time to fish for the ground stock

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The CF stock is down 33% year-to-date, so its 3A 7% dividend won’t save it from a tough year And we don’t know where the bottom is, so think the stock has seen its worst is a risky bet if you hope to sit on that 37% dividend here

Walgreens Boots Alliance (WBA)
Source: saaton / Shutterstockcom

On the positive side, WBA stock has 45 consecutive years of dividend growth On the downside, the stock has been on a significant downtrend since late 2018 At the time it was trading close to $ 85 It is now trading around $ 37
Its fiscal fourth quarter numbers were released in October and they were strong The pharmacy side of the business was strong if unspectacular, same-store sales increased by around 5%
There’s no fear that WBA will disappear from the market But that still doesn’t mean it’s a stock worth owning now.It’s still transitioning from its $ 17 billion purchase to nearly 2,000 Rite Aid stores (NYSE: RAD) in 2018 Given RAD’s difficulties, WBA might not be able to repair some of these stores and this could be a drag on the whole business
WBA stock is down 36% year-to-date, so its 5% dividend is impressive, but that cannot be the reason to rely on this stock’s ability to recover from here
At the date of publication, Louis Navellier does not have any long position in any of the shares in this article Louis Navellier did not (directly or indirectly) have any other positions in the securities mentioned in this article
The InvestorPlace research staff member primarily responsible for this article has not held (neither directly nor indirectly) any positions in any of the securities mentioned in this article.
Louis Navellier had an unconventional start, as a graduate student who accidentally built a stock market beating the market – with returns rivaling even Warren Buffett In his latest feat, Louis discovered the ‘master key’ to profiting from the greatest technological revolution of this (or any) generation Louis Navellier may hold some of the aforementioned titles in one or more of his newsletters
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Elizabeth Holmes, former CEO of Theranos, wants to prevent information about her past income and « luxury » spending from being revealed in court, CNBC reported What happened: Holmes’ defense attorneys have filed a motion to exclude reports showing her income and expenses, as they could turn the jury against the accused « The jury should not be subjected to arguments regarding Ms. Holmes’ alleged purchase of luxury travel, of » good wine « or » delivery of food to his home « , » CNBC said citing the defense team in its request »Many CEOs live in luxury housing, buy expensive (vehicles) and clothes, travel luxuriously, and partner with famous people – as the government claims Holmes did « Holmes had a private jet and several assistants to » do her shopping, « according to CNBC Why it matters: Holmes faces dozens of fraud charges and up to 20 years in prison She and her partner Ramesh Balwan , former president and chief operating officer of Theranos, told investors, board members and the general public that the company’s developing products would be able to diagnose any disease, including cancer and diabetes, from a single drop of blood Privately valued at one point at $ 9 billion, the startup was exposed by a Wall Street Journal investigation and subsequent public review which found that technology was non-existentThe trial is set to begin on March 9, 2021 in San JoseImage: WikicommonsView more from Benzinga * Click here for Benzinga options trades * Wish Files for IPO, recognizes challenges of its supply chain rooted in China * Apple is trying to ` «  Watering Down  » China’s Forced Labor Bill: Washington Post (C) 2020 Benzingacom Benzinga Does Not Provide Investment Advice All Rights Reserved

« Throwing everything you can into your retirement account isn’t necessarily the best strategy for people who follow FIRE, » says certified financial planner Victor Gersten

« Quarterly baskets of the 10 most widely held stocks by mutual funds and hedge funds outperformed the S&P 500 six and 12 months later, » Citigroup equity strategists said

Larry Summers is « skeptical » of blanket loan cancellation being discussed as President-elect Joe Biden comes to power, saying debt cancellation would benefit « well-off » borrowers the most

Let me start this note by saying it’s a joy to see General Electric (NYSE: GE) regain respect It’s a great American company that has been in the penalty box too long Until recently that was the end of jokes Some Wall Street pundits added injury insults by downgrading GE stock even when it was $ 7 It was a mistake and investors finally admitted it
Source: Miscellaneous Photography / Shutterstockcom

Today’s rating is going to look bearish, but I remind you that I have recommended it several times before.More recently I suggested that it had upside potential about a month ago At the time, it was not fashionable to be a GE for long Now everyone is on board, but this is where my main caveat lies
Recently, experts like Goldman Sachs blessed it as a great idea for next year My concern here is price, not business failure I have great confidence in GE’s continued success in this long recovery It’s a process, not a moment in time InvestorPlace – Stock news, Stock market advice & Trading advice
Even in the most difficult year on record, GE management finally silenced the naysayers I don’t blame those who sold it last year The company gave us plenty of reason to doubt it The embarrassing stories that unfolded along the way are the ones they write about in the books But eventually, and after many shift changes, they put together a team that got the job done. Now it’s still a massive company with nearly $ 100 billion in revenue last year It’s 60 times bigger than Shopify (NYSE: SHOP) and 153 times bigger than Zoom (NASDAQ: ZM)
Yet each of them has a larger market cap than GE.

