Flighty From United States of America, joined Apr 2007, 7438 posts, RR: 2 Posted (5 years 2 months 6 days ago) and read 914 times:
Due to the recent chaos in the US stock market, plus the skyrocketing price of oil in US dollars, American airline company stocks have tumbled pretty low.
Virtually all of them are today down 9-10% below their recent lows.
NWA, $8.68
DAL, $8.68
AMR, $8.43
US, $7.27
All of these airlines reported substantial profits for 2007. So, their P/trailingE ratios are extraordinarily low:
NW, market cap $2.07B, p/e ratio 0.84 (bankruptcy distorted)
DL, market cap $2.54B, p/e ratio 2.12 (bankruptcy distorted)
AA, market cap $2.1B, p/e 4.74
US, market cap $670m, p/e 1.62
CO, $1.78B, p/e 4.31
Jetblueguy22 From United States of America, joined Nov 2007, 2021 posts, RR: 1 Reply 1, posted (5 years 2 months 5 days 23 hours ago) and read 890 times:
AIRLINERS.NET CREW FORUM MODERATOR
I would stay away. First its a really bad time to divee into the market. With the collapse of Bear Sterns the other day be very conservative with your picks. Second airline stocks are notorious for being vlitile. When oil up a penny they are down 10 percent when any other forms of supply go up they go down. Unless you're a big risk taker I would watch out.
Blue
Professor Foltz: You push down on that yolk, the houses get bigger, you pull back on the yolk, the houses get bigger.
Pope From , joined Dec 1969, posts, RR: Reply 2, posted (5 years 2 months 5 days 23 hours ago) and read 878 times:
Quoting Flighty (Thread starter): All of these airlines reported substantial profits for 2007. So, their P/trailingE ratios are extraordinarily low:
Stock prices should reflect the present value of future returns. While past returns offer some insight into how the company will do in the future, the reality of $100+ oil cannot be ignored.
A capital intensive industry operating in a fairly competitive market environment is not a receipt for strong long-terms earnings growth.
Sponsor Message: 
From United States of America, joined Apr 2007, 7438 posts, 
Printer friendly format 
