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This week we are looking at an airline. That’s right, an American airline company and not for our Bear pick either. This company warrants our recommendation through its smart, responsible growth and attention to customer satisfaction. It is not without hesitation that we would choose to pick an airline, but the more you look at their numbers and see the innovative approach towards growth, the more you feel like you are investing in a solid industry leader that is profitable in a very tough environment for airlines. Our Bearish pick is a true American disaster story that investors are looking to make short term money on with no new relevant information other than it's in a rally. That is a very dangerous place to be. |
 JetBlue (JBLU) - Since we first started reviewing stocks, we have always been very careful about the airline industry in general. It’s a tough business where profit margins are tight; fuel costs and economic downturns can bankrupt an airline that looked solid yesterday. That being said, JetBlue stands apart in this industry and has managed to turn profits as its competitors post billion dollar losses. They recently promoted a $599 All-You-Can-Jet pass that allows unlimited travel between Sept. 8 and Oct. 8. Showing they are innovative and not content with their current success. They have great customer communication through Twitter and Facebook and have topped J.D. Power and Associates best customer service 5 years in a row.
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 American International Group (AIG) - AIG has seen a nice rally in its stock price this month up over 150%. The new CEO, Hank Greenberg has said all the right things, painting the long term future of the company in bight colors. The problem is that the company's financials are complicated and there isn't much analyst coverage to make a rational decision. Investors just see a potential rebounding giant but the truth is, they couldn't pay back the TARP funds even if they sold every asset the company owns. Perhaps investors didn't notice the 1 to 20 reverse stock split.
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