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So when are we buying airline stocks?
Posted on 3/4/20 at 9:39 pm
Posted on 3/4/20 at 9:39 pm
I’ve been watching the airlines and of course monitoring the coronavirus updates with respect to these stocks since the correction began. Specifically, I think Delta (DAL) and United (UAL) are the two leading candidates to buy low and take advantage of the rebound both in the market and travel & leisure.
Both have favorable financials, favorable analyst price targets, and favorable P/E comparisons with their peers. Delta has the Berkshire stake and subsequent purchase of almost 1 million additional shares during the correction and that is where I personally lean in the group. The question for me is mostly when to pull the trigger. I believe we have more conference cancellations to come. More personal travel flight cancellations to come. More paranoia to come.
Thoughts on timing of opening a position and preferred airline?
Both have favorable financials, favorable analyst price targets, and favorable P/E comparisons with their peers. Delta has the Berkshire stake and subsequent purchase of almost 1 million additional shares during the correction and that is where I personally lean in the group. The question for me is mostly when to pull the trigger. I believe we have more conference cancellations to come. More personal travel flight cancellations to come. More paranoia to come.
Thoughts on timing of opening a position and preferred airline?
9
Posted on 3/4/20 at 9:40 pm to DabosDynasty
If you can wade through it like warren buffet, then now.
Posted on 3/4/20 at 9:42 pm to DabosDynasty
I’d give it until there is large scale testing in the US.
Posted on 3/4/20 at 9:45 pm to Dawgfanman
I was thinking either that or post earnings. DAL reports 4/8 and UAL reports 4/14. With the confusion I keep reading on testing, both events may occur at the same time.
Posted on 3/4/20 at 11:33 pm to DabosDynasty
This is a huge risk for airlines. Don’t be shocked to see bankruptcies and consolidation due to people not flying.
If the virus is a nothingburger then you will still have a great buying opportunity over the summer imo. DAL would be my pick... it’s the only one I haven’t had a bad experience with.
If the virus is a nothingburger then you will still have a great buying opportunity over the summer imo. DAL would be my pick... it’s the only one I haven’t had a bad experience with.
Posted on 3/4/20 at 11:49 pm to DabosDynasty
July when this bug peaks?
Posted on 3/5/20 at 5:41 am to ProbyOne
quote:
This is a huge risk for airlines. Don’t be shocked to see bankruptcies and consolidation due to people not flying.
Very possible and I think DAL and UAL are in the best positions to absorb another airline. Both have significant cash on hand and strong existing networks. I looked in to American (AAL) as a possible buy at some point here and got a little nervous about their financials. American could be a major domino that falls to DAL or UAL other than the more obvious of a smaller airline not being able to handle the cash crunch.
This post was edited on 3/5/20 at 5:42 am
Posted on 3/5/20 at 5:49 am to DabosDynasty
quote:About the same time we start buying cruiselines again. Industry damage remains to be seen. But I don't see it as fully written in to pricing yet.
So when are we buying airline stocks?
Posted on 3/5/20 at 5:59 am to NC_Tigah
quote:
cruiselines
I bought Carnival stock on 2010 for $29 a share to get the shareholder benefit per cruise. I've since cruised enough to get the $2900 back (100 shares). CCL stock rose as high as $65 or so a share 2 years ago, now it's back to 2010 levels.
Posted on 3/5/20 at 6:10 am to kywildcatfanone
Posted on 3/5/20 at 6:11 am to DabosDynasty
I am looking hard at adding to my Southwest Airlines (LUV) holdings. I sold off 30 % of my shares at $58 just a couple weeks ago. I'm in at $37 currently.
SWA his taking about the same hit as the carriers with a significant portion of their business flying to asia/europe.
SWA has no presence in those markets.
SWA his taking about the same hit as the carriers with a significant portion of their business flying to asia/europe.
SWA has no presence in those markets.
Posted on 3/5/20 at 6:20 am to cuyahoga tiger
quote:
I am looking hard at adding to my Southwest Airlines (LUV) holdings. I sold off 30 % of my shares at $58 just a couple weeks ago. I'm in at $37 currently.
Posted on 3/5/20 at 7:35 am to cuyahoga tiger
quote:
SWA his taking about the same hit as the carriers with a significant portion of their business flying to asia/europe.
SWA has no presence in those markets.
I have a moderate size position in southwest already, and was thinking about adding spirit (sav) due to the reasoning above.
Posted on 3/5/20 at 8:16 am to 632627
Southwest just warned this could cost them up to $300 mill in Q1. These are the kinds of announcements I wanted to come through before opening a position. Interested in the same announcements from the other airlines.
To be clear, not criticizing anyone’s position/feelings on SW just sharing the info for those interested. I’m certain other announcements will follow from the other airlines.
To be clear, not criticizing anyone’s position/feelings on SW just sharing the info for those interested. I’m certain other announcements will follow from the other airlines.
Posted on 3/5/20 at 8:42 am to kywildcatfanone
quote:With the new Cruise ship outbreak, another Princess cruise, they'll drop further.
CCL stock rose as high as $65 or so a share 2 years ago, now it's back to 2010 levels.
Posted on 3/5/20 at 9:00 am to DabosDynasty
That was expected. This is 100% virus reaction. If you have a believe that the virus is short term issue then I believe this is a strong play for a consistently profitable company. Not to mention the lower fuel prices they are experiencing and the Max will return by years end, IMO.
44.27 now, I will wait a little longer. $58-62 by late summer if virus fears languish in summer
44.27 now, I will wait a little longer. $58-62 by late summer if virus fears languish in summer
Posted on 3/5/20 at 9:38 am to cuyahoga tiger
Call me a sucker, but I’m interested in long term investing and not trading, and I can’t help but think in 36, 24 or even 12 months coronavirus will be a distant memory and these cruise and airline stocks will be back to pre-coronavirus valuations.
Posted on 3/5/20 at 10:09 am to NC_Tigah
quote:
With the new Cruise ship outbreak, another Princess cruise, they'll drop further.
Yeah, I think so. And I didn't say what I did about possibly buying, I'm not getting any more, I clearly bought it for the shareholder benefit, but it's interesting to say the least.
I have a cruise booked out of LA next month, now I'm wondering if Princess might cancel it.
Posted on 3/5/20 at 10:20 am to 632627
quote:Absolutely.
in 36, 24 or even 12 months coronavirus will be a distant memory and these cruise and airline stocks will be back to pre-coronavirus valuations.
Posted on 3/5/20 at 11:37 am to NC_Tigah
Any thoughts on Alaska? No exposure internationally but operate heavily on the west coast.
I own LUV but looking to scoop up ALK and DAL at some point.
I own LUV but looking to scoop up ALK and DAL at some point.
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