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In addition, the company structure is clearer than ever General Electric operates in four major segments Three of them are currently hot topics, including energy, health and renewable energy The fourth, unfortunately, swimming upstream – the aviation industry grapples with the spread of Covid-19, but it’s also on the mend
The valuation of GE shares is not yet a problem
Valuation is important, and it gets a little more difficult in the short term This is good for now because in absolute terms a forward price / earnings ratio of 24x is not inflated But it is at a level where investors generally seek growth
Management has just restructured its operations so measuring sales against the past is misleading It will normalize over time In the meantime this could become a sticky point for critics Remember I’m a GE fan so I have a good idea of ​​this potential friction

The GE stock is now selling at one-time sales There are absolutely no baked hops in it This means that investors are completely realistic and know what they are doing by owning it If I am long in the stock I can stay there long term In the meantime those looking to get in now should be patient There might be better starting points lower and soon
The other reason I’m hesitant to launch significant new positions now is the extrinsic risk of indices They just won’t stop setting new highs, even in the face of bad news This leaves the door open for a correction in the blind side As it stands, my guess is it would be an ordinary plunge If it happens, it would provide great opportunities to buy GE shares
Starting partial long positions is a happy medium It relieves the itching and eases the feeling of FOMO that runs through us all
Patience is a virtue now
Source: Charts by TradingView

Technically, there are also reasons to temper short-term enthusiasm as well GE stock is up 60% from the September low and 45% since my last write It deserves a rest It is now near the retracement of Fibonacci at 50% Correction Pandemic Crash Another smaller sign is the Nov 18 candle that looks like an island This is now becoming a hurdle for the bulls to overcome These are not stock killer concepts, but simple ones reasons to pause or make a rally go away I don’t expect a complete collapse, but entry into the stock would make a lot more sense of $ 1 less
I expect there to be support throughout $ 8 so it’s not short here But there is also level resistance from previous battles Zooming out on the weekly chart also shows that ‘he entered a pivot zone He’s been in contention since the 2018 crash
Basically he’s trying to get out of a hideous down-treble channel and he’s hit the edge of it It’ll take a few tries to break through The bulls can possibly do it, but it’ll be a slog from here Most of the easy work is made
At the date of publication, Nicolas Chahine did not hold (neither directly nor indirectly) any position in the securities mentioned in this article.
Nicolas Chahine is the Managing Director of SellSpreadscom
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Its market cap is a modest $ 932 million, and last year it said it barely sold any electric cars. It was a bumpy ride, the stock nearly doubled in the first four days of the last week, after an announcement from the Texas Environmental Quality Commission that two models Kandi plans to launch in the US qualify for tax cuts Then, on Friday morning, stocks fell more than 20% after the company said it would raise $ 100 million through a private placement of shares – the second dry placement in the market in two weeks

