Analysis ICO Analysis: Wolk Published 11 months ago on September 11, 2017 By P. H. Madore The Money Makers Club now has 6 of 15 available seats. Learn more here! Data rules everything around us, now let’s find the ICOs that’ll get the money. The mantra of technology: disrupt and dis-intermediate. Everyone knows that Google or Facebook didn’t get where they are by selling physical products. Instead, they’ve monetized the data of millions of people, and so the circle won’t be complete until the advertisers buying that data don’t have to go through Facebook or Google for it anymore. This is an area where the blockchain undoubtedly will shift things sooner than later, and we’ve seen several efforts in the direction of direct consumer-producer marketing relations via the blockchain. One of the more interesting plays in this space is BitClave, which focuses mainly on search, but has the same concept as today’s subject, Wolk (“cloud” in Dutch). That concept is that users should be compensated for the data they share, and that they would more willingly share accurate data to marketers if there were any actual benefit. BitClave is great for advertisers because they only pay when sales are actually made, a new approach to display advertising that simply doesn’t work in other models where decentralization hasn’t reduced basic operating costs significantly enough. In Wolk, the idea is similar, but it focuses on the actual buyers and sellers of the data. They want to allow buyers and sellers to talk to each other about what actually takes place, without compromising user privacy (the beauty of cryptography.) Publishers don’t have to be identified, but they can raise the price of their advertisements by participating and earning Wolk tokens for submitting user, usage, behavior, and response data. Advertisers, the primary target market, will have access to much more useful data, while consumers can receive better-tailored advertisements. What we’re talking about here is getting past the thing where Google keeps showing you adverts for your most recent purchase, as if you hadn’t already made your decision. That’s bot behavior, and Wolk is working on a better algorithm. Wolk will be offering more than just the Wolk Data Exchange API in the future. The Data Exchange Application Programming Interface is the primary subject here because it is the first use case. Presumably other APIs will be developed for finer-tuned usage of the data in question. The WOLK token is required to use said APIs, in the same way that dozens or hundreds of services provide APIs for subscription fees. The people using the tokens to get information from the API will be the advertisers. The people earning tokens from the API will be the publishers. Consumers and readers may or may not benefit from better-targeted advertising, but the only way their data is actually dis-intermediated here is if 1) publishers share revenue with them or 2) they buy WOLK tokens. We don’t like this so much, since it leaves the vulnerability for someone to just complete the next step (cut out the publisher), but we reckon it can still be mightily profitable if at least one big advertiser and one big publisher were to make use of it. That’s always the real means test for a blockchain idea, no matter how great, or even how solid the product that derives from it, it’s going to have to get some sponsors, as it were, in the form of real-world users with recognizable names. The Wolk Data Exchange One thing we definitely like a lot about Wolk is that they come to market with a fully functioning API and use case in hand. This will make the usually slow-going road to adoption quite a bit faster. One thing that is not mentioned often enough is that users are actually secondary to developer-users. When programmers and developers get interested in open platforms that they can use, they tend to integrate them into existing projects, sometimes when they don’t even need to be there. We’ve seen this with more than one blockchain project. We’re not saying that Wolk can work without blockchain, that wouldn’t make any sense. What we’re saying is that Wolk’s API could have a blockchain-like effect on the developer mindset and lead to quick integration into existing platforms, like WordPress plugins or something, which makes adoption a landslide instead of an uphill climb. In the old days, a marketer could get a phone book and look up George Washington and kno w that he lived at 2305 Main St and that his phone number is 202 – 555 – 9876. In the current digital ecosystem, it is not possible to do that easily, because the phone book has been replaced with centralized services of Google and Facebook whose ID of 0000994B – 4C70 – 4710 – 85D7 – D1D022C7000E cannot be mapped to such attributes. The API documentation provides a clearer picture of how buyers will actually make use of the data, as well as how publishers will provide it. At present, from the highest point of view, it is very similar to Facebook or Google Ads selection of demographics. Data is broken down into the various categories that it actually falls into: e-mail address, phone number, name, and more. We’re not here to write a guide on using the thing, but must confess we’re interested in using it. The first part of the process for an advertiser is to get the information about the data they want to purchase, and the second is to make a bid. Like in any data market, others can outbid, or demand can raise the