Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Why Has DL Stock Jumps Nearly 25% And COA A Ton?  
User currently offlineDeltadude8 From United States of America, joined Feb 2000, 569 posts, RR: 4
Posted (9 years 4 months 4 weeks 1 day 3 hours ago) and read 2452 times:

Well...I own a hefty amount of Delta stock...and I was wondering if anyone could explain to me why in the past 3 days DL stock has jumped nearly 1 dollar over last week's price...A nearly 25% gain...Which is great for me.

Anyway...I looked at Delta.com, and NYSE.com under both news sections but neither really give a reason for other investors to have hope in DL...(i.e. no posting of a profit, order of Boeing aircraft etc. etc.)

So what is going on in the aviation industry or at least with DL that would cause this jump....(is there a rumor of lower gas prices???)

Also COA/Continental stock was on the rise...and AMR as well...
Just wondering why the big jumps for everyone yesterday?

Thanks.

12 replies: All unread, jump to last
 
User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 57
Reply 1, posted (9 years 4 months 4 weeks 1 day 3 hours ago) and read 2420 times:

There was a piece on CBS Marketwatch about this - US airlines stocks have had a good couple of days. Reasons? Fares and yeilds are getting a little better, good bookings for the summer season, record, or near record traffic expected for the US memorial day weekend and oil prices were moderating (they jumped up in the past 36 hours, thus airline stockes softened a bit today). Delta shares were up 15% in the past few days, the big jump is because DL shares were beaten down in recent weeks.

Overall, there is some hope in the financial markets that the US legacy carriers will benefit from a strong summer travel season and, if that trend continues, the carriers will regain profitablity (or atleast cut huge losses)....the airlines will also benefit from the drastic cost cutting the airlines have gone through.


User currently offlineEMBQA From United States of America, joined Oct 2003, 9364 posts, RR: 11
Reply 2, posted (9 years 4 months 4 weeks 1 day 2 hours ago) and read 2388 times:

Take the 25% profit and sell now. If they go chaper 11 all that paper will be good for is to paper the bottom of your bird cage....and your not far from that now.

Edit:.. A -16 P&E.....?? SELL NOW...!!!

[Edited 2005-05-28 00:06:55]


"It's not the size of the dog in the fight, but the size of the fight in the dog"
User currently offlineEMBQA From United States of America, joined Oct 2003, 9364 posts, RR: 11
Reply 3, posted (9 years 4 months 4 weeks 1 day 2 hours ago) and read 2347 times:

...and I was just thinking.

I did the same dumb thing at your age. A big aviation geek I invested $1000 into an airline that went Chapter 11 and later belly up and lost it all. Had I been smart I would have invested that same $1000 at the same time into Harley Davidson.. and that would now be worth nearly a half a million dollars.



"It's not the size of the dog in the fight, but the size of the fight in the dog"
User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 4, posted (9 years 4 months 4 weeks 1 day 1 hour ago) and read 2276 times:

Drop in oil prices, the beginning of the busy Summer travel season (which looks to be the best since 2001), 6.4 million people are predicted to fly during the Memorial Day weekend.

A few airline quotes of interest

Delta (DAL) $3.99 +0.12 +3.10%
AirTran (AAI) $9.94 -0.16 -1.58%
World (WLDA) $8.50 +0.13 +1.55%

I choose FL and WO to illustrate a point. We've got a legacy carrier, a low cost carrier and a charter carrier.

DL is a legacy carrier flirting with bankruptcy and the decline of the stock in the last few years is the result. FL has been able to maintain a decent amount of profitabilty (with a few quarters of loss) as a result of the airline being a LCC. WO's stock has really shot up this year, more than doubling in price. I guess with the guaranteed money they're getting with those military charters and the various AMCI Cargo contracts has really helped them out. Plus they picked up NA as well.


User currently offlineDeltadude8 From United States of America, joined Feb 2000, 569 posts, RR: 4
Reply 5, posted (9 years 4 months 4 weeks 1 day ago) and read 2269 times:

thanks for the investing advice...but I have my reason for investing in DL:

Recently (spring break) I took a trip MCI-ATL-JFK-MAD-ATL-MCI in Business Class on a family buddy pass...If I had gone to MAD and paid a real bx. class ticket the price would have been around $4866.10. So I figure if I lose $500-$1000 dollars investing in stock I purchased at $3.10...I am still up money. It might sound confusing but it makes sense trust me. And if it gets a little I might end up making bank on it...Right now I'm up quite a bit. So I'm gonna stay with Delta.

Thanks for the info...just curious as to why they jumped


User currently offlineEMBQA From United States of America, joined Oct 2003, 9364 posts, RR: 11
Reply 6, posted (9 years 4 months 4 weeks 1 day ago) and read 2229 times:

No, actually I understand where you coming from.

If you can keep a close eye on your stock, and have an on-line account you can do a little 'day trading'. In your mind choose your selling price and when it hits it sell. You can't second guess if it keeps going up. Just be happy your walking away with a profit. Then of course comes Uncle Sam who will take his nice big chunk of your profit. Keep in mind that Delta is on very shakey ground, so you can walk away with a profit...do it and in turn you where paid to see Madrid..!!