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* This weekend’s Barron’s cover article explains why now is the time for investors to start buying overseas * Other featured articles examine emerging market value stocks that are worth the detour, alternative ways to invest in high-priced stocks and the post-vaccine sweet spot for stocks * Additionally, the outlook for a Chinese EV maker, mall operator, banks regional, virtual reality and more The Investors, Put the Rest of the World on Your Radar coverage by Reshma Kapadia suggests that the United States has beaten foreign markets in the past decade, but now is the time to start shopping abroad Among the twenty stock picks from the international roundtable were Alibaba Group Holding Ltd (NYSE: BABA) and Taiwan Semiconductor Mfg Co Ltd (NYSE: TSM) Matt Smith « A small electric vehicle from China is on mad race in the market « shows how Kandi Technologies Group Inc (NASDAQ: KNDI), a Chinese producer of gasoline all-terrain vehicles and electric car parts, embodies the promise (and potential pitfalls) for segment investors. electric vehicles The company plans to launch a small electric car in DecemberIn “The Mall Is Not Dead It’s Time to Buy Simon Property Group Stock,” Liz Moyer argues that Simon Property Group Inc (NYSE: SPG ), Largest US Mall Operator, Uses Financial Strength to Overcome Retail Crisis The article also points out that the REIT has a dividend that earns nearly 7% from Synovus Financial Corp (NASDAQ : SNV) and other stocks in this beaten group have seen a strong rally in recent weeks, notes Carleton English in « 5 Regional Bank Shares To Buy After The Cov Rally id-Vaccine « Find out why Barron’s thinks they have even more benefits In Bill Alpert, » The power of the socket has skyrocketed this year How Walmart and Amazon have also benefited from the green energy rally, « see the two big beneficiaries from one of this year’s market leaders, Plug Power Inc (NASDAQ: PLUG), a pioneer in clean power supplies for forklifts and other gas guzzlers « Emerging market value stocks are worth a look » by Craig Mellow explains why emerging market value stocks look particularly attractive, assuming the growth stock rotation has started Find out if ICICI Bank Ltd (NYSE: IBN) is one of those stocks worth checking out See also: The Bulls and Benzinga’s Bears of the Week: Moderna, Palantir, Tesla and more There are easy ways for novices without a lot of money to start building a wallet in some of the p The big names in the market, such as Amazonom, Inc (NASDAQ: AMZN), according to Daisy Maxey « Daunted by Lofty Share Course? Here Are 3 Ways For Newbie Investors To Get Into The Stock « In » How the Vaccine Age Could Be a Great Spot for Stocks, « Jacob Sonenshine Explains Why Pfizer Inc Vaccines (NYSE: PFE) and Moderna Inc (NYSE: MRNA), and the economic recovery they are expected to bring, might not fuel much inflation Find out how this might benefit stocks Max A « Virtual Reality Doesn’t is no longer just a dream « Cherney says we’ve been talking about virtual reality for decades, but it’s hardly going anywhere However, six years after Facebook, Inc (NASDAQ: FB) paid $ 2 billion for the company virtual reality Oculus deal, the deal could start to bear fruit, thanks to the launch of its Quest 2 Also in this week’s Barron’s: * A value fund that goes beyond expectations * What has helped stocks to exceed Bad Headlines From Last Week * How To Protect Portfolios In A Low Yield, High Volatility Environment * Why Low Volatility Coming Does Not Mean Smooth Trading For Stocks * Five ETFs Ride On The Rebound In Value stocks * Is forgiveness of student loans a bad economy * Bucket list trips booked in record numbers * The ongoing debate over bitcoin’s viability At the time of writing, the author had no positions in the mentioned stocks Keep up to date with the latest news and trading ideas by following Benzinga on Twitter See more from Benzinga * Click here for Benzinga options trades * Notable Insider Buys from Last Week : Avis, Biglari and more * Bulls and bears of the week from Benzinga: Moderna, Palantir, Tesla and more (C) 2020 Benzingacom Benzinga does not provide investment advice All rights reserved

Do we finally have blue skies for airline stocks? It’s too early to ring it all, but things are sure to improve Pfizer’s (NYSE: PFE) vaccine breakthrough announcement last week sparked a seismic shift in the stock market Traders have started to dump their stocks tech and work from home while buying airlines, cruise lines, restaurants, retailers and other pandemic recovery actions
And that makes a lot of sense Since then we’ve heard even more positive news For example, the Moderna vaccine (NASDAQ: MRNA) has also shown great results in clinical trials, providing the world with a safety net if something goes wrong. with the Pfizer candidate
As such, we can hope to start hoping for a post-pandemic world once and for all InvestorPlace – Stock News, Stock Market Tips & Trading Tips

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So, with the aviation and aerospace sectors on the mend, traders can start making moves under these names Here are the outlooks for seven major airline stocks:
United Airlines (NASDAQ: UAL)
Southwest Airlines (NYSE: LUV)
American Airlines (NASDAQ: AAL)
Delta Airlines (NYSE: DAL)
Hawaiian Airlines (NASDAQ: HA)
Volaris (NYSE: VLRS)
Copa Airlines (NYSE: CPA)

Airline stocks to buy: United Airlines (UAL)
Source: travelview / Shutterstockcom

