Delta Air Lines [Airlines; United States] dips 0.7% on high volume falling for a fifth consecutive day, a five day fall of 5.9% December 28, 2011
STOCKS
Delta Air Lines (DAL.N) fell 6.0c (or 0.7%) on high volume to close at US$8.12. Compared with the Dow Jones Industrials index, which fell 139.9 points (or 1.1%) on the day, this was a relative price change of 0.4%. The stock fell for a fifth consecutive day on Wednesday, its longest such streak since 03 Oct, 2011.
PRICE VOLUME DYNAMICS
Price Change % 5-day 1-month 1-year DAL -5.91% 9.29% -34.94% Airlines 0.07% -0.33% -33.18% DJIA 0.4% 5.45% 4.97%Volatility: the stock traded between an intraday high of US$8.20 and a nine-day low of US$8.02, suggesting a trading opportunity between peaks and troughs. The average daily volatility of 4.4% places the stock in the 1st quartile in the market meaning it is highly volatile.
Volume: there were 5,651,687 shares worth US$45.9 million traded. The volume was 0.3 times average trading of 6,405,440 shares.
% Discount to high: the last price is at a discount of 38.5% to the 12-month high of US$13.21 a year ago on 05 Jan, 2011.
% Premium to low: the last price is at a premium of 26.7% to the 12-month low of US$6.41.
Volume weighted price (VWP): the price is at a discount of 2.9% to the 1-month volume weighted average price of US$8.363, which may appeal as a value proposition.
Beta: The Beta of this stock is 0.88. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
Standard Deviation (SD): SD is a statistical measure of deviation from the mean. The SD of 3.1% gives it a percentile rank of 77 meaning that 77% of stocks in the global market are less volatile than this stock.
Trailing month: in the last 21 trading sessions there has been a net rise of 4.1%; the stock has advanced 20 times and the biggest one day rise was 5.4% on Dec 15.
OPEN INTEREST TREND AND INTERPRETATION
Same day trend: open interest rose for a second day; the stock fell for a fifth consecutive day. Open interest strengthened 0.1% from 410,108 to 410,403. Combined with the price decrease of 0.7% this suggests the market is weak.
Trailing one week trend: open interest fell for a second week. Open interest crashed 25.2% from 548,418 a week ago while the stock dropped 4.1% from US$8.47 a week ago. Combined with the falling price this suggests the market is strengthening.
Trailing one month trend: open interest crashed 13.3% from 473,595 a month ago while the stock surged 9.3% from US$7.43 a month ago. Combined with the rising price this suggests the market is weakening.
Open interest as % of issued capital: 41,040,300 shares, representing 4.8% of the issued capital.
[ranked 330 out of 1718 stocks in descending order]
Put:call ratio: open interest contracts on exchange traded options included 234,105 put contracts and 176,298 call contracts.
The put:call ratio was 1.3, up 0.1% for the day, up 23.2% in the past week and up 13.1% in the past month.
Top three traded call options [volume of contracts in brackets; 1 contract is 100 shares]
Exercise US$9.0; Expires Mar 17: 42.0c up 2.4% [1131]
Exercise US$8.0; Expires Feb 18: 63.0c down 16.0% [400]
Exercise US$7.50; Expires Jan 21: 81.0c down 4.7% [106]
Top three traded put options [volume of contracts in brackets; 1 contract is 100 shares]
Exercise US$7.50; Expires Jan 21: 19.0c up 11.8% [315]
Exercise US$9.0; Expires Jan 21: US$1.0 up 2.0% [265]
Exercise US$10.0; Expires Mar 17: US$2.09 up 1.0% [156]
Access comprehensive Stock Research on http://www.buysellsignals.com/202129686
PRICE PERFORMANCE RANK IN SECTORS
The stock is in 2 sectors.
The following index and sectors fell setting the trend for its fall of 0.7%:
Dow Jones Industrials index of 30 stocks traded today, which was down 139.9 points or 1.1% to 12,151.4;
The index of Top 5000 stocks by MCap, which was down 62.8 points or 0.8% to 8,040.0;
Airlines sector of 33 stocks and 1 unit traded today, which was down 25.9 points or 0.5% to 5,462.5
Percentile Rank 1-day 1-month 6-months DAL 51 86 53 Airlines 52 43 29 DJIA 37 73 73RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTAL ANALYSIS
The stock meets the following value criteria set by Benjamin Graham:
-"An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 8.6% is 4.47 times the triple-A bond yield of 1.9%.
