Today we are watching…
1. Fly Leasing (#fly-adr)
It’s no secret that markets have gone haywire and airlines have gotten crushed, but what about companies leasing planes to these airlines? If an airline goes under, firms like Fly Leasing repossess the planes. It’s typical to find a new lessee quite quickly, but planes sometimes lose their value during locked lease agreements and need marking down on the books. These are stocks that trade with fear. There’s very little public information swirling around about them, and Warren Buffett hates them (sometimes that all it takes). However, Fly Leasing just beat earnings with some smooth leasebacks, so maybe sentiment shift for the entire industry? Big maybe!
2. Uber Technologies (#uber)
In the space of a single day, the leadership atop Uber laid off 14% of the company’s workforce while also telling investors things were on the up. The firm revealed losses of nearly three billion dollars in yesterday’s earnings report, but it claims to have the cash to weather several months of zero revenue. It’s all about Uber Eats, and favorable consumer transport choices will be required when lockdown unlocks, as well as some easing in the regulatory pushback against the company’s gig economy practices. If the pressure doesn’t subside, this stock leading the bull run won’t lead the next bull run.