United Airlines is in a middle ground, as far as the big US carriers go Its financial situation is much better than that of the United States, which allows it to have some flexibility.However, its situation is more precarious than that of the Southwest or the Delta As a result, the UAL action is potentially the most intriguing of the big four airline actions It has a wide range of potential results – from very good to near-fading
So far things appear to be going pretty well for United, however that said, analysts expect United Airlines to lose $ 26.50 per share of earnings in 2020 This is not a printing error – the company is set to lose something in the order of $ 7 billion or $ 8 billion for the year Analysts also expect another large loss for 2021, just over $ 4 per share
Given that UAL stock started the year at $ 90 – before there was a pandemic – and lost around $ 30 outright to its negative profits, it’s highly unlikely that stock will return to more. $ 60 per share anytime soon Factor in longer-term loss of demand – and the negative effects of United’s capital increase this year – and the market price now makes sense.
If the UAL stock was worth $ 90 before, it probably isn’t worth more than $ 40 or $ 50 per share now Therefore, stocks look pretty affordable at the moment.

Southwest Airlines (LUV)
Source: Eliyahu Yosef Parypa / Shutterstockcom

In 1978, the government deregulated the airline industry This allowed airlines to compete directly on price and to launch competitive price and market share wars against each other. It also allowed old regional airlines like Southwest to compete nationally.This deregulation was devastating for most airlines – in fact, all but one of the country’s major airlines subsequently went bankrupt.
The only exception? Southwest Airlines Incredibly enough, the LUV stock has produced a total return of around 36,000% since deregulation was enacted in 1978 This is a very good number for a company in such a historically difficult industry.
Southwest’s earlier superior returns hinged on a few key distinct edges For a long time the company had some of the best fuel hedges in its class, insulating it from the high oil prices that crushed other airlines between 2007 and 2012 The company also had a much lower cost base than other airlines as it avoided expensive unionized labor contracts and expensive big city airports.
In recent years, however, many of the Southwest’s old advantages have eroded The firm is no longer a rambling upstart but rather one of the big dogs As such, its ability to function distinctly has slipped by a degree In other words, don’t expect LUV stock to be the big winner it was before.

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Yet with a blue chip balance sheet and wise management, Southwest is an excellent choice for investors seeking a secure position among otherwise volatile airline stocks.

Delta Airlines (DAL)
Source: Lerner Vadim / Shutterstockcom

Of the three big traditional carriers, Delta entered 2020 with the best financial position by far It gave the company a ton of flexibility to deal with the pandemic DAL avoided committing to the level of dilution and sales assets that other major carriers had to endure
In addition, Delta’s losses were a smaller proportion of its previous valuation To put some numbers on that, DAL stock has traded around $ 60 as 2020 approaches Now analysts expect to lose just over $ 10 a share this year – a much better ratio than United All of this to say that Delta has seen much less degradation of its pre-pandemic value than its rivals.
Currently, Delta stock largely reflects this advantageous position – its stock is only down about 36% for the year.As the safest game of the three main traditional airlines, DAL stock is a reasonable choice here Assuming air travel picks up speed early next year, the stock could return to the $ 50 mark in the next few months This makes it one of the most promising airline stocks.

American Airlines (AAL)
Source: GagliardiPhotography / Shutterstockcom

Next on my airline stock list is American Airlines, which had a terrible 2020 As the pandemic approached, the company was arguably the most aggressive of the major airlines It took tens of billions of dollars in debt largely to buy back more of its own stock
It seems Americans believed the airline industry had overcome its previous problems and would be profitable forever. In 2017, CEO Dough Parker said of the airlines, “The old world was dark, but now it was dark. ‘is the light […] I know I look like an evangelist talking about this « He continued, » I don’t think we’re ever going to lose money again  »
Of course, that faith was misguided And because the American spent so heavily on share buybacks and other unnecessary expenses, he entered the pandemic with the most debt of all the major carriers.

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As a result, American has had to massively dilute shareholders to raise cash and keep the lights on, and as its losses mount, the company will be forced to issue even more stocks and high yield debt. This will keep a lid on the AAL share price

