ryane946

Today is the day to buy some airline stock.
I know many of you have sworn to never buy airline stock. Some of you don't want to "put all your eggs in one basket." But I feel you will be making a good choice.

I have had some major success investing in airline stocks. I invested in Boeing, Southwest, and Skywest in March 2003 and sold my Southwest stock in December 2005, and Boeing and Skywest in April 2006. In that time period, Boeing's stock TRIPPLED, Skywest's stock TRIPPLED, and Southwest increased 25%. I turned about $4,500 into almost $12,000 in just 3 years!

The date I invested: March 14th, 2003
The date we went to war with Iraq: March 20th, 2003 (I don't remember the exact date, something like that).

I saw an opportunity and I jumped on it. Since March 2003, I have not quite seen an opportunity to reinvest my money. Until today...
Three major things are happpening from today until through the next week.

1. Airline stocks took "a big huge plunge today." A few examples
   • American -> Down 8.46% ($36.70)
   • United -> Down 8.08% ($44.81)
   • Continental -> Down 5.50% ($44.82)
   • US Air -> Down 6.59% ($53.27)

Expect an immediate bounce upwards in the next several days.

1. The date is fast approaching for Delta to accept US Air's buyout proposal. US Air has said Delta needs to accept its offer by February 1st. There is nothing saying that US Air will not extend their deadline, but there is a chance that a decision will be reached on US Air/Delta in the coming weeks. There is also a good chance (IMHO) that US Air will further increase their $$$ offer for Delta.
   The key here is that if Delta were to accept US Air's offer, not only would US Air's stock go through the roof, but so would United's, Continentals, and possibly American's. We are one merger away from a wave of consolidation. And stocks love that!

1. Oil prices. I was reading United's financial results today, and they spent over 5 BILLION dollars of fuel in 2006 at an average price in the range of $65 a barrel (for oil). Every ONE DOLLAR change in oil prices, United's fuel bill could go up or DOWN by $80 million dollars! Oil is already down $10+ a barrel this year so far. In Bush's state of the union tonight (Tuesday 1/23), he is expected to announce government initiatives to promote the use of Ethanol. As an engineer, I think Ethanol is a crappy idea for a fuel source (1. less of a "kick" per gallon, and 2. Fixing a big problem (demand for energy) by hurting the world's biggest problem (world hunger)). But regardless, it is this kind of speculation that can drive down prices(just like all the speculation around Iran has driven up prices). I think oil prices will either drop or stay low in the near future. This all depends on his attitude towards Iran. If he comes out firm, oil prices could rise. Otherwise, look for beneficial oil prices.

Here is the opportunity. Buy low, sell high. Make some money. I believe the 4 major airlines (not in BK) are good stock picks today (American, United, Continental, and US Air)

P.S. The last stock prediction I made on APC can be seen here. I said Comcast would be a good investment in January 2006. (1 year ago). It was at $26.00 a share. It is now at $44.50. An increase of over 70% in just one year.
http://www.airlinepilotforums.com/showthread.php?t=2235 See post #8!

http://moneycentral.msn.com/investor...&DisplayForm=1
Thought I'd bring that up if you needed some more motivation.

G-Dog

Never buy an airline stock. You buy the stocks of companies that are customers of airlines. ie, boeing.

Ellen

Whatever Guy.

You sound like a "Pump and Dumper." You are right, airlines have increased, so why buy now? Short them, or go long LEAP PUTS. (Same thing). In fact, I actually say BUY OIL now, not airlines. If OIL goes up, Airlines go down.

Bad advice to buy airlines, if you want to invest. I have saved today's prices in order to look at in the next month, 3 month, 6 month and year. We'll see. Thanks for the suggestion, but I think you are off the mark.

ToiletDuck

If you're going to buy wait for the price of oil to jump up. Also when does SW hedge end?

flyflorida2001

According to a former CEO of American Airlines. "The quickest way to become a millionare is to start as a billionare and invest in airlines."

Albief15

One Iranian silkworm missile from $90/barrell oil...

No thanks. I'll stick to buying mason jars in my backyard this time...

quimby

I think I'll stick with the "don't take $$ advice from a pilot". And airline stocks? Don't spend that 12 grand all in one place.

BoxFlyer

Dude, I've got some Western Pacific stock for sell.

ryane946

HAHAHA. I have two things to strut about.

• Three of the four airline stocks rose today. United and American were up 2%!! The only one that fell was Continental because ExpressJet said "4th Quarter earnings fell 8%. That is the difference between earnings of $24 million in 2005 VS $22 million in 2006. BOO HOO!
  If you didn't listen to me yesterday, listen to me today. Buy Continental Airlines stock!!! They are down almost 10% in the last two days. The stock is going to correct itself.
  
• When I went to check on the closing stock prices, I check UAL first. Under the stock price is the most recent four news stories about the company. Three of them said "BUY AIRLINE STOCKS"
  Here are the links FYI:
  
  Airlines Drop To Buying Level (Forbes)
  http://www.forbes.com/2007/01/24/air...rkets02.html?p
  
  Market Report --- In Play, UAL (Briefing.com)
  http://news.moneycentral.msn.com/tic...Symbol=US:UAUA
  
  Ahead of the Bell, Airline Stocks (AP)
  http://news.moneycentral.msn.com/tic...Symbol=US:UAUA
  
  All these articles were written 12-18 hours after I made my buy airline stocks announcment. Even if you missed out on the 2% one day gains my United and American, I still think you should buy, especially Continental before tomorrow.
  Don't let me say, "I TOLD YOU SO!!"

C152driver

Maybe you should get a series 6, since you are already a legend in your own mind....