Stock Prices
05-22-2008 | 12:47 PM
#12
Gets Weekends Off
Joined: Feb 2006
Posts: 146
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From: left seat regional
If my current gig paid enough money to put away for investments at this point in my life I CERTAINLY wouldn't be gambling it away on airline stocks! No matter what the best anylists are saying! 
05-22-2008 | 12:51 PM
#13
Gets Weekends Off
Joined: Feb 2007
Posts: 440
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My guess would be the recent announcement of American to park some airplanes and cut back on its workforce. To an investor it makes the company appear to be proactive in streamlining its cost and plotting a chart towards profitability. Chances are good that others may follow suit, and with airline stocks fairly low over the past several weeks, many investors may want to purchase while stock prices are still cheap. In other words, there is a sale on airline stocks and investors are betting that many others will follow American's lead - and that will ultimately lead to increases in the price of stock. Buy low and sell high.
05-22-2008 | 12:53 PM
#14
Gets Weekends Off
Joined: Feb 2007
Posts: 440
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I have to agree with you. Too much risk and very seldom do the stocks outperform other viable options.
05-22-2008 | 01:02 PM
#16
Gets Weekends Off
Joined: Jul 2007
Posts: 576
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The trick is, of course, knowing when to buy and when to sell. Those who bought AMR @ $1.52/ share in '03 and sold for $37.23 in '07 made 24.5 times their original money making many multi-millionaires out of ordinary pilots in just 4 years. (I wasn't one of them) But yes, airlines are generally very poor-performing stocks. I like to joke I work for a large non-profit conglomerate.
05-22-2008 | 01:02 PM
#17
Gets Weekends Off
Joined: Feb 2007
Posts: 440
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Your money is safe under a mattress until the mattress disappears.
05-22-2008 | 09:33 PM
#18
Line Holder
Joined: Jun 2006
Posts: 42
Likes: 0
From: Chairflying
A dead cat bounce... the price isn't going up because of investors who think the price will go up. Many pro investors and hedge fund managers have long ago sold most airlines short. After the recent spiral down and yesterdays drop, this seems like as good of a place as any to exit those positions.
If they sold AMR short in December at $20 and closed their position today at $6.50, that is a 300% profit in six months. Not too shabby.
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