thomacf
Posts: 525
Joined: Tue Sep 05, 2000 9:11 am

Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 1:23 am

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
Posts: 1349
Joined: Fri Sep 16, 2005 7:34 pm

RE: Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 1:30 am

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
 
alphascan
Posts: 795
Joined: Mon Nov 24, 2003 12:04 am

RE: Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 1:37 am

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."
 
klmcedric
Posts: 696
Joined: Mon Dec 29, 2003 11:19 pm

RE: Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 3:56 am

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!
 
justapassenger
Posts: 75
Joined: Wed Dec 15, 2004 9:36 pm

RE: Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 5:25 am

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
Posts: 3878
Joined: Thu May 20, 2004 2:29 am

RE: Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 6:02 am

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.
 
User avatar
mariner
Posts: 18104
Joined: Fri Nov 23, 2001 7:29 am

RE: Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 6:21 am

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
 
loisencroach
Posts: 372
Joined: Sun Sep 18, 2005 3:56 am

RE: Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 6:38 am

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.
 
MrMcCoy
Posts: 361
Joined: Thu Sep 29, 2005 4:17 am

RE: Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 6:48 am

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.
 
Leezyjet
Posts: 3540
Joined: Sun Oct 14, 2001 7:26 am

RE: Making Money On The Airlines In The Stock Market

Tue Oct 18, 2005 7:09 am

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"

Who is online

Users browsing this forum: agrflyer, AS512, Baidu [Spider], czpdx, deltacto, ericaasen, Google Adsense [Bot], LAX772LR, leftyboarder, Mani87, masseybrown, Mywhitespy, odie, Qatara340, SOBHI51, StTim, TheF15Ace, Thunderboltdrgn, waly777 and 271 guests