deltadude8
Posts: 553
Joined: Fri Feb 18, 2000 12:09 am

Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 6:30 am

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.
 
dutchjet
Posts: 7714
Joined: Sat Oct 14, 2000 6:13 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 6:48 am

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.
 
EMBQA
Posts: 7798
Joined: Sat Oct 25, 2003 3:52 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 7:01 am

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"
 
EMBQA
Posts: 7798
Joined: Sat Oct 25, 2003 3:52 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 7:27 am

...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"
 
srbmod
Posts: 15446
Joined: Tue Mar 20, 2001 1:32 pm

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 8:57 am

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.
 
deltadude8
Posts: 553
Joined: Fri Feb 18, 2000 12:09 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 9:01 am

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
 
EMBQA
Posts: 7798
Joined: Sat Oct 25, 2003 3:52 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 9:40 am

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"
 
avek00
Posts: 3158
Joined: Mon Oct 25, 2004 5:56 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 9:49 am

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 avatar
mariner
Posts: 18253
Joined: Fri Nov 23, 2001 7:29 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 10:18 am

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
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 10:23 am

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
 
iowaman
Posts: 3874
Joined: Thu May 20, 2004 2:29 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 10:32 am

Take your money and run if you have any indication it will go down.. I wish I did with my Indy stock...
 
Zone1
Posts: 894
Joined: Sun Jan 09, 2005 4:47 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 10:59 am

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
 
deltaffindfw
Posts: 1388
Joined: Tue Sep 02, 2003 7:42 am

RE: Why Has DL Stock Jumps Nearly 25% And COA A Ton?

Sat May 28, 2005 11:16 am

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.