Diamonds and Dogs




4/23/18
Alaska Air (ALK) flying higher following better than expected earnings. Alaska beat by 2 cents as revenue rose 4.7% to $1.83 billion. The really good news was Alaska will and expects capacity growth to be cut. Lower capacity growth plans means reduced competition and higher unit revenue among carriers. The analyst at Cowen expects the shares of Alaska Air Group to outperform the peer group with better unit revenue. Alaska will retire the Virgin America brand this week as it migrates to a single passenger service system with possible revenue synergies down the road due to the merger.
An easing of US and Russia tensions not good for Alcoa (AA). Alcoa is down 13%, its worst one day sell off in nine years as the US Government signaled it may give the world's second largest Aluminum producer, Rusal, a break on aluminum sanctions. The problem with a fickle government without a real cohesive strategy is whippy returns and uncertainty for management to get a cohesive idea for market demand and supply.