Perhaps more surprising is Buffett's second - best pick over the past year, as it has recently been known more for controversy than outperformance:
United Airlines stock, up almost 44 % since the investor bought it in the third quarter of 2016.
Gerstner said he thinks
United Airlines stock is worth double or triple its current share price of about $ 75, or even more, with his target price at as much as $ 235 a share.
Not exact matches
Other
airline stocks were also lower, with Spirit down 5 percent, Delta shedding 2 percent and
United falling 3 percent.
United Airlines» plan to grow aggressively over the next several years was aimed at getting investors even more jazzed about its
stock, which was already rallying more than its peers» this year.
United Airlines (ual)
stock fell sharply last April after the violent forcible ejection of a passenger named David Dao.
Citing Warren Buffett's statements from this weekend's Berkshire Hathaway annual meeting, where the Oracle of Omaha also explained his bet on
airline stocks including
United.
Airline stocks like Southwest, JetBlue and American
Airlines were broadly weaker Wednesday, dragged down after
United discussed its growth plans after its quarterly earnings report Tuesday evening, a report that did in fact beat estimates.
CNBC's Phil LeBeau reports the latest surrounding the dragged passenger incident at
United Airlines and how it is impacting the
stock.
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which
United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial
airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into
United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by
United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of
United Technologies» common
stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which
United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which
United Technologies and Rockwell Collins operate; (17) the ability of
United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of
United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to
United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of
United Technologies» and / or Rockwell Collins» common
stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and
United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the
United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of
United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
While the simultaneous technical breakdowns of the New York
Stock Exchange,
United Airlines and Wall Street Journal on Wednesday weren't connected, it sparked concerns of the damage an all - out cybercrime blackout could cause if such a glitch reached our power systems.
Debating
airline stocks amid controversy surrounding
United Airlines with Jamie Baker of JPMorgan, with the bull position, and David Dietze of Point View Wealth Management, with the bear position.
Airline stocks sink after
United Continental's growth plans raised concern it could drive down fares.
These are the
stocks posting the largest moves after the bell on Monday, including: American
Airlines, Delta Air Lines,
United Airlines and more.
Warren Buffett has recently defended several of the controversial
stocks he owns, including Wells Fargo and
United Airlines.
Shares of companies in the industry, including Southwest,
United Continental and American
Airlines fell more than 9 %, while Delta saw its
stock tumble by over 5 %.
United Continental gained 4.8 per cent and lifted other
airline stocks after reporting a better - than - expected quarterly profit.
Stock losses on Wednesday were driven by the news of
United Airlines» plans to go head - to - head with low - cost airliners by selling, and most major airliners fell in tandem.
According to fourth - quarter filings, Berkshire owns a little over $ 10 billion in
stock in the top four carriers — American, Delta Air Lines,
United Continental and Southwest
Airlines — with the largest position, by number of shares held, being Delta.
The deregulation in the
United States over the past decade has not worked well in other areas, either: in the
stock market it brought on a rash of scandals; in the
airlines it resulted in poorer service, higher prices and the end of service to many smaller cities.
Tags: 9 - 11 Attack, American
Airlines, AMR, BAC, Bank of America, Dow Jones Industrial Average, Financial Transactions, Huge Profits, Index Futures, Index Options, Insider Trading, Investor Psychology, Morgan Stanley, MS, October 19th 1987, Panic, Portfolio Insurance, Predicting
Stock Market Crashes, Put Option, Put - to - Call, Raytheon, RTN,
Stock Market Crash,
Stock Option, UAL,
United Airlines,
United Continental
Airlines
American
Airlines, Delta, and
United routinely run promotions to encourage frequent flyer program members to
stock up on miles.
Filed Under: Investing Tagged With: Arcelormittal, Nucor, Nucor Corporation, Short, Steel, Steel
Stocks, Target Price,
United States Steel Corp.,
United States Steel Corporation Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer,
airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
The same can be done with individual
stocks in each sector, too, such as ExxonMobil (NYSE: XOM), Southwest
Airlines (NYSE: LUV), Chevron (NYSE: CVX),
United Continental (NYSE: UAL), and many others.
American
Airlines, Delta, and
United routinely run promotions to encourage frequent flyer program members to
stock up on miles.
For example, before heading to the online Pottery Barn Kids website to order personalized
stockings for your little ones to hang on the fireplace, to earn
airline miles, you must first head to a site like
United MileagePlus Shopping and log in with your frequent - flyer information.
While Singapore
Airlines is part of the Star Alliance if you fly them instead of
United you will get NO PQD unless your travel agent miraculously finds a way to ticket a Singapore
Airlines flight on
United Ticket
Stock.
Rivals
United Airlines and Continental
Airlines combined their operations through a $ 3 billion merger in 2010, two years after Delta Air Lines acquired Northwest
Airlines in a $ 3.63 billion
stock swap.
This is especially true in the
airline business, where
United Airlines»
stock tumbled after video surfaced showing a passenger being beaten up and dragged off a plane by airport officials.