price. Open APIs, especially those powered with cryptocurrencies, represent a powerful digital force that many people know nothing about. What we are describing right now is something that Google, Microsoft, or any other firm with millions of advertising clients to serve could easily make use of – if it is more valuable than or equal in value to what they already have. It probably won’t be firms like that who pick up on it first, however. We reckon on the publisher side, tech-focused publications will be the first to jump, and on the advertiser side, some company that bills itself as privacy-respecting or the like (such as DuckDuckGo) might investigate ways to profit from the network. There are some hazards in the design. By allowing publishers to remain anonymous, for instance, you lose the guarantee that “publishers” are not actually data thieves re-marketing stolen data. Or you run the risk of being held responsible if publishers did not legally collect that data in the first place. However, we believe that these are the types of problems technology is best at solving. Publisher Interest Likely Strong There has been a massive decline in publisher earnings across the web as Google and a few others have centralized advertising and cut rates significantly. The disruption of the newspaper industry is followed by the disruption of the blogging and web content industries. We believe that publishers will be attracted to the notion of earning extra money from the data they’re already capturing. We believe that WOLK tokens are likely to hold significant value if the previous belief matches reality. One (albeit minor) drawback we can see is that publishers will have to do work to take part. This means they will have to learn and decide. As stated earlier, developer interest is likely to be strong since the API is complete and usable, so easier means for publishers to integrate with Wolk will likely present themselves. However, we should note that with the Basic Attention Token/Brave Browser Payments scheme, publishers are not required to do anything at all – once they have earned $100 through the platform (knowingly or not), Brave reaches out and truly onboards them. Wolk Inc. Already Has Data Ready To Sell As of June 2017, Wolk has on boarded over 400MM mobile deviceIDs with email, age and gender data and over 3B data points with app usage information. Typically, when suppliers provide datasets, the onboarding of data consists of taking files of around 1MM – 10MM lines and bringing them into “device”, “email” and/or “phone” map- pings stored in decentralized backend storage. For high volume throughput and low latency API responses, our current implementation uses Google Cloud’s BigTable [HBase] as a cache into this decentralized backend storage. WOLK Token The WOLK token has a diminishing supply because part of the tokens are destroyed in each transaction. Additionally, each WOLK token has a 15% Ethereum reserve, in similar fashion to the design precepts of the Bancor Protocol. The most interesting part about the WOLK token is that the company has committed to keeping 15% of Ethereum proceeds in reserve in order to maintain liquidity of WOLK tokens. To wit: this casino has a built-in cashier. It seems the way they intend to do this is to sell such tokens that are redeemed in order to replenish the reserve. Transferability The Wolk Tokens are being offered in reliance upon exemptions from registration under the Securities Act of 1933 (“ Securities Act ”). Therefore, unless the WOLK are used in commercial transactions using the WOLK protocols, WOLK may not be transferred within the United States or to a “U.S. person” unless such transfer is made to an “accredited investor,” in compliance with applicable securities laws, and may only be transferred in a transaction outside the United States to no n – U.S. persons, unless and until Wolk reasonably determines and notifies holders that the WOLK Tokens are not securities and freely tradeable. Any transfer made in violation of these provisions will be void. This is an onerous, and drawback of a clause right here. It’s unclear if Wolk intends to inspect transactions for IP provenance or enable other blacklisting procedures to keep everyday trader from profiting on the token. While they’ve placed this clause in the document, their blacklisting disclosure is a bit unusual: they’re only allowing American Eth holders to participate! Anyone holding Ethereum in an Ethereum wallet in the US. Wolk reserves the right to restrict purchases to residents of certain US states, and currently residents of New York are not permitted to purchase WOLK. Non-US participants may purchase WOLK subject to Wolk’s determination that the purchase complies with applicable law in their local jurisdictions. Note that Wolk Inc. may be required to use Know Your Customer (“KYC”) practices for your participation and may use third party services for these practices. Wolk is allowing for a small number of USD-based purchases, which will be finalized at the end of the Token Generation Event. WOLK Team In the case of WOLK, the proof is already in the pudding. They have a working product that investors should verify before investing. Since they’ve delivered a product, we’re just going to lower the score a tiny bit since none of the people or firms on the Team page ring a bell. That’s only important from a hyper perspective, and we believe this one can succeed with or without