Stock Prices
 

Can someone answer this question? On a day when oil prices have reached another record high of over $135, why are most airline stocks up? I dont get this!

Because they can only go so low? =) J/K.

Lets hope so! I just dont get the stock markets. Seems like if someone breathes the wrong way things just go haywire. To me there seems to be no logic to it, maybe Im just ignorant!

It's because oil is down to around $132 at this time.


http://www.321energy.com/charts/tmp/chart.jpg

Not SKYW. Their stock is down about $3 in the past two days.

i was going to say the same thing. my buddy said their stock has gone from 25 dollars to 15 almost overnight. pinnacle is trading at a whopping 7dollars!!

Alot of airlines are still struggling though. Regionals like ExpressJet, MESA, and Republic are some of the biggest price decliners for the past couple of days. American and other legacies are also taking the hit

Look at yesterday's trading. The airline sector took an absolute beating, so it's common to have a small rebound after such a dip.

XJT was down 53% today at one point to set a new 52 wk (and all-time) low after they announced their 30% schedule reduction

Buy Buy Buy!

If the SKYW offer comes through at $3.50/ share, you will more than double your money

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! :eek:

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.

I have to agree with you. Too much risk and very seldom do the stocks outperform other viable options.

I think I'll just take any extra money I have and hide it under my matress, thats seems to be the safest thing to do at this point in time.

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.

You are safe to invest it into the market. Just don't invest for the short-term. Over the course of say, 30 years, the market will have its ups and downs. But over the course of that time your overall gain will far exceed any downs.

Your money is safe under a mattress until the mattress disappears.

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.