Airline stocks

Discussion in 'Trading' started by pumpanddumper, Apr 22, 2008.

  1. In regards to the thread up top, lets get some tickers here so I can track. They look like good trades still in both directions and juicy and volatile for good scalps for day trades.

    These baby's can move on you name it, merger rumors, bk rumors, oil going down and them moving up and should see increased activity. These should be treated just like the financials, homebuilders, solar,etc or most stocks in general.
  2. S2007S


    If oil were to drop back to an even $100 the airline index would probably trade up 20-30%....

    Im in AMR and will be buying small amounts of other airlines over the next couple of weeks....
  3. I just stepped out and realized it just got lumped in the same section, my bad.:(
  4. The last significant low was in 2004 at 6.34. Before that was in 2002-2003 I believe somewhere around 3 dollars (AMR).

    If AMR cant hold in the 6s, then it will probably retest the old lows.

    The AMEX Airline index $XAL has lost all support by the way. I can't find any support on that chart.

    If I were to go long airline stocks, then I would long the following. Basically a mix of lower&higher quality small-mid-large cap airline stocks:


    My opinion is that we will probably see lower prices in the future and to wait for at least some type of uptrend before going long.
  5. AAI and LUV.
  6. UAUA, LCC....there probably won"t be much juice in the arb, but DAL and NWA are the 2 merging.
  7. Anyone have an opinion on PNCL? Just glancing at it it looks like it might be a good bet.

    ETA: Okay, doing my DD now and seeing the big risks associated with it. It's basically married to NWA for all of its business it seems.
  8. With DAL at $6.80 and NWA shareholders getting 1.25 shares of DAL in the merger deal that would currently mean $8.50 worth of DAL. Since NWA is only at $7.47 there is about $1.03 in the spread. Buy 1 NWA and short 1.25 shares of DAL. If you don't want to play the spread, just go long NWA when it's running up.
  9. How about short 'em both (i am) if the deal doesn't get approved, they both go straight to 0.
  10. they aren't going to get a ton of synergies out of the merger in the first place. that is the other reason (outside of oil) that these stocks are taking a beating. there just isn't much these companies can do with a broken business model.
    #10     Apr 23, 2008