like continental airlines, with the oil price of $126.00 a barrel.
$17.38/share is not a good price ................ maybe its only
worth about $12.50 - 15.00 a share. i think hedge fund people
is holding this in this price ........ but watch out they will dump the price once they have a chance. ..... they will sell it.Why is the airline stock is going up today even the oil goes up to the record high?
Well airline stocks don't necessarly track the price of oil tick for tick every day, although they are highly dependent on fuel costs. They've all been hammered endlessly, so maybe it's just a little relief rally for now. Or it could be merger talk, I've heard rumors of Northwest and Delta merging together.
All that being said they're still pretty bad investments in my opinion.Why is the airline stock is going up today even the oil goes up to the record high?
People invest in stocks to make profit dear. When the prices go up in summer the huge rush or vacation bonanza is high and then they sell it cos its not wise to wait for the price to go done. Then in Christmas time the stocks are between so they buy them then, the demand is high again. SO they can make double profit when in summer. ITS business.
because the price of oil is expected to take a dive from the current levels ...but if the price keeps going higher then the airlines will sink...the airlines have a threshold of something like $130....everytime that threshold is met the sector drops and the stock price reflex the next threshold...that way they dont move with the tick of the price of oil
If the bad news is not as bad as predicted, the stock price will rise. This was seen with finance companies announceing massive losses from sub-prime, but the share price goes up because the predicted loss greater than actual.
I like Hawaiian Holdings Inc which owns Hawaiian Air
bought some a few weeks back at 6.00, to me it's a shot
I think the upside potential is greater than the downside risk
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