hype, because it provides real value if it makes it off the launchpad. Data storage is being conducted through an implementation of Swarm technology. They list as an advisor a David Gentzel, “co-founder and vice president of product development of SocialMedia.com.” He has experience from the early days of social media, an early success being a project for MySpace. We hope that his primary purpose is to evangelize the technology to higher-level publishing and marketing executives whose ear he might have. Verdict We think the projects which enable true direct-to-consumer marketing will ultimately turn out more money than those that repair the existing advertising model, but this does not detract from the positivity we develop in looking over Wolk. This means a disclosure is in order: the author is likely to purchase during the ICO period of Wolk. We feel that Wolk will be vulnerable in the long-term to efforts which fully encompass the market, but as a bare-bones relay point for valuable user information, we think they will do more than survive. Much more. The Ethereum reserve part is a bit worrisome, since we can see problems with exchanges and token holders arising there, but we don’t think they will be significant enough. We note that the smart contract is listed as verified on Etherscan.io. Risk Wolk provides their own list of risks at the end of their whitepaper, and we agree that most of them are real risks. But the one that we think (ironically, their chief concern as well) will actually drag the cloud down is the risk of not having enough data to sell. As stated, it’s crucial that publishers actually do take part, or else there’s nothing to buy and thus no demand for the token. -1.5 The standard security risks apply here. We’re concerned that the better something looks, the harder hackers will try to make it eat crow. -0.25 Team still unproven, despite supposedly long careers. Not concerned, given the product, but must be accounted for. -0.25 Growth Potential The real money will never flow down to the consumers. Business doesn’t work that way. While we think that wider adoption will be had by platforms which integrate consumers into the payment cycle, we also think that Wolk and such platforms will have to learn to co-exist in the 21st century internet. We see massive potential for real money to be moving around this system, and significant demand for the up-to 200 million tokens. +3 Speaking of the tokens, destruction of tokens during usage is a great way to increase their value. If the system works as designed, then the formula for an ICO investor to profit is pretty simple: the longer you wait to sell to someone (an “accredited investor or exchange”) who needs the token, the more it will be worth. This means that sell-offs should probably be timed with usage rates of the Wolk platform. Wolk, unfortunately, has no obligation to be overly transparent about what other users are doing on the platform, but publishers may find a market in providing their own sales data to interested parties. +3 Wolk, Inc. has already demonstrated that they are capable and have even amassed data to sell through the platform. We feel strongly that they are properly incentivized and hopefully the 15% reserve, while potentially problematic, is evidence that they are serious in their intent. +2 Disposition Have to go with a 6 on Wolk. Maybe not the highlander of advertising plays, but probably a moneymaker. Investment Details Don’t let the fear of missing out get to you. Have a look at their own risk assessments, or even the whole whitepaper, before doing anything. It’s not too dense. You can start buying at a scaled discount rate today. In addition to Ethereum, they’re offering bank transfer purchases, with an in-kind discount tier rate: Be safe out there. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... P. H. Madore 5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link Follow @HackedCom Feedback or Requests? Related Topics:advertisingBasic Attention TokenWolk Up Next Daily Analysis: Stocks Jump as North Korea Fears Subside and Irma Weakens Don't Miss Cryptocurrency Analysis: Coins Stabilize But China Doubts Persist You may like Trade Recommendation: Basic Attention Token Coinbase Makes No Promises But Crypto Coins Continue to Float Coinbase Announcement Sends Five Cryptocurrencies Into Double-Digit Growth Trade Recommendation: Basic Attention Token 3 Comments 3 Comments embersburnbrightly September 11, 2017 at 10:15 pm Very interesting concept; and at the risk of repeating myself, thank you again for your wonderfully in-depth reviews. However, I now have a bit of a parody going on in my head, which is Aerosmith belting out, “Wolk this waaaayy!” (“Walk This Way.”) But hey, that would be a great advertising angle if they could get Aerosmith on board for it. 