grimey
Posts: 309
Joined: Tue Jun 07, 2005 2:48 am

Should I Buy Some EI Stock?

Thu May 25, 2006 3:52 am

So should I buy some of EI later this year, would I be making a big mistake or should I just buy a small amount like 1,000 euro worth just for the craic?

And by the way if not EI then what other airline is worth buying stock off? This time last year I was going to buy some in Finnair when it was around 6 Euro a share, it jumped up to 15 euro a share at the start of 2006 and is back down to 10 euro a share today, silly me.

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

RE: Should I Buy Some EI Stock?

Thu May 25, 2006 4:20 am

The stock markets, as you probably know, took a big hit in the past weeks.

Airline stocks are very volatile, and are greatly impacted by fuel prices.....there is quite a bit of risk involved. Some analysts say that if fuel prices ever retreat to $40-$50 levels, airlines will begin making lots of money due to the cost cutting that has gone on over the years, but will oil prices retreat? And, if the world economy slows, travel will weaken hurting airlines.

All of that being said, I own shares in a couple of airlines, small amounts, to show my support......I have watched CO shares go from $40/share to $4/share and back to up $31/share (its at $25 now) for example. If you can afford to risk your entire investment, and its something you really want to do, go for it.........but airline stocks are more like Las Vegas than Wall Street.
 
BCAL
Posts: 2925
Joined: Mon Jun 28, 2004 10:16 pm

RE: Should I Buy Some EI Stock?

Thu May 25, 2006 4:32 am

It depends on your investment objectives - i.e. what sort of risk you are prepared to take. Airlines would probably be categorised as "High Risk" these days. You could make a fortune (think of the return that early investors with FR achieved) and equally you could lose everything.

Having said that, one should never ask for specific investment advice except from someone who is both professionally qualified and authorised to give such advice.
MOL on SRB's latest attack at BA: "It's like a little Chihuahua barking at a dying Labrador. Nobody cares."
 
BDKLEZ
Posts: 1687
Joined: Sun Jun 26, 2005 11:57 am

RE: Should I Buy Some EI Stock?

Thu May 25, 2006 4:55 am

Quoting BCAL (Reply 2):
Having said that, one should never ask for specific investment advice except from someone who is both professionally qualified and authorised to give such advice.

That's the very best advice that can be given.

Look at the things that have happened in recent years that have caused airline sticks to tumble with all but a very few exceptions.

BSE
Sept. 11th
SARS
Asian Tsunami
Hurricane Katrina

Theses dramatic world events cause the general public to stop travelling and as such it's very difficult for the industry to predict possible travel requirements in the immediate aftermath and as such, confidence in airline stocks will have fallen which will result in the value of the stocks falling also.

It's a very risky business to invest in as BCAL has already suggested.

[Edited 2006-05-24 21:55:38]
Trespassers will be shot; survivors will be shot again!
 
babybus
Posts: 2379
Joined: Sun Dec 28, 2003 5:07 am

RE: Should I Buy Some EI Stock?

Thu May 25, 2006 7:05 am

I read in "The Irish Post" today that Aer Lingus were delaying their privatisation till next year as they think the financial markets are not in the best shape right now.

This gives you a bit more time to monitor their development and financial progress before you decide to buy or not.
and with that..cabin crew, seats for landing please.