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All right let's keep I had this stocks that you want to buy on -- day at travel and that this is a travel here Fox -- the markets now.
Are there -- A few stocks and the airline industry in the hotel industries -- that you should be buying right now while I -- I -- somebody got to be experts right now because they've got this game of on stocks to -- -- now let's start.
With David -- -- senior.
Six analysts because in office and a bank and of course -- Kaufman your New York from Sterne -- managing director there and did -- start with you.
And hotels because that is what my focus is today here on fox this is -- obviously.
If you look at a company like Mary.
The stock is the performing well but their business is mostly in the US is that still positive for somebody like the area.
We think it's a positive today because that the US is the strongest region of the world.
Europe is clearly on its back Asia's slowing down a bit.
Well Mary it is doing is growing its global platform in growing its eastern which we think it's great but today we think they're relative exposure to the US it's -- very big positive.
David US exposure when it comes Saddam are so get back to -- -- but I wanna go over to Jeff the talk a little bit about the other side of this and of course the airline sector.
Again one of the sectors that I love the follow you really do like the delta story.
All right now is still think increasing revenues because of the Asia Pacific -- or do you think there's a domestic story here with delta.
Whether there's a bigger story in general and and here's a stock that's doubled and yet no one wants to hold an airline.
This industry is taken thirty years to consolidate but I think they're finally getting it and you've got all the major players controlling capacity you've got the revenue model changing where they're starting to charges for meals early boarding up luggage.
The airlines are all throwing off a lot of free cash flow so this isn't about Pacific revenues -- Latin America as a domestic revenues.
-- about the way they're running the entire franchise starting to focus on our allies see.
Free cash flow the companies are chasing things like investment grade credit rating the planes -- 8085%.
This is an industrywide phenomenon and what we're looking for beyond.
10% capacity here 3% capacity here.
Is for investors to recognize this and -- -- the group so now you've got stocks at four and five times earnings the stock should be at eight and nine times earnings.
Well Jeff I know they just raised -- price targets twenty dollars on delta you gotta buy on the stock but there are other concerns about some of the other names in this space -- -- -- Quickly ask you about the names like jetBlue southwest -- -- what we have seen.
For these names is in particular with sequestration.
Less government worker travel but that's kind of a -- for I guess for the entire sector frankly.
It is that when you think about -- we we had a real winner this year and they've they've got a lot of winner cause you've had fiscal cliff concerns sequestration.
What really drives -- you know these companies as corporate Travelers Cos.
like our company like IBM.
People hiring business travelers and those business travelers paying the 45600 dollar fares to travel it's not you and me taking vacations so.
As long -- corporate profits are reasonably strong we can get through sequester I I kind of view the military sequester.
As when the payroll taxes changed you saw some people change their habits for a month or two and then once the budget suggested.
They resume their normal travel and I think that's what you're gonna see with sequester.
And David that is the same issue that is face unfortunately what the hotel industry as well those government workers they're not just flying overseas are also staying overseas or domestically as well also when you look at the hotel space.
Hasn't been a concern with sequestration and a lack of a government travel over the last some other stuff.
It's been a very big concern but it hasn't played out very strongly so far most the company's reported -- said that their government businesses at most 2%.
It's off a little bit government group is certainly slow it's a bigger impact on the Washington DC market.
But overall we're not seeing a huge impact yet and we're hopeful that we won't -- -- curriculum.
What David love adept -- gentlemen thanks to both -- was I was -- look at specific stocks and of course to sector's overall that are great to talk about.
On a day will be covered the business of traveling on Fox -- gentlemen thanks to both of you appreciate it again most of us until -- -- right now Dennis.
An airline sector as well that is as you can see those names that are Devlin himself less than pretty decent performers over the last month the south on up earnings CK right -- -- that.
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