🙂 Log in to Reply cryptonoob September 12, 2017 at 10:55 am I calculate a hefty 56.625 M$ as the ICO sales cap in case all the tokens are purchased and minted (unpurchased tokens won’t be minted FYI) That’s pretty expensive but there is room for growth. Let’s just hope that not all of the tokens are sold on this one, i’d be comfortable with a quarter or half of that cap. EDIT: All the tokens with 15% discount seem to be sold as there is more than 12,7M$ commited already. Interestingly, when you look at the address of the contract, you can’t see this 12,7M$ amount and the last transactions are from 12 days ago , far before the presales starting date. Something is wrong here. Log in to Reply kamgol September 12, 2017 at 11:35 pm How does it compare to Datum Ico datum.network? Log in to Reply You must be logged in to post a comment Login Leave a Reply Cancel replyYou must be logged in to post a comment. Analysis Crypto Update: Lisk’s Bearishness Hides True Trend Published 43 mins ago on August 15, 2018 By Kiril Nikolaev The Money Makers Club now has 6 of 15 available seats. Learn more here! Many avid cryptocurrency traders have taken Lisk off of their watchlist (LSK/BTC) and for good reason. The pair has plummeted like a shooting star crashing down the surface of the planet. From the high of 0.003398 on February 10, 2018, LSK/BTC is down below 0.00043 today. The pair’s fall wiped out almost 90% of its value. Nevertheless, long-term investors shouldn’t be worried. As bearish as Lisk looks, we are convinced that it is not yet ready to go the way of the dinosaurs. On the contrary, LSK/BTC is flashing signals that it is about to come back to life soon. If it does, it will confirm our assumption that Lisk is currently range trading. Lisk is Locked in a Wide Trading Range If you’re an experienced technical analyst, then one of the things that you probably do is map out key areas of support and resistance. This helps you determine the overall trend of the market. It is then easy to come up with a strategy once you establish the trend. We performed these steps in our analysis of Lisk and the charts showed us that the pair is range trading when looking at it from a long-term perspective. Weekly chart of LSK/BTC LSK/BTC is locked in a wide trading range. The bottom of the range is support of 0.0004, the middle is 0.0016, and the top end is 0.0032. The market has been trading within this range since May 2017. The “smart money” investors buy the bottom of the range. You can see this as volume spikes whenever the pair drops to this level. This tells us that they accumulated enough positions to influence market movement. As soon as they are ready, they spark a rally and constrict supply to inflate market price. Then, they wait for the top to start distributing positions. Volume differences in the daily chart of LSK/BTC The “smart money” investors are very likely to repeat the process once LSK/BTC hits the bottom end of the range. We see that process developing right now. Breakout from a Falling Wedge Lisk is fond of falling wedges. Between June and December 2017, the pair broke out from three falling wedges as it range traded between 0.0004 and 0.0016. This appears to be the pattern used by “smart money” investors to distribute positions and keep prices from climbing further. Fast-forward to today and we see that LSK/BTC has created another falling wedge on the daily chart. Daily chart of LSK/BTC What’s interesting is that the apex of the falling wedges always formed around the bottom end of the range at 0.0004. This usually sets up the market for a bounce and a breakout that sends the pair to the midpoint of the range. We believe that the market is repeating the same process today. LSK/BTC is in extreme oversold territory on the daily RSI. On top of that, the stochastics are respecting support of 3.08. This support has never been breached. The market may linger on this level but it always bounces. This tells us LSK/BTC can only get stronger from this point. Bottom Line LSK/BTC may have lost over 90% of its value from the high of 0.003398, making the market look ultra bearish to many investors. However, technical analysis from a long-term perspective show that the pair is currently range trading. Breakout from the current falling wedge should confirm this assumption. Featured image courtesy of Shutterstock. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Kiril Nikolaev 3.6 stars on average, based on 223 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances. Follow @HackedCom Feedback or Requests? Continue Reading Analysis Crypto Update: Market Surges 10% but Downtrend Still Intact Published 2 hours ago on August 15, 2018 By Mate Cser The Money Makers Club now has 6 of 15 available seats. Learn more here! Following two days of almost constant selling, the cryptocurrency segment experienced an oversold rally, with the major coins recovering a small part of their recent losses. The technical setup is little changed so far, with the steep short-term trendlines being intact in most cases, and with the key resistance levels towering ahead of the top altcoins. That said, as the longer-term charts have become clearly oversold, and as the selloff accelerated with signs of forced liquidations across the board, such as huge volumes and very high correlations between the majors, a durable bottom could already be forming in the segment. The next few days will be crucial in deciding that, as a successful test of the lows, and the formation of a relatively strong leadership could set up a broader short-term trend change. For now, our trend model remains on a sell signal in case of the top coins, with Bitcoin being the closest to a reversal from a technical perspective. Ethereum bounced off the $260 level, Ripple found support near $0.26, while BTC recovered above $6275 but been stopped by the $6500 resistance, failing to trigger an upgrade in the trend model. ETH/USD, 4-Hour Chart Analysis Ethereum surged higher after the US close yesterday and although it failed to add to those gains in early trading today, the coin is holding up just