Let's Go Long On Delta - Actually fuck that let's straddle
Note: This is not investment advice. If you follow this advice, you are an idiot. Also you can't sue us if you lose all your money because you're an idiot.
Who doesn't know who Delta is? They're a company with a bunch of airplanes that fly people around the world on a regular basis. From what I understand, they're pretty successful.
And their earnings report is also tomorrow. We're not financial professionals, but if we were then we'd tell you to go long on tomorrow's earnings report, and here's why:
- Airplanes aren't going anywhere
- Higher oil prices
- $10B in profits last year
- "Only" a billion dollars in debt
Airplanes aren't going anywhere
There's a reason why Delta is a big company - because people like airplanes. I mean, just look at Boeing. They're also a big company that has something to do with airplanes and I'm pretty sure they're doing well also. So Delta probably will too. That means the stock will go up.Higher oil prices
You'd think that higher oil prices would mean that the stock would go down, right? Well you'd also probably think that the revelation that Facebook was secretly stealing everyone's data would make their stock go down too. But it didn't.You'd also probably think that Uber losing a billion dollars a year would make their stock plummet too. Nope.
Still, with Trump's crazy tweets and the recent jump in oil prices, it's likely that investors will have an opinion on companies that use lots of oil. Like Delta.
$10B in profits last year
Delta made $10B in profits last year. I think that's pretty good. I also think people will look at that and be like "hmm, that's pretty good."
"Only" a billion dollars in debt
I don't care what any of these idiots say who tell you "debt is good," because it's not. No investor looks at a balance sheet with a shitload of debt and creams their pants. Unless they're the lender.
And I know a billion is a big number, but is it really? Nah. Not for delta.
Conclusion
Delta is a big company that makes airplanes. Or flies airplanes. They have something to do with airplanes, and people use those planes to fly around. But there's crazy shit going on with oil which will hurt their bottom line. So straddle this bitch and hold on for the ride.
This article was written by Gorky The Oracle, otherwise known as @yallapapi. Read more of his brilliance on his blog or stalk him on Instagram.
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