Analysis: Delta's refinery bid looks better on second glance

Delta Air Lines' expected bid to buy a Pennsylvania oil refinery has had people in both industries joking that a company from the money-losing airline sector would be right at home in the money-losing ...

ByRobinson Roacho:While the S&P 500 and the DJIA have rallied to all-time high levels, aerospace-related stocks have outpaced the general markets. Within the sector, regional Airlines' PPS have seen substantial capital appreciation this year compared to their big sisters.

By Vatalyst: Much of the business in America is based upon transportation and logistics.

By Adam Levine-Weinberg:On April 30, Delta Air Lines (DAL) bought a 185,000 barrel per day (bpd) oil refinery in Trainer, Pa. from Conoco Phillips (COP). Delta's goal for this transaction is to mitigate risk stemming from the "crack spread" (the price difference between crude oil and jet fuel) and thus generate cost savings.

By David Trainer:After S&P's recent upgrade to its outlook on Delta Airlines (DAL), I cannot help but to wonder how they do their analysis. My analysis of Delta's financial position shows that the company's financial position is getting worse not better.

By Helix Investment Management:In general, our investment philosophy is one that bypasses cyclical industries, such as energy or financials. We prefer to invest in companies with clear secular trends that go beyond economic cycles. One industry we have long avoided is airlines. Few sectors as a whole define the idea of cyclicality. This is an industry where competition for customers is fierce. It is capital-intensive. And the industry is at the mercy of the commodity markets.