Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
codeshare
Topic Author
Posts: 1689
Joined: Tue Sep 10, 2002 2:23 am

Airline Stocks.

Wed Oct 15, 2003 4:49 am

I was just wondering, if anybody here invests their money in stocks of airline companies, or other companies closely related to aviation.

...apart from investing into new photographical equipment (its me and the photographers here)  Big grin
How much A is there is Airliners Net ? 0 or nothing ?
 
flyboyaz
Posts: 2077
Joined: Sat Sep 13, 2003 11:32 am

RE: Airline Stocks.

Wed Oct 15, 2003 4:53 am

I've worked for HP for a few years now and just recently bought stock. I bought it when it was at $2 a share and now it's up to $11...higher than it was before 9/11. I've made a big chunk! Hopefully it will stay that way  Smile
Catch a ride on a smile!
 
meister808
Posts: 924
Joined: Sat Jan 01, 2000 11:45 am

RE: Airline Stocks.

Wed Oct 15, 2003 4:57 am

No, but I did play a stock market game in high school, for a class, and I bought lots of shares of Southwest, and it grew like a mother. So, airlines are a good investment, if you stay on top of them. For instance, now would be a good time to grab some, because the industry is supposedly rebounding.

-Meister
Twin Cessna 812 Victor, Minneapolis Center, we observe your operation in the immediate vicinity of extreme precipitation
 
goingboeing
Posts: 4727
Joined: Sat Dec 04, 1999 1:58 am

RE: Airline Stocks.

Wed Oct 15, 2003 5:05 am

Here's a good rule of thumb on investing in airline stocks - don't put the grocery money in them.

They are very cyclical and are considered one of the "riskier" stocks out there. I've owned Southwest stock for several years and it's been pretty good. But you've got to be really careful in picking your stocks. For example, UAL stock looks like a steal at $1.04, but when they emerge from bankruptcy that stock may become worthless (as it did with USAirways). Jetblue, IMHO is way too expensive to buy right now. But the thing about airline stocks is that if oil goes up, the stock dumps, if an analyst farts - there's usually a mad rush to unload the stock.
 
andersjt
Posts: 367
Joined: Tue Jul 22, 2003 3:50 am

RE: Airline Stocks.

Wed Oct 15, 2003 5:06 am

I had been accumulating UAL stock ever since I was 16 (26 years ago). At one time, my 2,150 shares were worth over $200K. I sold them last year for $3K after Mr. Tilton announced that they would most likely be worthless after they emerge from bankruptcy.

Airlines are definitely not "buy and hold" stocks. Invest carefully.



Oh how I long for the day when the skies were truly Friendly!
 
artsyman
Posts: 4516
Joined: Wed Feb 28, 2001 12:35 pm

RE: Airline Stocks.

Wed Oct 15, 2003 5:11 am

So, airlines are a good investment, if you stay on top of them. For instance, now would be a good time to grab some, because the industry is supposedly rebounding.
******

Airlines are not a good investmment in general, as their entire model is more or less flawed with heavy fixed costs and very low margins. While I would certainly agree that there has been somewhat of a rebound in the industry recently, it is already priced into the stock, and I would really advise people thinking of investing in the airlines at the moment, to... er not do it.

Like the HP employee above, I bought a motherload of Continental shares post 9.11 for around $3 per share, and today is around $22, but these sort of things are not normal, not common of the market in general. At $3, I saw a low risk opportunity, so I bought it, but I wouldn't buy more at todays price when the industry is still struggling and extremely vulnerable. That said, I am holding my Continental stock, but will think about selling it when it gets to $30

Jeremy

[Edited 2003-10-14 22:13:23]
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Airline Stocks.

Wed Oct 15, 2003 5:16 am

Warren Buffet the famous investor has a saying when it comes to airline stock! Here it is, tho not sure I am quoting word for word, "If you want to be a millionaire in the airline industry, just invest a billion dollars in airline stock and so you will be!"

