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Make some money off airline stocks?

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Otto77

Snacko
Joined
Aug 21, 2005
Posts
361
Just curious if any of you guys out there involved with either Delta or NWA etc have bought some stock up. Its awfully enticing to get some shares of delta as they are 60 cents as of today..pretty much the same for NWA. I truly feel that at least DAL will survive and could stand to make a pretty good sum of money if it even goes up to 5 bucks a share! Just wanted to know what ya'lls take is on the situation.
 
I can't tell if you are flame baiting or whether you really believe what you plan to do.....

take it from someone who has lost more than he has made in airline stocks and has been through an airline BK.

First, DAL and NWAC stock will become worthless. Stockholders are the last ones in line as UNSECURED creditors. IOW's, everyone else gets pennies on the dollar, and the unsecured creditors get even less, if there is any of the pie left.

If you want to buy an airline stock, either save your money in a CD, or buy some LUV, JBLU, Airtran, or even LCC. But for goodness sake, don't buy ANY bankrupt companies stock. You would be better off sending me the money, because you will lose it.

A350
 
true..it is extremely extremely risky and wasnt talking about investing a substantial amount...but I feel in the long run it could perhaps end up with large gains because it is on the floor right now..just throwing out the idea
 
There is no "long run" for a bankrupt companies stock. That's the point! The day Delta emerges from bankruptcy, the stock that you are holding will become worthless, nada, nilch, $0.00. The only people that trade these stock are day traders, etc. moving lots of volume, looking for small movement. It's a game of musical chairs - the day they come out, whomever is holding the stock loses it all.
 
Unless you can get in and out before it becomes worthless, and you have the stomach to do that, you are throwing your money away. If you own ANY airline stock, whatever the company, and have the ability to sell I would sell it ASAP.
 
Delta and NWA (I still think the new paint job is funny!) will, if/when they emerge from bankruptcy, re-issue stock after everyone else is paid IWA the courts rulings. Translation: if you want to buy stock in either of these 2, buy it after they re-emerge from bankruptcy.

Take a look at USAir's stock, re-issued as USair LCC.......

My advice is to hire someone to manage your money.......
 
Otto77 said:
true..it is extremely extremely risky and wasnt talking about investing a substantial amount...but I feel in the long run it could perhaps end up with large gains because it is on the floor right now..just throwing out the idea


Statiscally you have to be better off putting all that money on a number in Vegas.

Its not on the floor, its 6 ft. under the ground as DAL. Wait until it comes back as something else then you can just throw your money away a little slower....

Dont ever buy airline stock.
 
My advice is to donate that penny stock money to Mark's family. They will need it more than you. Just a thought.
 
Otto77 said:
true..it is extremely extremely risky and wasnt talking about investing a substantial amount...but I feel in the long run it could perhaps end up with large gains because it is on the floor right now..just throwing out the idea


Not to beat a dead horse....

The stock will probably be worthless when Delta exits BK. No one tells you this, they just assume you know. Why doesn't it trade near zero? Not sure.

Bonner lost all his money in USAir. UAL (UALAQ.OB) stock will be worth zero too. As UAL exits BK the DIP financiers and the PBGC are getting newly issued stock for the money they pony up. Even if the old stock were worth anything it would be diluted, perhaps with a reverse split, to make sure the newly created stock will be worth much more. The investors that risk financing UAL out of BK demand a big stake in the company. Previous investors are treated like dirt. Even bondholders, who are higher in the food chain, are stratified by the type of bond and often get less than 20 cents on the dollar.

If you wanted to make money bottom fishing I would would have bought AMR stock when they were considering BK. It traded under $2 before shooting up over $10.
 
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