Diamonds and Dogs

12/13/18

The bottom may be in for GE (GE) according to one analyst. General Electric is up 7% as long term bear turns more constructive. The JP Morgan analyst says GE has a more "balanced risk reward at current levels." The analyst downgraded the stock back in May 2016 when the stock was above $30, questioning the conglomerate's earnings and cash flow outlook. The analyst now sees "upside risk" to the stock of $8 and "downside risk" of $5. So I guess he's not that bullish.

No love for the airlines. Delta Air Lines (DAL) is down 4% following what appeared to be strong guidance. The company expects a $300 million drop in fuel expenses for 2019, they expect to make $5 billion in net income for the fifth straight year and generate $3 to $4 billion in free cash flow. All very impressive numbers for a company with a $36 billion market cap, but investors are focusing on the negatives and think the guidance of 4 to 6% rise in revenues and profit forecast of $6 to $7 per share are short of the consensus estimates.