I do own several airline stocks and presently have several set up to sell once they reach a certain price as the risk is to great for the amount of shares I have.
You can cut the irony with a knife
 
srbmod
Posts: 15446
Joined: Tue Mar 20, 2001 1:32 pm

RE: Airline Stocks.

Wed Oct 15, 2003 5:26 am

Southwest is probably the only airline stock that has any stability compared to most of the industry. AirTran is really just now trading in the price range they should be trading at (I bet some folks who bought it back when it was $2 and some change last year are real happy right now). JetBlue is a seriously overrated and overvalued stock. The fact that the stock has split twice in the short time it has been on the market makes me believe that eventually the stock value will become diluted due to the number of outstanding shares being traded due to the splits.
 
jfktowerfan
Editor
Posts: 982
Joined: Tue Sep 11, 2001 12:58 am

RE: Airline Stocks.

Wed Oct 15, 2003 5:28 am

I bought B6 Stock last December and its has gone up 154% since then!!!!! Man was that a sweet buy!

Corey
C'mon Man
 
andersjt
Posts: 367
Joined: Tue Jul 22, 2003 3:50 am

RE: Airline Stocks.

Wed Oct 15, 2003 5:32 am

JFKTOWERFAN -

You might consider taking your profits now. Just the slightest bit of bad, or neutral news coming from B6, and you will see the market running from the stock.
Oh how I long for the day when the skies were truly Friendly!
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Airline Stocks.

Wed Oct 15, 2003 5:36 am

B6 also just announced a stock split of 3 shares for every 2 payable in November, this will be there 2nd split since going public. I have done very well with them.
You can cut the irony with a knife
 
F9Widebody
Posts: 1475
Joined: Thu Sep 18, 2003 5:47 am

RE: Airline Stocks.

Wed Oct 15, 2003 7:27 am

I just bought some Fedex stock yesterday. It is really expensive ($71,) and I am going against the basic rule of buy-low, sell-high. However, they have some real opportunity for expansion, especially in their ground market, which is eroding UPS's business, and I think it will pay off in the long run. Hey, it already went up $2.50 today!

Regards,
F9W
YES URLS in signature!!!
 
User avatar
Goose
Posts: 1773
Joined: Thu Aug 21, 2003 3:40 am

RE: Airline Stocks.

Wed Oct 15, 2003 7:31 am

I've owned WS stock for some time now.... and have seen my stock gain $10/share in the past year.
"Talk to me, Goose..."
 
elwood64151
Posts: 2410
Joined: Fri Feb 08, 2002 10:22 am

RE: Airline Stocks.

Wed Oct 15, 2003 7:43 am

When I worked for Vanguard, I bought $300 worth of stock through the employee stock purchase plan. Those share are now worth, of course, absolutely zero.

When I was working for AirTran, I didn't have the money to buy shares at less than $3 per share (I think it was down to $1.77 at one point). I'd have bought the maximum if I could've afforded it. Those shares closed today at $18.83 each. Can you say "cha-ching"? I do know some of my co-workers bought some at the time, and I bet they're happy they did.

In any event, airline stocks are hit-or-miss, especially when you consider that crashes, terrorist acts, and the cyclical economic structure we have wreak havoc on their profitability.

And by the way: Airlines are not inherently flawed models. The major problem they have is human: Lack of concern for their fixed-cost structure when times are good. You can say that about a lot of companies.
Those who fail to learn history are doomed to repeat it in summer school.
 
richierich
Moderator
Posts: 3632
Joined: Sat Nov 04, 2000 5:49 am

RE: Airline Stocks.

Wed Oct 15, 2003 7:52 am

I would think most people on this site realize the volatile world that all airlines operate in and this is especially true when it comes to airline stocks. Most airline's stocks go up and down like yo-yos.

My advice: be careful. Airline stocks are not always safe bets, although some have been doing very well in the past few years. JetBlue and Southwest have been great, although one wonders how high is too high. On the other hand, the major airlines struggling to stay afloat have had terrible stock prices. But maybe now is the time to buy some of this stock while it is so low? Who knows. Just don't put all of your eggs in one basket!!
None shall pass!!!!

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos