The operating environment in the hotels and lodging sector has continued to deteriorate in the last few quarters, and we expect hotel industry operating metrics to remain stretched in the near term. As the recession continues, both business and leisure travelers are cutting back on their trips. However, with some early signs of economic recovery, we believe that hotel occupancy will improve in the fourth quarter of 2009 and in 2010. Though occupancy levels are expected to pick up, pricing pressures will continue as hotels will carry on offering heavily discounted rates to draw in travelers. As such, profits will remain cagey in this environment. In evaluating hotel companies such as Starwood Hotels and Resorts Worldwide Inc. (HOT) and Marriott International Inc. (MAR) during this down cycle, we will be paying close attention to changes in average daily room rates as an indication of how ...

If You Thought the Housing Meltdown Was Bad… Doug Hornig, Senior Editor, (Casey Research):

…wait until you see what’s in the cards for commercial real estate.

That’s right, the next train wreck will be in commercial real estate. Couldn’t be worse than last year’s residential market crash? That remains to be seen. But it’s coming soon, probably as early as the second quarter of next year, and there’s nothing that can prevent it. The government will intervene, trying desperately to delay the day of reckoning, and may even succeed. For a while. But make no mistake about it, that train is going off the tracks no matter what.

Every part of the sector – from multifamily apartment buildings to retail shopping centers, suburban office buildings, industrial facilities, and hotels – has accumulated a huge amount of defaulted or nonperforming paper. It’s an impossible, swaying structure that cannot long stand.

Just ask Andy Miller.

Andy

...

UAL Corporation (UAUA), the parent company of United Airlines, reported a third quarter loss of 43 cents per share, better than the Zacks Consensus Estimate of a loss of 93 cents. This compares favorably with the loss of $1.99 per share reported in the year-ago quarter. Results were heavily influenced by a sharp drop in fuel prices and more aggressive management of other costs. Revenues fell 20.3% year-over-year to $4.4 billion as a result of a 14.7% year-over-year decline in mainline revenue passenger miles (RPM) and a 17.1% drop in yield. The revenues were also disproportionately hurt by the decline in premium and business travel. UAL was able to offset much of this by a $1.7 billion decrease in operating expenses, about 80% of which was related to fuel. For the reported quarter, mainline load factor increased 260 basis points to 85.8%, and passenger revenue per ...

Standard & Poor's Ratings Services has lowered its ratings on Southwest Airlines Co. (LUV), lowering the debt ratings to 'BBB' from 'BBB+’ and placing it with negative implications. However, Southwest has retained its investment grade rating. The downgrade reflects lower operating cash flow caused by record high fuel prices, low global demand for air travel and weak prices. The travel downturn has eroded the airline's flow of cash at a time when the airline faces substantial fixed obligations and declining cash balances. Southwest's cash balance fell to $902 million in the third quarter from $1.4 billion at the end of 2008. Recently, Southwest borrowed $124 million under a new term loan agreement secured by five Boeing 737-700 aircrafts. It also replaced its previous $600 million unsecured revolving credit facility with a new $600 million unsecured revolving credit facility that will expire in Oct. 2012. The rating ...

Southwest Airlines (LUV) reported an operating income of 3 cents per share, ahead of the Zacks Consensus Estimate of 2 cents per share. This was lower than the profit of 9 cents per share in the prior-year quarter. Passenger revenues decreased 7.8% to $2.6 billion from $2.8 billion in the prior-year period. Cargo & Freight revenue decreased 24.3% y-o-y to $28.0 million, primarily due to fewer shipments as a result of the ongoing worldwide recession. Other revenue increased 1.1% y-o-y to $88.0 million. Fall-off in business travel because of the recession negatively affected the revenues. Total operating expenses decreased 5.7% year-over-year, mainly due to lower energy prices. The quarter’s operating expenses included $27 million of early out program launched during the previous quarter. Southwest’s revenue passenger miles (RPMs) increased 4.7% y-o-y to 19.7 billion miles from 18.8 billion miles in the prior-year quarter. Capacity (available ...

For Immediate Release

Chicago, IL – October 9, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Southwest Airlines (LUV), Frontier Airlines Holdings (FRNT), Republic Airways Holdings (RJET), Continental Airlines (CAL) and United Airlines (UAUA).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Southwest September Traffic Spikes

Southwest Airlines (LUV) announced its preliminary mainline traffic results for September. The company reported an 8.8% surge in traffic to 5.8 billion revenue passenger miles from 5.3 billion revenue passenger miles a year ago.

Load factor, or the percentage of available

...

Southwest Airlines (LUV) yesterday announced discounted fares for winter travel. The discounts were offered in order to increase travel to make up for the lost revenue due to the recession.   Southwest has been hit hard by slowing demand due to the recession and volatile fuel prices. As a part of its cost-cutting initiatives, the company has cut its capacity along with downsizing employees.   The air carrier is scrambling to fill its seats this winter by offering big fare discounts. The discounted fares will be offered on travel any day except Fridays and Sundays from Oct. 13 through Feb. 11. The company also said that travel to some destinations would start at $59 each way however seats for such offer are limited.   However, the sale prices are higher than they were for other recent Southwest promotions and up to 50% higher than during a big ...

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Wednesday September 16, 2009

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Zcom Networks, Inc. (PINKSHEETS: ZCNW) announced today that “Talk Money TV’s” recent show featured a one hour economic analysis with Dr. Alex Parsinia as the guest. The highlight of this show was an in-depth analysis of the factors which contributed to our recent economic downturn, an identification of government monetary and fiscal policies in place designed for turnaround, and future forecasting of the economic condition. “We are committed to making ‘Talk Money TV’ a premier financial, business and economic

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Concur Technologies Inc. (CNQR) reported a 13% year-over-year jump in revenues for its fiscal third quarter -- $62.2 million on 14% growth in subscription revenues compared to the year-ago quarter. Net income for the quarter was $7.2 million or 14 cents per share.

Concur released Concur® Mobile for general availability. This application is meant for business travelers and extends the power of Concur® Travel & Expense by allowing mobile workers using their phones to easily change itineraries.

Concur also announced the acquisition of Etap-On-Line, a European provider of business travel and expense management solutions based in Paris, France. Concur expects the acquisition, which closed on Aug 1, 2009, to be accretive to fiscal 2010 earnings.

Total cash and equivalents as of June 30, 2009 were $243 million while long-term debt was $491,000 and shareholder’s equity was $505 million. Long-term debt was negligible and cash balance declined slightly compared to that in the beginning

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Monday August 3, 2009

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Netflix, Inc. (Nasdaq: NFLX), the world’s largest online movie rental service, today announced an agreement with Disney-ABC Television Group that will make several of ABC’s most popular TV series available to be streamed instantly from Netflix.

SST Communications, a developer of RF front-end components and modules for a wide range of wireless applications and a subsidiary of SST (Silicon Storage Technology, Inc.) (Nasdaq: SSTI), a leader in flash memory technology, today announced that it has doubled the output power of its 2.4 GHz WLAN power amplifier (PA) offering with the new SST12CP11. Housed in a compact 3 x 3mm QFN package, the three-stage device achieves 34

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