above the $275-$280 zone, but the steep downtrend is clearly in place. ETH has been very weak for more than a month, and especially since breaking below the $400 level last week, and more signs of strength would be needed for a trend change. Key resistance is ahead at $300, while further support below $260 is found at $235. BTC/USD, 4-Hour Chart Analysis On a positive note, Bitcoin joined the oversold rally after holding up well above the $6000 level and the key long-term zone near $5850. The coin also moved above declining trendline, but for now, the pattern of lower lows and lower highs is intact and the coin remains on a short-term sell signal. BTC is clearly in the strongest technical position among the majors, and it could be the leader in a recovery, should it manage to build a bottom in the coming weeks. Resistance above $6500 is ahead at $6750, and $7000, while further support is found between $5000 and $5100. Correlations Remain High as Bearish Conditions Persist XRP/USDT, 4-Hour Chart Analysis While Ripple managed to hold up above its spike low below the strong $0.26 level and the bounce took it as high as $0.30, the steep downtrend remains intact and bulls would need further confirmation before entering new positions here. The coin is still deeply oversold from a longer-term perspective, and we expect a more durable bottom to form soon. Further resistance is ahead at $0.32, while support below $0.26 is found near $0.23. LTC/USD, 4-Hour Chart Analysis Looking at the bearish leaders, most of the coins are in very similar setups, as correlations are still very high, and Litecoin and Monero are still slightly more promising than the likes of Dash, Neo, and IOTA, which remain very weak from a technical standpoint. LTC is trading near its recent swing low at $56 and should the coin manage to hold above that durably, a short-term bottom could form, which would be a positive sign for the segment. Featured image from Shutterstock Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Mate Cser 4.6 stars on average, based on 317 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market. Follow @HackedCom Feedback or Requests? Continue Reading Analysis The Air Transportation Market is Growing. Where to Invest? Published 21 hours ago on August 14, 2018 By Dmitriy Gurkovskiy The Money Makers Club now has 6 of 15 available seats. Learn more here! By Dmitriy Gurkovskiy, Chief Analyst at RoboMarkets Today, practically every person who has internet access knows what Amazon and Alibaba are. These are the world’s largest internet-companies who, for the sale of their products, also use famous platforms like AliExpress and eBay. Their total revenue constantly has been increasing year after year. And as long as these companies are oriented toward international markets, 95% of the goods they sell are delivered by air. Here we could pay attention to the aircraft manufacturers, as the air transportation growth rate will lead to increased demand for new aircraft. Boeing has conducted research according to which the demand for pilots, aircraft technicians and flight attendants in the world is growing, and the biggest activity is expected in the Asia-Pacific Region and in North America. This week, the news feeds have been peppered with headlines on the current shortage of pilots in airline companies, and this demand will be hard to satisfy in the nearest 10 years. Last week, Ryanair pilots went on strike demanding a salary raise and improved improved working conditions. Consequently, investors have started showing interest in airline companies. Also, rumor has it that Warren Buffett is going to invest in one such company (or in several), but it has not yet been indicated which one exactly. According to some reports, it may be Southwest Airlines Co. (NYSE: LUV). Southwest Airlines Co. is an American low-cost airline founded in 1971. It is the biggest low-cost carrier in the United States and in the world by the number of transported passengers. As of December 2017, there were 706 Boeing 737 aircraft in the company. By its financial performance, the company looks attractive for long-term investments. For example, profitability has reached 16.90%. The Short Float ratio is very low – only 1.82% and the debt to equity ratio is 0.48. Based only on the rumors, Southwest Airlines stocks have left the consolidation range between the levels of $50.00 and $53.50, having broken out the 200-day moving average and indicating a possible formation of an ascending trend on D1. The closest resistance levels are at $62 and $67. On W1, a stable uptrend is visible and the broken out levels are becoming a support for underlying price. It is unclear precisely which company Warren Buffett will direct his attention to, so we can analyze the financial standing of other airline companies, which can become potentially interesting investments. Delta Air Lines (NYSE: DAL) is one of the largest airlines in the world. Its destinations network includes countries in Asia, Europe, North, South America and the Caribbean region. As of January 2018, Delta Air Lines had 853 aircraft. The financial performance of this company over the last 4 years shows a drop in income. Profitability is 7.7%, the debt to equity ratio is 0.67 and the Short Float ratio is 2.65%. According to technical analysis, the price is trading near the 200-day moving average, constantly breaking it out in both ways. Since December 2017 the resistance has formed