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Making Money On The Airlines In The Stock Market  
User currently offlineThomacf From United States of America, joined Sep 2000, 542 posts, RR: 0
Posted (8 years 9 months 1 week 6 days 2 hours ago) and read 3869 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.

9 replies: All unread, jump to last
 
User currently offlineHAJFlyer From Switzerland, joined Sep 2005, 1473 posts, RR: 9
Reply 1, posted (8 years 9 months 1 week 6 days 2 hours ago) and read 3863 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.

At the moment I am primarily in oil & gas


User currently offlineAlphascan From United States of America, joined Nov 2003, 937 posts, RR: 13
Reply 2, posted (8 years 9 months 1 week 6 days 2 hours ago) and read 3854 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."
User currently offlineKLMCedric From Belgium, joined Dec 2003, 810 posts, RR: 22
Reply 3, posted (8 years 9 months 1 week 6 days ago) and read 3815 times:

I think that all Air France and KLM stockholders that traded in their shares
for AF-KL stock a while ago are pretty happy right now!


User currently offlineJustapassenger From United States of America, joined Dec 2004, 95 posts, RR: 0
Reply 4, posted (8 years 9 months 1 week 5 days 22 hours ago) and read 3782 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.

User currently offlineIowaman From United States of America, joined May 2004, 4365 posts, RR: 6
Reply 5, posted (8 years 9 months 1 week 5 days 22 hours ago) and read 3752 times:
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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.



Next flights: WN DSM-LAS-PHX, US PHX-SJD. Return: US SJD-PHX, WN PHX-MDW-DSM
User currently offlineMariner From New Zealand, joined Nov 2001, 25004 posts, RR: 85
Reply 6, posted (8 years 9 months 1 week 5 days 21 hours ago) and read 3726 times:
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Quoting Thomacf (Thread starter):
One interesting piece of advice I heard from a portfolio manager friend of mine was buy up UAL stock

That is probably the worst piece of stock market advice I have heard in some time.

As Alphascan notes - and as United has stated - the present stock will cancelled when they emerge from bankrutpcy.

http://www.united.com/page/framedpage/0,6837,1378,00.html

As the company said would likely be the case for some time, the proposed Plan stipulates that UAL's current Common stock will be terminated and cease to have any value.

The same thing happened with US Airways and will almost certainly happen with Delta and Northwest.

cheers

mariner



aeternum nauta
User currently offlineLoisencroach From United States of America, joined Sep 2005, 373 posts, RR: 5
Reply 7, posted (8 years 9 months 1 week 5 days 21 hours ago) and read 3715 times:

I don't invest in stocks right now because I am a broke ass college student. I do know, however, that if any of your stock portfolio has any association with the name Stephen Wolf, sell it all.

User currently offlineMrMcCoy From United States of America, joined Sep 2005, 377 posts, RR: 2
Reply 8, posted (8 years 9 months 1 week 5 days 21 hours ago) and read 3709 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.
User currently offlineLeezyjet From United Kingdom, joined Oct 2001, 4041 posts, RR: 53
Reply 9, posted (8 years 9 months 1 week 5 days 20 hours ago) and read 3694 times:

I bought £100 worth of shares in BA just after 11/09 when they were worth 136p each. They are now worth around 300p each, so not a bad return on £100 really.

Just hope they go back upto their mid 90's peak of around 700p - now that would be a good return !!!.

 Smile



"She Rolls, 45 knots, 90, 135, nose comes up to 20 degrees, she's airborne - She flies, Concorde Flies"
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