Hawaiian Airlines (HA)
Source: Shutterstock

Although Hawaiian Airlines is not the most well-known U.S. carrier, it stood out from other airline stocks last week.
Last Monday – the day Pfizer vaccine news hit – HA stock was the biggest gainer in its industry Stocks soared more than 50% HA stock’s ability to rise so much in one day testifies to both the risk and the opportunity associated with the regional carrier
What makes Hawaiian Airlines unique? Namely, the business is a heavy game on tourism According to the State Government of Hawaii, the state has suffered much worse than the national economy as a whole Analysts see Hawaii’s economy to contract 123% for the whole of 2020 This is much worse than the 5% contraction the US economy is expected to face during the year
The reason for Hawaii’s striking underperformance isn’t hard to pinpoint – tourist arrivals to Hawaii fell 988% in the second quarter year-over-year (year-on-year) Missing tourists meant missing the sale of tickets for Hawaiian Airlines In addition, the collapse of the tourism industry has dealt a blow to local businesses in Hawaii as a whole
But the good news is that if Hawaii is among the hardest-hit states, it could be on the verge of making a huge comeback.Assuming the vaccine is successful and becomes widely available soon, the company’s shares could allow for a stunning recovery. Already, the state government of Hawaii has lifted its old mandatory 14-day self-quarantine for passengers arriving on the islands And Hawaiian Airlines still had $ 979 million in cash at last earnings report
Combine these factors and Hawaiian Airlines should have enough runway to last until tourism comes back to life in 2021.

Volaris (VLRS)
Source: Shutterstock

Another airline stock pick that investors should consider is the Mexican hyper-discount Volaris The company is attractive for several reasons compared to much of its US-based competition
On the one hand, Volaris has a much lower cost base as it pays a lot of its expenses in Mexican Pesos rather than US Dollars – for example, the difference in salary between a pilot based in Mexico City and New York can be. considerable More broadly, the company is run with an ultra low-cost structure It has a simplified and slim flight offer with a minimum of frills
This means that, historically, Volaris has had more correlation with the price of oil than other airlines This is because jet fuel proportionately represents a much larger share of Volaris’ cost base – therefore – given the current economic downfall – airline profits more than competitors The cost of jet fuel has fallen and this matters much more to Volaris’ bottom line than competing airlines that have overheads in other areas
In addition, Mexico’s aviation sector is already booming Based on figures filed by three of Mexico’s publicly traded airport operators – ASUR, PAC and OMA – traffic has now returned to 55% of its normal level This is well ahead of what we are seeing in US and Europe Volaris itself has returned to 82% of normal traffic levels, absorbing passengers from struggling competitors

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Mexico had a huge wave of Covid-19 this summer, but it quickly passed out As a result, it was able to return to something like normal much faster than the rest of North America The country has already opened its international borders and tourism sector for months This should greatly benefit Volaris in the coming months VLRS shares have already risen in recent weeks, but consider buying in case of withdrawal

Copa Airlines (CPA)
Source: Carlos Yudica / Shutterstockcom

When it comes to Latin America, the last choice on my list of airline actions is Copa, Panama’s main airline.While Panama itself is a small market, Copa has an extensive hub system and of rays stretching from the United States to South America via Panama City Central Airport And – for what it’s worth – the CPA has historically surpassed most of its peers, both in North America and in Latin America
This is in part due to specific competitive advantages For example, there is no major rival airline in most Central American countries This has allowed the Copa to charge unusually high fares on short journeys in and around its main airport in Panama City More broadly, management has also avoided the temptation to grow too quickly, eschewing the empire building that brought down now bankrupt rivals Latam (OTCMKTS: LTMAQ) and Avianca (OTCMKTS: AVHOQ) These core strengths should help the CPA title. to continue its recovery in the future
As of the publication date, Ian Bezek does not hold (neither directly nor indirectly) any position in the securities mentioned in this article.
Ian Bezek has written over 1,000 articles for InvestorPlacecom and is looking for alpha He also worked as a junior analyst for Kerrisdale Capital, a $ 300 million New York-based hedge fund You can reach him on Twitter at @irbezek
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Eventually, once Donald Trump finally admits he lost the election, Joe Biden and his transition team can get to work implementing an infrastructure plan that would see the federal government invest 1 $ 3 trillion over the next decade It’s a plan that will help infrastructure stocks across the country
Now, before you got all excited that the country’s crumbling infrastructure is going to get a facelift, Donald Trump was supposed to have a plan He wanted to spend $ 1 trillion on infrastructure during his presidency.
Sadly, for America, he was more concerned with giving tax breaks to billionaires than fixing infrastructure that was once the envy of the world.InvestorPlace – Stock Market News, Stock Market Tips & Trading Tips
While Joe Biden appears to have a lot more substance than the current White House member, the Republican-controlled Senate will almost surely block any “New Deal” legislative initiative.
Needless to say, there is nothing safe when it comes to infrastructure

