Airline Stocks?

[Jason]

I like the airline stocks as a long term play. I think they are all a bargain right now.

Along with the casino stocks mentioned previously, sports betting sites are bargain right now. No sports, no revenue. How long do you think that will last?

[ramrod]

I don't think airlines will give anymore of a return than other stocks will. You really need to do your homework in lieu of just guessing. For example American has already filed for bankruptcy before. All of their employees have been working without a contract for several years, because their union can't agree on anything. It is the most volatile airline in my opion.

[dclifton]

Several large O&G companies are a buy to right now. Look at Halliburton its at $4 ish. it was in the mid 20s prior to this. Halliburton wont go anywhere either it just may take 6months to a year for it to go back up to $20 a share

[whitetailtrail]

Nobody can definitely answer the questions you’re asking. It’s speculation at this point


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[kparker158]

Several large O&G companies are a buy to right now. Look at Halliburton its at $4 ish. it was in the mid 20s prior to this. Halliburton wont go anywhere either it just may take 6months to a year for it to go back up to $20 a share

Halliburton hasn’t turned a profit in over 7 years. Eventually the plug will be pulled. Research where the funding for all these operations are coming from.

[Acameron52]

Oil & Gas is good right now too!

[rut-ro]

Boeing is a good deal

[Gunnyart]

Delta will be in a better position IMO because they are mostly non union and will be able to react more easily.

[GarGuy]

In scared of the big airlines. Talk of federal buyout. I saw what happened with general motors when the fed bought it out. Stock holders lost their life savings.

[HogCommander]

I'm watching airline stocks too but think they'll drop more so I'm waiting for now. I'm not a financial pro but will offer my thoughts for what they're worth:

1. How much more downside is left?
No one knows. I'm using stock prices from Feb 2009 as a yardstick for lack of anything better. That crash was different of course but was the most recent major crash connected to a global recession.

2. What criteria would you use to pick between Southwest, American Airlines and Delta?
Again, I'm not a pro but I look at Market Cap as an indicator of a company's ability to absorb a big hit. In other words, I feel like investing in a $5B company is less risky than investing in a $500M company.

I also compared low prices from 1 Feb 09 to prices as of 1 Jan 20...my thinking was that the delta between the two data points was an indicator of potential return. This of course was based on the belief that the airlines will eventually recover. Based on these criteria, I'm watching United, Delta and American in that order.

3. Will the stimulus deal signed overnight maintain them or send them back up?
Personal opinion is that stimulus will push airline stocks up temporarily but they're likely to fall again, especially when they report devastating quarterly earnings. I think stimulus will keep the airline companies alive but the real indicator for investors is fear among people/businesses who buy airline tickets. When the fear recedes, that's when I think shares will rise rapidly.

For what it's worth, I'm also watching casino stocks and agree that Las Vegas will recover rapidly once people are traveling again. That said, today's prices are a long way from their 2009 lows which affects potential return. The ones I'm watching are Las Vegas Sands, Vail Resorts and MGM.

[nchunter]

With a prepackaged bankruptcy and bailout, your stock pick could go to 0. That happened to GM. I wouldn't touch unless its gambling money

[hooligan]

I'm watching expedia right now if at $40ish I think it's a good buy. Once everything levels out and gets back to normal it'll be back to where it was at $140+

[DaddyO]

With a prepackaged bankruptcy and bailout, your stock pick could go to 0. That happened to GM. I wouldn't touch unless its gambling money

Is this what happened to Citigroup about 13 years back?

[jlp04c]

I dont think its safe to say any of these stocks will "go back" to where they were... I'm looking at companies that are cash heavy.. they may be the only ones to weather this storm. This is going to get super nasty IMO.

Earnings for alot of these companies whose stocks are super cheap right now will confirm, and indeed the stock will drop even more. Or at least, thats what make the most sense to me.

[OldRiverRat]

if airlines i'd have to go with Southwest. They will recover faster in my opinion and they have never filed for bankruptcy so you have to feel better about their management.