Originally Posted by
Airsupport
i know what you are saying.
pinnacle stock: in one year has gone from 21.00 to 3.32
skywest stock: in one year has gone from 29.00 to 12.68
northwest stock: in one year has gone from 24.00 to 5.35
delta stock: in one year has gone from 21.00 to 4.80
i know several guys here at pinnacle who think now is the time to buy some pinnacle stock. if we do get a contract and delta says we can keep flying with them that should give the stock a boost. even if it just went up to 10 dollars you just tripled your earnings. i knew several people that bought a lot of our stock after nwa filed for bk and bought our shares at a couple dollars a piece. then when we signed the new contract with nwa it went from 3 dollars to 21 over night.
ANY airline stock is a crapshoot. My financial guy has had standing orders (for years) to not buy airline stocks.
There is nothing about their past performance that would make one believe thay are a good long-term investment, and there is certainly no reason to be optimistic looking forward.
The industry is just too fragile, and subject to too many outside forces. It is not reliably predictable, and it can change dramatically overnight...or in an hour as happened seven years ago.
If you want to use it is a short-term speculative vehicle, sure why not...any equity wich goes up and down can be used for that. Pretty much like betting on the NBA playoffs. Plus since you have some industry knowledge and connections, you MIGHT be able to see something coming before the rest of the speculators.
But if you must dabble in airline equities, PLEASE do not bet the farm on your own company...
1) You are emotionally biased...ie you will probably make stupidly optimistic decisions.
2) When your company takes a big hit, you will be downgraded/furloughed AND lose your savings.
Again speculate if you can afford to, but no long-term nest-egg investments.