Other Bullish Signals:
- Price/Sales of 0.22 versus sector average of 0.4 and market average of 1.0. We estimate the shares are trading at a current year Price/Sales of 0.2 and a forward year Price/Sales of 0.2.
- The company is cash rich with Cash to Market Capitalisation at 42.1%.
Bearish Signals:
- Price/Earnings of 11.6 versus sector average of 9.4 and market average of 13.2.
- Total Liabilities/ EBITDA of 12.7 is more than or equal to 5, this compares unfavourably with Joseph Piotroski benchmark of 5.
- Return on Assets of 1.4% versus sector average of 2.8% and market average of 1.8%.
- Return on Capital Employed of 5.1% versus sector average of 7.0% and market average of 11.5%.
The stock has a score of merely 3 out of 9 set by Joseph Piotroski [pass mark >=5 ]:
Positive net income; Positive operating cashflow; Good quality of earnings [operating cashflow exceeds net income].
RELATIVE VALUATION INDICATORS [RVI] TECHNICAL ANALYSIS
Bullish Signals:
- The price surged 9.3% in the last month.
- Compared with the Dow Jones Industrials index which rose 5.4% for the month, this represented a relative price increase of 3.8% for the month.
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) minus the 26-day EMA is positive suggesting a bullish signal.
Bearish Signals:
- The price dropped 4.1% in the last week.
- In the global market of top 5000 stocks by MCap, the stock has a 6-month relative strength of 53 which means it has outperformed 53% of its global peers.
- The price to 50-day EMAP ratio is 0.99. In the past 200 days this ratio has been under 0.99 12 times suggesting downside. The 50-day EMAP has decreased to US$8.182. A decrease is another bearish indicator.
- The price to 200-day MAP ratio is 0.93, a bearish indicator. In the past 200 days this ratio has been under 0.93 127 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of US$8.198 is lower than the 200-day MAP of US$8.717, a bearish indicator. The 200-day MAP has decreased to US$8.717. A decrease is another bearish indicator.
- the stock is oversold according to the Williams % R indicator of -84.2.
SHAREHOLER RETURNS
Trailing one week: the stock fell four times (100% of the time). The volume was 0.5 times average trading of 32,027,200 shares. The value of US$1,000 invested a week ago is US$954 [vs USD1,004 for the Dow Jones Industrials index], for a capital loss of US$46 (or loss of 4.6%).
Trailing one month: the stock fell ten times (48% of the time), rose ten times (48% of the time) and was unchanged once (5% of the time). The volume was 0.8 times average trading of 140,919,680 shares. The value of US$1,000 invested a month ago is US$1,093 [vs USD1,060 for the Dow Jones Industrials index], for a capital gain of US$93 (or rise of 9.3%).
Trailing one year: the value of US$1,000 invested one year ago is US$651 [vs USD1,082 for the Dow Jones Industrials index], for a capital loss of US$349. The total return to shareholders for 1 year is -34.9%.
The present value of US$1000 invested at a previous date is shown below:
PV1000 1-week 1-month 1-year DAL Stock 954 1,093 651 Airlines USD995 USD997 USD671 DJIA USD1,004 USD1,060 USD1,082FINANCIALS
Quarterly Report released on November 26, 2011; year-on-year comparisons with previous corresponding period:
In the quarter to September 30, 2011 total revenue was up 9.7% to US$9.8 billion; net profit growth 51.2% to US$549 million; EPS of 65.0c.
Annual Report for the year ended December 31, 2010 (year-on-year comparisons with previous corresponding period)-
EPS of 70.0 U.S. cents.
Favourable Changes: total liabilities to EBITDA down 64.1% to 12.7. While this compares unfavourably with the Joseph Piotroski benchmark of <5, the trend is favourable; although the Total Liabilities to Operating Cash Flow ratio of 14.9 also compares unfavourably with the Joseph Piotroski benchmark of <4, it had improved by 52.7% from the previous year.; total liabilities to total assets down 1.0% to 1.0; Sales to total assets up 15.6% to 0.7.
Unfavourable Changes: current ratio down 22.0% to 0.6.
Major Common Size Ratios: fixed assets to total assets up from 46.7% to 47.0%; other non-current assets to total assets up from 35.1% to 36.1%; intangibles to total assets up from 33.4% to 33.7%; total current assets to total assets down from 18.2% to 16.9%; cash to total assets down from 10.5% to 6.7%; EBITDA to Sales up from 4.4% to 10.5%; depreciation to sales down from 5.5% to 4.8%; interest expenses to sales down from 3.2% to 3.2%.
MARKET SHARE
Delta Air Lines vs Airlines sector [Airlines sector Total in Brackets]
Net Profit of US$593 million [4.9% of aggregate sector net profit of US$12.2 billion; down from 38.0% in the previous year.]
EBIT of US$1.6 billion [8.0% of aggregate sector EBIT of US$20.2 billion; up from -16.0% in the previous year.]
ISSUED CAPITAL
Based on 846,062,700 issued shares the market capitalisation is US$6.9 billion. It is the world's largest Airlines company by market capitalisation.
ACTIVITIES
It is the world's 2nd largest Airlines company by total revenue.
Delta Air Lines, Inc. (Delta) is an airline that provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company's global route network is centered around the hub system it operate at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, Amsterdam and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. Delta also has codeshare arrangements with Aeromexico, Air France, Alitalia, China Airlines, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air and Royal Air Maroc (and some affiliated carriers operating in conjunction with these airlines). On October 29, 2008, a subsidiary of Delta merged with Northwest Airlines Corporation (Northwest).
TOP MANAGEMENT
The chairman is Daniel A. Carp, the chief financial officer is Hank Halter and the chief executive officer is Richard H. Anderson.
REPORTED SELLING
Reported Selling:
December 22: Delta Air Lines insider sells
Delta Air Lines (DAL.N) insider Bastian Edward H sold 75,000 shares worth approximately US$647,250 on December 20, 2011. The selling price was USD8.63.
November 02: Delta Air Lines insider sells
Delta Air Lines (DAL.N) insider Hirst Richard B sold 24,621 shares worth approximately US$205,093 on November 01, 2011. The selling price was USD8.33.
November 02: Delta Air Lines insider sells
Delta Air Lines (DAL.N) insider Halter Hank sold 34,470 shares worth approximately US$287,135 on November 01, 2011. The selling price was USD8.33.
November 02: Delta Air Lines insider sells
Delta Air Lines (DAL.N) insider Bastian Edward H sold 79,806 shares worth approximately US$664,784 on November 01, 2011. The selling price was USD8.33.
November 02: Delta Air Lines insider sells
Delta Air Lines (DAL.N) insider Campbell Michael H sold 44,148 shares worth approximately US$367,753 on November 01, 2011. The selling price was USD8.33.
BUSINESS NEWS ROUND UP
The last 5 snippets are:
December 22: Delta Air Lines insider gift shares
Delta Air Lines (DAL.N) insider Anderson Richard H gifted 174,952 shares worth approximately US$1.4 million on November 08, 2011.
December 22: Delta Air Lines insider gift shares
Delta Air Lines (DAL.N) insider Anderson Richard H gifted 18,500 shares worth approximately US$150,775 on December 14, 2011.
December 22: Delta Air Lines insider gift shares
Delta Air Lines (DAL.N) insider Anderson Richard H gifted 3,000 shares worth approximately US$25,770 on December 15, 2011.
December 22: Delta Air Lines insider gift shares
Delta Air Lines (DAL.N) insider Anderson Richard H gifted 9,509 shares worth approximately US$75,976.9 on December 13, 2011.
December 20: Delta Launches New York-LaGuardia Fare Sale
[News Story] http://www.nasdaq.com/aspx/companynewsStoryPrint.aspxstoryid=201112200900pr_news_usprx____cl25292 Source: NASDAQ Stock Exchange
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