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Started By
Message
re: American Airlines down to .26 cents a share...
Posted on 12/7/11 at 9:59 am to Tim
Posted on 12/7/11 at 9:59 am to Tim
Airlines are a great way to lose a ton of money for the opportunity to make meager returns.
I made a profit off of Republic last year (RJet) before the Frontier purchase had a chance to drag them down. I bought it right after they posted a loss due to one time write-offs related to the merger, and sold it right after the Summer earnings came out. (Summer is typically a boon for airlines, winter they can lose a lot of money due to weather cancellations)
Playing the airlines is betting on the cycle. AMR at .26, if you don't mind holding it for a year + can be a good play. The CH. 11 will allow them to renegotiate their very disadvantagous labor contracts. The key is for them to be able to spin off American Eagle and start replacing their fuel guzzling Super 80s (MD-82/3) which form a large part of their domestic fleet.
I made a profit off of Republic last year (RJet) before the Frontier purchase had a chance to drag them down. I bought it right after they posted a loss due to one time write-offs related to the merger, and sold it right after the Summer earnings came out. (Summer is typically a boon for airlines, winter they can lose a lot of money due to weather cancellations)
Playing the airlines is betting on the cycle. AMR at .26, if you don't mind holding it for a year + can be a good play. The CH. 11 will allow them to renegotiate their very disadvantagous labor contracts. The key is for them to be able to spin off American Eagle and start replacing their fuel guzzling Super 80s (MD-82/3) which form a large part of their domestic fleet.
2
Posted on 12/7/11 at 11:03 am to SM6
Agree with everything you said.
The only good investment from airlines are their Enhanced Equipment Trust Certificate (EETC) bonds. Those at least are collateralized by the airplanes and hangars. Historical 95+% recovery value and they trade that way. Bids for these have actually been slightly higher since the Ch.11 announcement.
The only good investment from airlines are their Enhanced Equipment Trust Certificate (EETC) bonds. Those at least are collateralized by the airplanes and hangars. Historical 95+% recovery value and they trade that way. Bids for these have actually been slightly higher since the Ch.11 announcement.
Posted on 12/7/11 at 2:41 pm to SM6
Not really interested in long term with airlines. When a company the size of American dips to cents/share, I pounce. I've lost a lot of money doing this in the past, but I've gained a whole lot more. Buy cheap, sell high. Never take that advice glibly.
kfizz, you know you're my Money boy. Let's both put $1,000 in separate day trader accounts. Invest as we will. Three months later, the account that has more money (without any other cash deposits) gets the whole pot, like being within $100 for the Showcase in Price Is Right. You in? Yeah, me neither. But I respect what you have to say because you call out bozos that know nothing and act like they know something like no other. That's probably what Money Talk needs more than anything else. My boy, kfizz.
BTW, if any of you invested had invested $10K in AMR a week ago when the OP made this thread, you'd have over $40K right now.
for selling at .93. It's now $1.10 and climbing like a jet in the sky. Get the pun? LOL!
kfizz, you know you're my Money boy. Let's both put $1,000 in separate day trader accounts. Invest as we will. Three months later, the account that has more money (without any other cash deposits) gets the whole pot, like being within $100 for the Showcase in Price Is Right. You in? Yeah, me neither. But I respect what you have to say because you call out bozos that know nothing and act like they know something like no other. That's probably what Money Talk needs more than anything else. My boy, kfizz.
BTW, if any of you invested had invested $10K in AMR a week ago when the OP made this thread, you'd have over $40K right now.
for selling at .93. It's now $1.10 and climbing like a jet in the sky. Get the pun? LOL!This post was edited on 12/7/11 at 2:49 pm
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