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Therefore, if you are looking for infrastructure stocks to buy, you might want to bet on which ones will work well with or without an infrastructure plan. Here are seven buy stocks that should win regardless of who owns it over the next decade:
American Water Works (NYSE: AWK)
Berkshire Hathaway (NYSE: BRKA, NYSE: BRKB)
CenterPoint Energy (NYSE: CNP)
NextEra Energy (NYSE: NEE)
NV5 Global (NASDAQ: NVEE)
Terex (NYSE: TEX)
Valmont Industries (NYSE: VMI)

Infrastructure stocks to buy: American Water Works (AWK)
Source: Shutterstock

The water utility released its third quarter results on November 4 They were better than analysts’ expectations, generating earnings per share of $ 1.46, 8 cents above consensus It was also 13 cents higher than a year earlier
Due to its strong third quarter 2020 results, American Water Works management has raised its 2020 earnings forecast to a midpoint of $ 3.90, 6 cents higher than its previous guidance for the year.
In the first nine months of fiscal 2020, the company invested $ 1.38 billion in its infrastructure and planned to spend an additional $ 520 million in the fourth quarter for a total of $ 1.9 billion in its fiscal year.
Muslim Farooque of InvestorPlace recently recommended AWK stock as one of three utilities investors could count on He especially likes its 55-cent dividend which currently pays 14% Year-to-date through November 13, its stock is up 33% and 218% on an annualized basis over the past decade
AWK stock was one of my 20 stocks to buy if Biden wins the election

Berkshire Hathaway (BRKA, BRKB)
Source: Jonathan Weiss / Shutterstockcom

While most investors will likely view Warren Buffett’s holding company as an owner of insurance companies, such as Geico, with a massive stock portfolio, it also owns one of the largest US railroads – Burlington Northern – and Berkshire Hathaway Energy (BHE), a collection of energy-related companies with over $ 100 billion in assets under their control
For example, BHE Renewables operates in nine states with 1,536 megawatts of solar capacity, 1,665 MW of wind power, 345 MW from geothermal facilities and 138 MW from traditional hydroelectric facilities in Hawaii and the Philippines.
Interestingly, one of the various companies operated by BHE is HomeServices of America, the largest residential real estate brokerage in the US.It operates under several brand names, including Berkshire Hathaway Home Services, generating over $ 135 billion in volume. in sales across the countryIn the first nine months of 2020, Berkshire’s railways, utilities and energy revenues totaled $ 305 billion, with a net profit of $ 6.3 billion

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If it were a S&P 500 company, its rail, utilities and energy companies would be on par with some of the largest US companies

CenterPoint Energy (CNP)
Source: Shutterstock

The company’s business dates back to 1866, when the Houston Gas Light Company was formed to manufacture and sell gas from coal and shellfish. More than 154 years later, it serves more than 7 million customers in the US, operating electric and natural gas utilities in eight states with assets totaling more than $ 33 billion
On November 5, CentrePoint released its third quarter 2020 results, including a 15-cent depreciation for its mid-level instruments.Excluding this, it earned 29 cents from its utilities business and 5 cents from its mid-level investments for a total of 34 cents, down from 47 cents a year earlier
Due to its strong results from its utilities business, CentrePoint has raised its 2020 target for the unit to between $ 1 12 and $ 1 20 a share He is confident that he can continue to increase his utility revenues from 5 to 7% per year based on a 10% increase in the rate base
The crown jewel of its assets is Houston Electric, which has experienced 33 consecutive years of growth from its customers in the Houston area. Because of this success, he plans to increase his capital investment over the next five years (2021-2025) by $ 3 billion for a total of $ 16 billion.This investment will allow him to increase his income by 5 at 7% per year, as mentioned previously
CentrePoint has an attractive 24% dividend yield This is definitely the underdog among these seven infrastructure stocks

NextEra Energy (NEE)
Source: IgorGolovniov / Shutterstockcom

This is probably my favorite utility stock
Not only does it operate Florida Power & Light, one of the largest rate regulated utilities in the country, which generates 54% of its overall profits. It is also the world’s largest generator of renewable energy from wind and sun and battery storage
It sits at the center of the transition from dirty to clean energy.I recently said that NextEra has overtaken Exxon Mobil (NYSE: XOM) in terms of market capitalization although it still produces a significant portion of its electricity from coal and natural gas
The important thing is that we understood that the world wants clean energy I don’t think XOM has mastered this reality yet
As I said in my article, NextEra’s backlog for renewable energy projects was over 15,000 megawatts, which suggests that its capacity in this area will double in the next few years.