"It's not the size of the dog in the fight, but the size of the fight in the dog"
User currently offlineAvek00 From United States of America, joined Oct 2004, 4405 posts, RR: 19
Reply 7, posted (9 years 4 months 4 weeks 1 day ago) and read 2216 times:

Actually, I don't understand why you'd want to hold DAL - the stock will likely crater again in a few months once the summer travel season ends and the undertaker comes knocking at a door on Virginia Ave.


Live life to the fullest.
User currently offlineMariner From New Zealand, joined Nov 2001, 25415 posts, RR: 86
Reply 8, posted (9 years 4 months 4 weeks 23 hours ago) and read 2174 times:
Support Airliners.net - become a First Class Member!

Quoting Deltadude8 (Reply 5):
It might sound confusing but it makes sense trust me.

No, it doesn't. Trust me.  Smile

But what the heck, it is your money, and it is your right to gamble/invest/make an act of faith in Delta/whatever.

Just be aware that - presently - the stock is up a bit because it was down so much.

It may - stress "may" - go up again. If CEO Grinstein can pull a rabbit out of the hat, then it may go up a fair bit. That's your gamble/act of faith.

However, it ain't pretty over there, financially, and many believe that Delta will have to file Chapter 11.

So as long as you are aware of the risk, then if investing in Delta gives you pleasure, the only question for you is - is that pleasure worth the possible price?

Good luck.

cheers

mariner



aeternum nauta
User currently offlineLuv2fly From United States of America, joined May 2003, 12119 posts, RR: 49
Reply 9, posted (9 years 4 months 4 weeks 23 hours ago) and read 2166 times:
Support Airliners.net - become a First Class Member!

Quoting Mariner (Reply 8):
No, it doesn't. Trust me.

But what the heck, it is your money, and it is your right to gamble/invest/make an act of faith in Delta/whatever.

Just be aware that - presently - the stock is up a bit because it was down so much.

It may - stress "may" - go up again. If CEO Grinstein can pull a rabbit out of the hat, then it may go up a fair bit. That's your gamble/act of faith.

However, it ain't pretty over there, financially, and many believe that Delta will have to file Chapter 11.

So as long as you are aware of the risk, then if investing in Delta gives you pleasure, the only question for you is - is that pleasure worth the possible price?

Good luck.

cheers

mariner

I have to agree, I myself have invested in several airlines and only enough I can afford to lose, though so far, and knock wood, all is well.



You can cut the irony with a knife
User currently offlineIowaman From United States of America, joined May 2004, 4416 posts, RR: 6
Reply 10, posted (9 years 4 months 4 weeks 23 hours ago) and read 2149 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Take your money and run if you have any indication it will go down.. I wish I did with my Indy stock...

User currently offlineZone1 From United States of America, joined Jan 2005, 1035 posts, RR: 7
Reply 11, posted (9 years 4 months 4 weeks 22 hours ago) and read 2102 times:

I would take your gain now, and do something that would actually help Delta--book that business class ticket! Buying DAL stock really doesn't help them that much at all. Buying stock doesn't put money in Delta's bank account.


/// U N I T E D
User currently offlineDeltaFFinDFW From United States of America, joined Sep 2003, 1445 posts, RR: 0
Reply 12, posted (9 years 4 months 4 weeks 22 hours ago) and read 2082 times:

The gain is also due to the fact that JP Morgan raised their rating from neutral to overweight. This is always cause a temporary pop in a stock. It's the typical investor reaction - an analyst says a good thing and the stock moves up. It informally known as the "CNBC effect" in the financial community. That coupled with the above posts (strong summer nos) is giving the airline a small run. Check the YTD price change: -48.3%. Not too impressive.

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
US Shuttle Or DL Shuttle? Which Is Better And Why? posted Thu Dec 28 2000 06:11:47 by VirginA340
Why Has This Plane Been In And Out Of Dublin? posted Sun Jun 25 2000 18:13:37 by Aer Lingus
Has DL Converted All The Song 757's? posted Sun Nov 26 2006 17:18:53 by Evan767
DL's Upgraded 757s: Which Routes And How Many? posted Fri Nov 10 2006 23:50:41 by Ikramerica
Why No Alliance For EK, EY, MP And LT? posted Sat Oct 21 2006 17:50:21 by RicardoFG
Why Did DL Have To Pay UA To Start LGW-JFK Route? posted Sun Oct 15 2006 22:33:30 by Gilesdavies
Why Is There A Gap Between The 787-3 And 787-8? posted Tue Sep 19 2006 05:00:13 by JAM747
Has DL Given Up Expanding At BOS? posted Thu Sep 14 2006 12:36:27 by ChrisNH
Why Did DL Close DFW Hub? posted Tue Sep 5 2006 02:28:42 by AeroMaxx
DL Mainline Returns To ICT And CAK posted Sat Aug 5 2006 20:18:43 by DeltaMIA