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Novice stock question

Posted on 3/9/20 at 9:14 am
Posted by dallastiger55
Jennings, LA
Member since Jan 2010
27733 posts
Posted on 3/9/20 at 9:14 am
On days and weeks like what we’ve been experiencing why wouldn’t I just go buy airline and oil stocks?

Those companies aren’t going bankrupt and will bounce back, right?

Why wouldn’t I buy ConocoPhillips and AA/Delta right now?
Posted by UpstairsComputer
Prairieville
Member since Jan 2017
1576 posts
Posted on 3/9/20 at 9:18 am to
I'm with you on the major oil players. Airlines go bankrupt and restructure every cycle though. Good luck!
Posted by DawgCountry
Great State of GA
Member since Sep 2012
30557 posts
Posted on 3/9/20 at 9:19 am to
you should #buythedipsbaw
Posted by DabosDynasty
Member since Apr 2017
5179 posts
Posted on 3/9/20 at 9:23 am to
Also a novice, but I’m with you just not in this very moment because I believe more losses are coming.

Personally I think AA is in a terrible position for this with their massive debt load especially compared to their peers. Southwest has a great debt position with respect to their cash and income. Delta is solid, but southwest is the stronger company financially.

With oil and gas that sector has been terrible for a while and just got worse. I agree with the thinking and a company like XOM offers a sweet dividend, but I worry that sweet dividend gets cut with reducing cash flows for some currently unknown period of time and that will further erode stock price and slash your yield.

I am cautiously watching, but I’m watching what you’re watching among other plays.
Posted by TigerDeBaiter
Member since Dec 2010
10267 posts
Posted on 3/9/20 at 9:24 am to
Because there is a risk. But that’s also why you could be rewarded. I’m buying oil names today.
Posted by Bone06
USA
Member since Feb 2008
1878 posts
Posted on 3/9/20 at 9:28 am to
quote:

On days and weeks like what we’ve been experiencing why wouldn’t I just go buy airline and oil stocks?

Those companies aren’t going bankrupt and will bounce back, right?

Why wouldn’t I buy ConocoPhillips and AA/Delta right now?


Because the stock market is bad and you should spend your money on boats, cars, and 4 wheelers.

Seriously though if you have extra money that won't put you in a bind with bills for the next few months. Buy away. The stocks you mentioned will be beat up until the virus thing starts to calm down but will come back to a sensible valuation. You can ask someone who knows stock values what stocks you are interested in should be valued at and see where you want to get in at. Ask someone with more than 15 years of valuing stocks. If you don't know someone pay financial adviser or stock broker for an hour of their time to discuss the stocks you like.
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