My Airline Stock: Keep or Sell??
- Thread starter Banana
- Start date
it depends
if you are going to hold it 10+ years, keep it
if you don't want to keep it at least 5 years, then sell it, but not at any particular price, sell it so that the loss can be used to offset other taxes (check with your CPA/accountant on how all that works)
hold on, it also depends on which airline you are talking about, if they go out of business, your stock will be worthless, so the above only applies to the "strong" airlines, if this is one of the turkeys, then SELL it ASAP
if you are going to hold it 10+ years, keep it
if you don't want to keep it at least 5 years, then sell it, but not at any particular price, sell it so that the loss can be used to offset other taxes (check with your CPA/accountant on how all that works)
hold on, it also depends on which airline you are talking about, if they go out of business, your stock will be worthless, so the above only applies to the "strong" airlines, if this is one of the turkeys, then SELL it ASAP
GTaudiophile
Lifer
- Oct 24, 2000
- 29,767
- 33
- 81
I own both AirTran and Southwest stock. Southwest hasn't had a losing quarter in like 30+ quarters. As for my AirTran stock, it's gone nutz in the last few weeks!
GTaudiophile
Lifer
- Oct 24, 2000
- 29,767
- 33
- 81
Cashing in? No, not yet! I'm in it for a longer-term. Besides, if Delta declares bankrupty this Fall, my AirTran stock will soar even more.
GTaudiophile
Lifer
- Oct 24, 2000
- 29,767
- 33
- 81
Like them or not, they are expanding their business while the majors struggle (same with JetBlue and Southwest). These small airlines could become the centerpiece of the American airline industry in a few years if things continue to go bad for the majors.
if you're going to hold onto a stock for long term, there are two important questions to ask yourself:
1) how is this sector of the market going to do? In this case, will more people be flying soon? fewer? will that butthead Novgrod's plans for an instant transporter finally pan out? Will there be strict federal regulations put on it? will the pilots' union or mechanics' union screw me over?
2) how is my company going to do compared to the rest of the companies in this sector? Is it Southwest, which has weathered the storm admirably or is it some other, which is really hurting? Is my company already overvalued? Is its price/earnings ratio higher than the rest of the companies listed?
personally, i would answer that the airline industry isn't really a growth one, so unless you have particular reason to believe your company is headed for a bright future, take the money and run.
you never go broke taking profit. You go less broke taking smaller losses. I usually buy a stock and sell as soon as it gets 10% below my purchase price so i'm on the safe side.
1) how is this sector of the market going to do? In this case, will more people be flying soon? fewer? will that butthead Novgrod's plans for an instant transporter finally pan out? Will there be strict federal regulations put on it? will the pilots' union or mechanics' union screw me over?
2) how is my company going to do compared to the rest of the companies in this sector? Is it Southwest, which has weathered the storm admirably or is it some other, which is really hurting? Is my company already overvalued? Is its price/earnings ratio higher than the rest of the companies listed?
personally, i would answer that the airline industry isn't really a growth one, so unless you have particular reason to believe your company is headed for a bright future, take the money and run.
you never go broke taking profit. You go less broke taking smaller losses. I usually buy a stock and sell as soon as it gets 10% below my purchase price so i'm on the safe side.
Here's my philosophy behind this situation.
The stock is so low now that if you cashed out, you wouldn't be at much less of a loss than if you just rode it into the ground. If you're investing in stocks, it's because you can take a loss, so hold on to the stock and hope that it picks up. Somehow, I don't think the government will let the big airlines go out of business.
At the same time, if there's another bailout, and the prices go much higher than 18 (25+), sell.
The stock is so low now that if you cashed out, you wouldn't be at much less of a loss than if you just rode it into the ground. If you're investing in stocks, it's because you can take a loss, so hold on to the stock and hope that it picks up. Somehow, I don't think the government will let the big airlines go out of business.
At the same time, if there's another bailout, and the prices go much higher than 18 (25+), sell.
- Jun 3, 2001
- 3,132
- 23
- 81
Hmm--good points.
I'm leaning towards holding on until it breaks even or better. As Dawg pointed out, selling at a 40% loss is not much improvement over selling at 60% loss (at least for me), and i'll add, especially if there is a hope of improvement. From my limited knowledge, I believe the major airlines will stick around, and Continental is one of the strongest (or should I say, least weak!).
Dawg: " . . . rode it into the ground" is perhaps inappropriate for an AIRLINE stock . . . ;
I'm leaning towards holding on until it breaks even or better. As Dawg pointed out, selling at a 40% loss is not much improvement over selling at 60% loss (at least for me), and i'll add, especially if there is a hope of improvement. From my limited knowledge, I believe the major airlines will stick around, and Continental is one of the strongest (or should I say, least weak!).
Dawg: " . . . rode it into the ground" is perhaps inappropriate for an AIRLINE stock . . . ;
Originally posted by: human2k
This is the worst place to get financial advise.
Some of us do have finance experience...
Credit card debt from too many hot deal forum purchases does not equate to "financial experience."Originally posted by: BDawg
Originally posted by: human2k
This is the worst place to get financial advise.
Some of us do have finance experience...
GTaudiophile
Lifer
- Oct 24, 2000
- 29,767
- 33
- 81
Mine (airline stocks) are doing well b/c I just bought them before the war started. I'm no expert, but I have a great track record. My portfolio is way up in a down market. What else can I say?
Originally posted by: 1YellowPeril
And please identify if your answer was serious or not.
keep it
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