Good aviation stock to buy ?

[tathepilot]

Seems like I have some extra cash in my pocket. Since I seem to blow my cash on things like 300. sunglasses I might as well try to make some money.
I've had my hands in stock for the past few years but I've never bought anything aviation related.

Any suggestions ?

thx

 

[mattpilot]

DAL

 

[nosewheel]

DON'T !!!!!!!!!!!

 

[350DRIVER]

US AIRWAYS


good luck

3 5 0

 

[Propsync]

Are you kidding? If you want to invest your money in aviation, consider these two/three options:

1. Burn your money.

2. All on black on the table.

3. (optional) hookers.

I vote for #3.

 

[NuGuy]

Hi all,

Good aviation businesses to invest in:

Aviation bankruptcy firms
Aircraft Repo/chop shop
Cement/paving companies with airport contracts
Furniture movers (see first item)
Aviation Executive relocation services

That's just to start...

Best,
Nu

 

[JB74]

I am sure some will disagree, but speaking from a financial standpoint, Mesa is a decent airline stock (if there is such a thing) if you bought in the $5-$8 range. Check out their financials.

 

[FracCapt]

Give your money to me. I'll tell you about all the fun I had with it. Trust me, it's a better investment than most airline stocks right now.

 

[flyer172r]

Don't invest in aviation, especially not an airline.

 

[English]

Hawaiian's stock has increased 1000% in the last 52 weeks.




Motley Fool
Red-Hot Airline Stock
Tuesday June 15, 2:46 pm ET
By W.D. Crotty

When you think of a hot airline stock, JetBlue's (Nasdaq: JBLU - News) mid-2003 explosion in price may come to mind. Well, bankruptcy-court-protected Hawaiian Airlines has made its parent company, Hawaiian Holdings (AMEX: HA - News), a red-hot stock now.

ADVERTISEMENT

About that stock symbol, finally, shareholders are laughing. The highflying stock is up 17.2% today and up more than 1,000% during the last 52 weeks.

What is fueling this explosive rise is -- you guessed it -- profitability. The company was the U.S.'s third-most profitable airline in 2003. It is also the nation's No. 1 on-time carrier. That is a great one-two combination.

Light traffic during the first quarter challenges all airlines. Last year's first quarter was the knockout blow that sent Hawaiian to bankruptcy court. This year the company fought back to post a first-quarter net profit of $8.3 million.

The company's March operating margin of 9.5% is out of the reach of rivals American (NYSE: AMR - News) and Delta (NYSE: DAL - News) and tops the 8% annual operating margin at Southwest Airlines (NYSE: LUV - News). Life is good in the land of swaying palms.

Bankruptcy court is no guarantee for success. United Airlines has made the trip and never approached the success Hawaiian is enjoying.

What sent the stock soaring today was the announcement that 10 million shares (35%) of the company's stock was sold by its controlling shareholder to an investor group. As part of the transaction, the chairman and CEO of the holding company and two directors resigned.

New ownership and leadership at the holding company does not signal that the final financial structure for the airline is in view. Boeing (NYSE: BA - News), one of company's largest creditors, and others have until July 29 to file reorganization plans. Even then, it will be October before the reorganization plan is finalized. A red-hot stock is fine -- when you own it. With so much uncertainly surrounding the final financial and equity structure of Hawaiian Airlines, buying Hawaiian Holdings takes a leap of faith -- one without financial measures to assess future risk. Buying the company now may be the financial equivalent of taking a swan dive into a pit of red-hot coals.

 

[typhoonpilot]

I'm thinking about a gamble on DAL as they get closer and closer to bankruptcy. If they can make a deal with the pilots and the suppliers and avoid bankruptcy it will be a good stock to rebound, much like AMR did. The big question then becomes timing, when will be the right time ( or price ) to buy ? After they report second quarter losses and show a detiorating cash position might be the right time. Any ideas General ?

Typhoonpilot

 

[Bandit60]

I'm thinking about a gamble on DAL as they get closer and closer to bankruptcy. If they can make a deal with the pilots and the suppliers and avoid bankruptcy it will be a good stock to rebound, much like AMR did. The big question then becomes timing, when will be the right time ( or price ) to buy ? After they report second quarter losses and show a detiorating cash position might be the right time. Any ideas General ?

Typhoonpilot

My suggestion on this is to stop smoking what your are smoking. (just kidding with you) It is a really big risk.

 

[tathepilot]

quote:
Hawaiian's stock has increased 1000% in the last 52 weeks.

Well, what is the name of the airline ?
nasdaq?
nyse?
symbol?

 

[L.Skywalker]

i made great money in hawaiian(HAL)rode it from just under a buck- fifty to a little over three. I'm long United now(UALAQ) at 1.13. Think we'll see another American?(AMR)

 

[typhoonpilot]

Being long United makes no sense, one of the things that will happen when they exit bankruptcy is the stock will be wiped out. The DAL gamble is just that, a gamble. It worked for those that bought AMR at $3.00 per share but that doesn't mean it will work again.

Typhoonpilot

 

[Tripower455]

Buy real estate, a classic muscle car, a '59 Les Paul etc.........

 

[L.Skywalker]

dude, all stock pics are a gamble, and isn't hawaiian still in chapt. 11? the gamble in ual is which way the judge will rule. don't assume for a second that he'll just simply invalidate the common equity. it may happen, but if he doesn't then you could be looking at something like a twelve dollar stock on enterprise value.

 

[mattpilot]

uhm... doesn't trading stop if a company is in Chapter 11? So you can't buy UAL anyway.

 

[Flic1]

uhm... doesn't trading stop if a company is in Chapter 11? So you can't buy UAL anyway.

Companies still trade in Chapter 11. You can easily recognize a stock in Ch 11 because it has a big 'Q' added to it's symbol (UALAQ). Unfortunately, the stock becomes worthless when it exits bankruptcy. Common stock is the first thing to get liquidated to pay off creditors. This happened to US Airways and they later reissued new shares, but if you owned the shares that become worthless, you will not get any of the new shares issued. It's possible to ride the short term fluctuations in a bankrupt companies stock, but don't hold long term!

 

[amaineiac]

Easy money, short AMR.