Delta stock
12-19-2006 | 07:01 AM
#12
Gets Weekends Off
Joined: Nov 2006
Posts: 423
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Delta said today that its plan would let unsecured creditors recover 63 percent to 80 percent of their claims, and that Blackstone Group, a financial adviser, estimates the airline's value at $9.4 billion to $12 billion. Delta said its current shares will be worthless once it leaves bankruptcy.
http://www.bloomberg.com/apps/news?p...P44&refer=home
http://www.bloomberg.com/apps/news?p...P44&refer=home
12-19-2006 | 07:53 AM
#13
Gets Weekends Off
Joined: Jul 2005
Posts: 2,242
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Leo,
Good plan. Another general rule is don't invest any money in stocks below $10 a share that you don't want to lose. There's a reason why it's that low.
If you need to be in an airline, go with "best of breed", or the best 1-2 companies (works in any sector) so for airlines that would be: CAL (which is still fundamentally bad) but overseas such at Ryanair or Cathay (I own Cathay... up 30% since I bought it in July). When you get down to it, there is no growth in the US Airline industry, which is bad. US Airways saw the move because America West of buying a complementary route structure and aircraft at a fire-sale price, and the US Air investors were happy because they were going to get some money.
A better play would be on companies associated with Air Travel since that is doing well as a whole. Companies like this would be Boeing or Sabre (though I think Sabre is being taken private?), or others that provide some service to the industry.
I think US airlines will suck investment wise until capacity gets aligned with demand and a bunch of mergers take place...but, you can look all the way back to the 1930's where people were saying that airlines were a great place to turn a million dollars into nothing!
HTH
Spongebob
Good plan. Another general rule is don't invest any money in stocks below $10 a share that you don't want to lose. There's a reason why it's that low.
If you need to be in an airline, go with "best of breed", or the best 1-2 companies (works in any sector) so for airlines that would be: CAL (which is still fundamentally bad) but overseas such at Ryanair or Cathay (I own Cathay... up 30% since I bought it in July). When you get down to it, there is no growth in the US Airline industry, which is bad. US Airways saw the move because America West of buying a complementary route structure and aircraft at a fire-sale price, and the US Air investors were happy because they were going to get some money.
A better play would be on companies associated with Air Travel since that is doing well as a whole. Companies like this would be Boeing or Sabre (though I think Sabre is being taken private?), or others that provide some service to the industry.
I think US airlines will suck investment wise until capacity gets aligned with demand and a bunch of mergers take place...but, you can look all the way back to the 1930's where people were saying that airlines were a great place to turn a million dollars into nothing!
HTH
Spongebob
-LAFF
12-19-2006 | 07:53 PM
#14
Bored
Joined: Nov 2006
Posts: 445
Likes: 0
From: Grumman Torture Device (weekends only)
LUV is a stock worth buying and holding for the long run
Don't confuse market share with how much a company earns. Southwest flies more for less money...but they usually turn a profit.
You'd make more putting your money in a savings account.
Spongebob
01-11-2007 | 01:38 PM
#15
Gets Weekends Off
Joined: May 2006
Posts: 220
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From: Bug Smasher Captain, CFI
Nope...check the research. As a stock, it ranks 24th out of 32 in the airline sector, has earnings and revenue growth way below the industry average, the stock price/ratios have been stagnant for years (since 2004, as far back as my charts go) and has a crappy dividend.
Don't confuse market share with how much a company earns. Southwest flies more for less money...but they usually turn a profit.
You'd make more putting your money in a savings account.
Spongebob
Don't confuse market share with how much a company earns. Southwest flies more for less money...but they usually turn a profit.
You'd make more putting your money in a savings account.
Spongebob
For those of you playing the Delta "pink sheet" shares, keep in mind that penny stocks are that way for a reason. They are high risk. If you can handle that, then fire away
01-11-2007 | 01:55 PM
#16
Administrator
Joined: May 2006
Posts: 8,025
Likes: 0
From: C-172
Well, I must be an idiot because I own two airline stocks (no, not LUV). The passenger one is doing just great. The freight one, however, has been a major disappointment, even with the price of oil coming down. Not sure what the heck is going on.
I have always believed in the stock market, and indeed, I have a large percentage of both retirement and non-retirement funds in it. Despite the safety measures now in place, it can still be risky, but the returns are well worth it. My advice to the young is to invest in it. You can always add real estate to your portfolio when you get a bit older.
I have always believed in the stock market, and indeed, I have a large percentage of both retirement and non-retirement funds in it. Despite the safety measures now in place, it can still be risky, but the returns are well worth it. My advice to the young is to invest in it. You can always add real estate to your portfolio when you get a bit older.
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