on the chart, as the stock still won’t break out. In this situation, the breakout of $57.00 can be a signal for the further growth of the price of the stocks, but, at the same time, it has to be confirmed by good Q3 results. On W1, there is still an uptrend, but we can already see a more serious resistance area from 2015 in the range between $53 and 56. The price is now in this range. The stock already tried to break out of this resistance in January 2018, but is has never managed to secure its position above this resistance. Here there is a high chance of the price falling to the support at $40. Currently, the potential drop of the price of the stock prevails over the growth. The next airline company which we can direct our attention to is American Airlines, Inc. It is also one of the largest airline carriers in the world with headquarters in Fort Worth (Texas). The aircraft fleet of the company amounts to 958 aircraft in total. Unfortunately, recently the financial performance of this airline has not been perfect either. The debt to equity ratio (25.16) clearly demonstrates how risky this asset may be. That means that the company has 25 times more debts than the means to clear these debts. In this situation, the slightest decline of aviation operations may seriously hurt the company. It should be noted that American Airlines has the “youngest” aircraft fleet now, as the company has invested its money exactly in the aircraft, which has caused such debts. Therefore, the company decided to risk, bu investors have not appreciated it, and thus the price of the stocks in 2018 was constantly falling. Currently, the stock is in a downtrend. The price is gradually dropping within the descending channel, breaking out the support levels. However, near the level of $36 there has appeared a surge in rise, which indicates a possible forming of a strong support. This can be due to rumors about Buffett’s interest towards the airline companies: his fund has now about $100 billion of available cash and a part of it will get to the market. Overall, the stocks of American Airlines seem to be a very risky investment. There is another large airline company, which may be interesting from the point of view of investments: United Continental Holdings. United Continental Holdings (NYSE: UAL) is the fourth largest airline company in the United States. It appeared out of the merger of United Airlines and Continental Airlines in 2010. As of June 2018, the aircraft fleet of United Continental Holdings amounts to 716 aircraft. Also, as in the two previously described airline companies, the most successful financial year was 2015. According to those results, profits reached $7.34 billion. The Short Float ratio is 5.20%; the debt of the airline is 1.62 times bigger than its internal funds. On D1, the technical analysis indicates an uptrend, as the price is now above the 200-day moving average and has secured its position above $80. In this situation, the further growth of the price cannot be excluded. On W1, the stock also shows a stable uptrend trend and is currently trading near its historical maximums. Thus, the technical analysis indicates a good growth potential for this stock, but the possibility of the correction of the price to $75 cannot be excluded either. Having summarized the data on the revenue, we can see the big picture in the airline transportation market for 4 airlines. American Airlines has lost the most income, while Southwest Airlines has been constantly increasing its profit. The rest of the data indicates that the riskiest assets is American Airlines – its debt is the biggest out of all the 4 companies, its profitability is low and its Short Float is high. To sum up, for the nearest years Southwest Airlines looks the most attractive investment-wise. Amid all these data, Southwest Airlines noticeably stands out – all the rest have not been able to restore the previous revenue level after 2015. The fact of the matter is that Southwest Airlines has concentrated on low-cost transportation and this decision turned out to be the right one. If Buffett’s fund does buy Southwest stocks, this may become a very good investment for the coming years. Nevertheless, even without it, the expected growth of the passenger throughput will only be increasing the profit of this company and, consequently, the price of its stocks. You should not consider this article as a guideline to follow in any way – this is only information for analysis. Disclaimer Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboMarkets bears no responsibility for trading results based on trading recommendations and reviews contained herein. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Dmitriy Gurkovskiy 4.4 stars on average, based on 6 rated postsHaving majored in both Social Psychology and Economics, I went on to continue my education in post graduate. Later I worked as a team lead of a tech and fundamental analysis lab in the Applied System Analysis Research Institute. This helped me to acquire all necessary skills and experience to become a successful trader and analyst, as well as a portfolio manager in an investment company. I'm a pro in the financial field and the author of articles for various international media. I also hold the position of Chief Analyst at RoboMarkets. Follow @HackedCom Feedback or Requests? Continue Reading 5 of 15 Seats Available Learn more here. 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