Thomacf From United States of America, joined Sep 2000, 546 posts, RR: 0 Posted (9 years 10 months 2 weeks 5 days 3 hours ago) and read 4694 times:
Has anyone out there made any money investing in the airline industry over the past 5 years?
One interesting piece of advice I heard from a portfolio manager friend of mine was buy up UAL stock and short AMR stock. I can see the thinking behind this and it is risky, but it made me think about all the smart investors our there that were probably shorting airline stock in a Bearish airline market, while watching/buying oil futures and making an absolute ton.
HAJFlyer From Switzerland, joined Sep 2005, 1475 posts, RR: 8
Reply 1, posted (9 years 10 months 2 weeks 5 days 3 hours ago) and read 4688 times:
A few years back I was trading a few airline stocks (primarily Northwest, Mesaba, Great Lakes Aviation), but I eventually got out because I work for a financial institution that required me for compliance reasons to do all the trading through their account and they required all employees to hold a stock for at least 2 weeks and did not allow them to short (you could buy puts though).
IMHO the only way to make money in airlines stocks is by trading them very actively and capitalise on the high volatility; this sector is definitely the wrong one for "buy and hold" types.
Alphascan From United States of America, joined Nov 2003, 937 posts, RR: 12
Reply 2, posted (9 years 10 months 2 weeks 5 days 3 hours ago) and read 4679 times:
I don't know if I would trust that portfolio manager's advice. The UAL stock is scheduled to be worthless on Feb. 1 and has been predominantly a day trading stock since they filed for Chapter 11.
However, with the announcements over the weekend that almost every stakeholder in the UA reorg plan has problems with it, there may be a longer window for day trading in UAL stock. Damn risky though and would take a lot of attention.
"To he who only has a hammer in his toolbelt, every problem looks like a nail."
Justapassenger From United States of America, joined Dec 2004, 95 posts, RR: 0
Reply 4, posted (9 years 10 months 2 weeks 4 days 23 hours ago) and read 4607 times:
In the last couple of years I have made more than I have lost with CAL, NWA, FRNT and LUV. I have not invested heavily in these stocks and I have been careful to buy at the bottom of their trading ranges and sold before they got to the top of their predicted range. I have also never held those stocks for more than a week (except for LUV which I held for two weeks). I consider myself to have been lucky.
Iowaman From , joined Dec 1969, posts, RR:
Reply 5, posted (9 years 10 months 2 weeks 4 days 22 hours ago) and read 4577 times:
Quoting Thomacf (Thread starter): Has anyone out there made any money investing in the airline industry over the past 5 years?
I made a small profit off of FRNT stock, and a big ass loss on FLYI stock. Unless you are willing to take extreme risks the only airline stocks that seem to be stable are LUV and somewhat stable JBLU and AAI.
MrMcCoy From United States of America, joined Sep 2005, 377 posts, RR: 1
Reply 8, posted (9 years 10 months 2 weeks 4 days 22 hours ago) and read 4534 times:
I've been dollar-cost averaging on TZ's stock since they went to the Pink Sheets, and I'm hoping (praying is more like it) that by some miracle the Dec. 31st financial statements will reflect positively. Otherwise I'm SOL.
It only takes five years to go from rumor to standard operating procedure.