Airlines: Buy 'Em While They Are Cheap!

Late on Friday United Airlines (UAUA) traded up $1.40 on triple its normal volume. United was pounded extremely hard like the other major airlines in 2007. During a time of billion dollars for this and that, the total market value of American Airlines (AMR) is about 3 Billion.

Those who want to make serious money should buy 'em while they are cheap! Yes, it takes money to buy and it is nerve racking to buy in the front of all the talk about recession. Investors should remember that the time to buy is when the news is at its worst. The term the Rothschild's used was "buy when there is blood in the streets".

A long list of regional carriers are at risk of bankruptcy. These little carriers made out like bandits until the big boys "rationalized" their business. The "big boys" are now willing to cancel flights that are not profitable. Airline ticket prices will double and double again on long haul flights during the next few years.

Comments

[NutritionFacts:]

Hmm, the problem with buying cheap is that more often than not the cheap get even cheaper. The market is rather fond of punishing those who are 'early'.

2008 Jan 06 09:51 AM

[helplessobs...:]

Down trending stage 4 stocks are dangerous. Buy only the best companies after a severe down trend.

2008 Jan 06 12:49 PM