Airline Stocks

montanapilot

Well-Known Member
Well i m thinking of investing some money while i have it in the stock market. I was wondering what you people think of airline stocks a good investment or no? with the economy potentially recovering. I am particularly interested in AMR. Thanks.
 

John_Jones

New Member
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I was wondering what you people think of airline stocks a good investment or no?

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No (atleast in my opinion). I'm not investing right now and have sold all my stocks. I cant lose money (already did) and I aint' doing it again. If your in a position were you can wait a little while (patience is the key) and afford to lose money, I guess theres no reason to not try-Just risky.
 

sigmanu499

New Member
Generally speaking airlines are poor investments, however in todays market with the low cost shares of companies such as AMR it may not be a bad idea for the long term. Dont think you will get much out of it in the short term, you may even lose money in the short term. But when the economy full recovers you may be able to make lots. Remember at one time UAL was trading over $100. I feel the market can do that again. But remember the economy works in cycles, if you wait too long to sell we will be in a poor economy again, and prices will go back down. I think the idea would be to buy now at low costs and then get out after you make some money, because as I said airlines are tradionaly poor investments.
 

tonyw

Well-Known Member
What's the best way to make a million bucks in the airline industry?

Start with a billion.

Even Warren Buffet couldn't figure out a way to make money on airline stocks -- he used to own US Airways stock. So, if the Oracle of Omaha can't figure out a way to do it, I don't think anyone can.

The only way I would invest in airline stocks is if you are doing it hoping to pick up a short term (year or two) pop and then get out. Buy it when they're losing money, and sell it as soon as they start to make money.

But that takes guts that I don't have. You have to buy the stock when people are talking about bankruptcy filings and such, and then sell it when people are talking about great labor contracts that will bring peace for the next five years.
 

flyguy

Well-Known Member
Definately a bad idea for the day trader, however if you look at most airlines' stocks today compared to five years ago, you'll see that they are substantialy lower today and will likely be high again in 5 years from now. This is a very cyclical industry and it predictable how the economy will effect it. One could actually make a pretty low risk investment by buying during times like these and selling during the hiring swings. It is about a 10 year cycle though.
 

aloft

New Member
Actually, right now is a very good time to buy into the stock market. The economy has bottomed out and has nowhere to go but up. Personally, I'd steer clear of the service sector, which the airlines are part of, but many other sectors look good...even tech stocks, believe it or not; my Cisco stock is up something like 37% over the last year.
 

IrishSheepdog

Sitting in the median
Airline stocks have always been cyclical. Even ATAH stock was up at $22 once. The best suggestion about airline stock is to buy in a downturn, and sell in the upswing. But isn't that the same for all stocks?
I wouldn't expect to hold onto it for more than 2 or 3 years though. Sell it when you think you can comfortably give it up. It's a gamble.
 

Mr_Creepy

Well-Known Member
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Actually, right now is a very good time to buy into the stock market. The economy has bottomed out and has nowhere to go but up. Personally, I'd steer clear of the service sector, which the airlines are part of, but many other sectors look good...even tech stocks, believe it or not; my Cisco stock is up something like 37% over the last year.

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Aloft I think you were right about a year ago. The market indices have risen quite a bit since then.

We are still not up to pre 9-11 levels so hopefully things will rise some more!

I bought Mesa at $4 the first day after 9-11 that the market was open. It was a great move, as I sold some of it earlier this year at $10 and made all my money back (and then some!)

It may not be best for the employees, but the Mesa-ACA takeover sure seems to be having a favorable effect on those two stocks.
 
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