Airline stocks - Ferrari Life
 
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post #1 of 11 Old 12-21-2005, 09:20 PM Thread Starter
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Airline stocks

All the major US air carriers are in trouble and filing for bankruptcy. The hurricanes this year had a devastating affect on their business. All the stock analysts and professionals all say steer clear of this stuff, get out while you can. They're down under $1 per share. I'm thinking, "Well, they can't all go away." and against professional advice, I bought a bunch of Delta, United and Northwest Airline stock.

What do you think? I didn't invest anything I can't afford to lose and I'm thinking it will either go up or go away.

BTW - I'm new to the stock market, The only stocks I've had before are the ones my company gave me.

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post #2 of 11 Old 12-21-2005, 09:43 PM
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All of these airlines are currently in bankruptcy. While the stock is still trading it is not likely to hold much value. In almost all cases current shareholders are wiped out when the company emerges from the bankruptcy proceedings. Several airlines that are not currently operating under court protection are American Ailines, Jet Blue, and Southwest.
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post #3 of 11 Old 12-21-2005, 10:01 PM Thread Starter
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Yeah, I looked at those also. Continental is doing quite well and seems like a good buy but it is currently $20 per share (compared to the $15 it was a month ago when I first looked at it, damn.) But I thought if I'm going to gamble, gamble big. Go for the underdog. If only one of those airlines I invested in goes over $3, the other two can go away.

If they all crap out, oh well, roll the dice again. Like I said, I didn't gamble anything I can't afford to lose. We're not talking millions of dollars here.

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post #4 of 11 Old 12-22-2005, 10:45 AM
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Quote:
Originally Posted by Pete04222
If they all crap out, oh well, roll the dice again. Like I said, I didn't gamble anything I can't afford to lose. We're not talking millions of dollars here.
The key here is that you realize you are gambling with investing the way you are. However, you should probably consider diversifying more. No point in just throwing money away at bad stocks.
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post #5 of 11 Old 12-22-2005, 11:06 AM
 
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well it is a big gamble, but if it works you will make a lot of money. You pay next to nothing now, but if they go back up it will go relatively fast. If you want to make quick money you need to buy them at the lowest point and hope it goes better later on.
If you go for the long term then you need to find steady companies who are expanding over the years.
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post #6 of 11 Old 11-24-2006, 08:30 PM Thread Starter
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Here's an update. Last December I bought a bunch of Northwest stock for $0.52 and I just now sold it for $3.55. What's that? 680%? Not a bad return. It was a gamble but it worked out and I made a few bucks. I was nervous about it for the past 11 months but now all I can say is I wish I'd put more in.

Oh, where to put the money now? I'm leaning towards oil and gas service companies.

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post #7 of 11 Old 11-25-2006, 06:02 AM
 
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Pete, good job with that one!

But you bought other stocks also, right? Did you make money overall or just that stock?

I´m out of the market right now, because the Brazilian market is high up in the sky

I´ll wait until it drops a little bit and then get back in (I don´t buy stocks, can´t do that... So I have to invest in my bank´s funds)

"When the going gets tough, the tough get going." - J. P. Kennedy
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post #8 of 11 Old 11-25-2006, 07:45 AM Thread Starter
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I had bought some Delta but sold it a month later and didn't lose that much money. The other stocks I have right now are an African gold mining company, a Eurasian oil company, a Peruvian copper mining company and some stupid American website development company that I bought on hype. The gold mining company is doing pretty good for me. The other ones aren't doing so good.

But here's the kicker, I started out almost a year ago with "X" number of dollars, bought all those stocks in 5 different companies, when I sold Northwest Airlines I got my "X" dollars back. So all the stock in those 4 other companies was basically free. I can re-invest my original "X" dollars.

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post #9 of 11 Old 11-25-2006, 09:19 AM
 
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the same thing happened to me, I put some money in a fund a few months ago, then the market went doooooooown, and so I waited a little bit

about 3 weeks ago I got my money back (a little bit more, to be precise), and so I took it out of the variable income fund, and put in a fix income fund

when the market hits bottom again, I´ll put my money there

yeah, I just love capitalism!

"When the going gets tough, the tough get going." - J. P. Kennedy
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post #10 of 11 Old 11-28-2006, 04:13 PM
 
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Quote:
Originally Posted by Pete04222 View Post
The only stocks I've had before are the ones my company gave me.
The only stocks I ever had were from my girlfriend... or is that stockings? Oh well... great laughs in bed though
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post #11 of 11 Old 11-28-2006, 09:22 PM
 
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I had always thought this was a good idea. There would be NO WAY the US or the international traveling industries could function without an airline, so at least ONE of them had to pull through. Its not like you can have a start up comercial airline these days ...


Congrats again pete, looks like you're cashin in all over the place; Capt of the Enterprise, NP article, New House ... life is good ...
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