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It just continues to serve shareholders As infrastructure stocks disappear, they cannot be beaten

NV5 Global (NVEE)
Source: Shutterstock

I have to admit that I don’t spend a lot of time analyzing publicly traded consultants like NV5 Global In fact, I had never heard of it before seeing its name on a list of stocks for an exchange-focused fund. on infrastructure
It turns out that NV5 operates more than 100 offices in the US and elsewhere with a particular emphasis on consulting in infrastructure projects It operates three segments: Infrastructure, Building, Technology & Science and geospatial solutions
As of the third quarter ended October 3, 2020, its infrastructure segment accounted for 56% of its $ 170 million in revenue and 59% of its $ 33 million in pre-tax profit through acquisitions and increased business from liquefied natural gas consultancy, revenue and profit before tax of its Infrastructure segment increased 90% and 407%, respectively, over the same period last year
In Q3, NV5’s backlog grew 9% in Q2 and 23% in Q3 2019 It has a strong roster of opportunities in all three operating segments in Q4 2020 and 2021
It finished the third quarter with a backlog of $ 572 million, up significantly from $ 151 million in Q3 2015 Its target is to generate an annual execution rate of $ 1 billion by 2020
If America goes on an infrastructure frenzy, you can bet it will

Terex (TEX)
Source: Shutterstock

I’m one of those weird people who see a brand name and immediately want to know who owns it and if it’s a public company The other day I walked past a restaurant that I frequent a bit , and there was a Genie scissor lift outside the building My brain immediately went into thinking mode, trying to remember its owner
Well that would be Terex, a Connecticut company whose aerial work platforms (AWP) and materials processing (MP) machines are used in infrastructure-related projects every day of the year on five continents. different
Genie is part of the company’s AWP segment It generates 60% of the company’s revenue In the first nine months of fiscal 2020, AWP sales were $ 1.37 billion, 58% lower than a year earlier due to Covid-19
However, as stated in its Q3 2020 press release, it expects the fourth quarter to be the strongest from a free cash flow perspective. In the third quarter, it managed to generate $ 76.6 million in free cash flow despite a significant reduction in its net income and sales during the quarter
“Terex’s third quarter results demonstrate our ability to offset challenging macroeconomic conditions by focusing on the levers under our control,” said John Sheehan, Chief Financial Officer of Terex “We have mitigated these headwinds through disciplined management of costs and working capital to generate $ 54 million of positive free cash flow in the quarter Our free cash flow performance reflects continued improvement in our business and strong execution  »

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Valmont Industries (VMI)
Source: Shutterstock

In August 2014, I recommended three agricultural stocks
Valmont Industries, AGCO (NYSE: AGCO) and Deere & Company (NYSE: DE) All three had suffered a bit of backlash from farming that year I thought their recent weakness was making them buy against the grain
In the six years since the VMI rose 12%, AGCO is up 102% and Deere is up with a gain of 197% For comparison, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) is up 88% over the same period
To say that I have been disappointed with Valmont’s performance in recent years would be an understatement. That said, despite an annualized total return of 77% over the past five years, or half of the US markets as a whole, VMI has still managed to deliver a 15-year total annualized return of 114%, 160 basis points higher than the entire US markets
In the long run, the company is focused on growing its revenue by 5-10% per year, earnings per share by 10% or more every year, converting more than 100% of its net income into cash flow. free cash flow and obtaining operating margins of 12% or more
Unfortunately, like most businesses, Valmont’s cumulative numbers are not very good
However, in the third quarter ended September 26, sales increased 63%, adjusted earnings per share increased 137%, free cash flow of $ 202 million (almost double its revenue) and operating margin. by 93%
While his last quarter left work to be done, his free cash flow for the last 12 months is $ 250 million for a FCF return of 66% This is very close to the value of the territory at 8%
Once the novel coronavirus subsides and business returns to normal, I would expect Valmont to offer decent returns for infrastructure investors
At the time of publication, Will Ashworth does not hold (neither directly nor indirectly) any position in the securities mentioned in this article.
Will Ashworth has written on investing full time since 2008 Publications he has appeared in include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and several others in both US and Canada He particularly enjoys creating model portfolios that stand up to the test of time He lives in Halifax, Nova Scotia At the time of this writing, Will Ashworth does not hold a position in any of the above titles
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