Thoughts on American Airlines?

I have LUV at 13. It got up close to 60 but took a little hit with the virus.

What's that got to do with AA?

My fear with the airlines is the virus is just starting to effect them. It's a gamble that I'm not comfortable with, but the airlines industry is just like railroad, trucking, automobile, etc....the government won't let it fail as a whole. That's a long way of saying....to risky for me.

Plant manager I use to work with use to talk about buying AA back when they were looking at Chapter 11. We kicked ourselves for years for not buying it. Hold off until this virus thing has run it's course. I dumped some more stock today, Chevron. Headwinds for oil are strong right now. I will cover my losses when it turns. Holding more cash and gold right now than I normally do.

Airlines are going to continue to drop until things stabilize. The daily operating costs for airlines is huge and when they take a 20% hit to their load factors, they start bleeding money. Until people start flying internationally again, they will continue to slide. Also, don't forget about oil prices. If this causes oil to go up, the airlines will take a double whammy to their bottom lines.

Remember the old saying, how do you get 1B in the airline business, start with 10B

I would be looking at Southwest....

What's that got to do with AA?

/quote]

Same industry. Both taking a hit from the travel restrictions. Look it up.

The VIX touched 54 today,highest its been since the '08 meltdown. Only thing up today were TONS of bear ETFs. Doesn't portend well for the short-term outlook.

Till holding onto cash.

Excellent update Oxbot. We appreciate the info

Never a fan of airline stocks.

Get bent you old condescending prick.

IBTL

Its been a roller coaster ride for me but always payed good dividends.

Dividends not that good.

They were at eleven dollars. The percentage goes down as the price goes up.

I never was good at Monopoly. Never did get my $200 either dang it