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Airline stocks,good buy ?

  • 15-01-2021 9:43pm
    #1
    Registered Users Posts: 787 ✭✭✭ richie123


    With airlines on the floor and some flirting with bankruptcy bar the likes of Ryanair,(who's share price hardly moved)what's yer thoughts on buying and on what airline stocks to buy?

    Interesting to note the most famous investor of all warren buffet dumped all his airline stock exposure a few months back if memory serves me right.
    What happened to all the buy when others are fearfull malarky ?


Comments

  • Registered Users Posts: 7,502 ✭✭✭ Outkast_IRE


    Have some iag shares alright as a medium term hold .


  • Registered Users Posts: 14 Green Penguin


    Ryanair gone from 8 back up to 16ish, imagine a lot of the short/medium term profits have been made, could do OK longer term but youre always sure a few surprises along the way!


  • Registered Users Posts: 907 ✭✭✭ Irishder


    i have a small number of American Airlines, got in at 12 about around 16 now. Will get it out at around 20 hopefully


  • Registered Users Posts: 787 ✭✭✭ richie123


    Have some iag shares alright as a medium term hold .

    Can you suggest any riskier stocks with a better chance of pulling out of this downturn and better upside potential re shareprice ?


  • Registered Users Posts: 787 ✭✭✭ richie123


    Irishder wrote: »
    i have a small number of American Airlines, got in at 12 about around 16 now. Will get it out at around 20 hopefully

    When did you purchase ?


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  • Closed Accounts Posts: 204 ✭✭ Chuckie_Egg


    I think Travel operators and hotel groups will give much higher returns once covid is behind us. Airlines are ok but some of them were in a bit of a mess even before Covid, Ryanair will still do well from here and will be out of the blocks quickly to mop up as much as they can, so I don't think there share price is done yet.
    I bought some Lastminute.com (SWX: LMN) in December . Price hasn't really moved since, still trading around 25CHF. I'm current looking a Carnival Corp. (CCL) and Royal Caribbean Group (RCL), haven't pulled the trigger yet I think they'll pull back another bit in the next few weeks.


  • Registered Users Posts: 787 ✭✭✭ richie123


    I think Travel operators and hotel groups will give much higher returns once covid is behind us. Airlines are ok but some of them were in a bit of a mess even before Covid, Ryanair will still do well from here and will be out of the blocks quickly to mop up as much as they can, so I don't think there share price is done yet.
    I bought some Lastminute.com (SWX: LMN) in December . Price hasn't really moved since, still trading around 25CHF. I'm current looking a Carnival Corp. (CCL) and Royal Caribbean Group (RCL), haven't pulled the trigger yet I think they'll pull back another bit in the next few weeks.
    Or cruise liner companies ?is that royal Caribbean?
    Also what do you mean by 25 CHF?


  • Closed Accounts Posts: 204 ✭✭ Chuckie_Egg


    richie123 wrote: »
    Or cruise liner companies ?is that royal Caribbean?
    Also what do you mean by 25 CHF?
    Yes Cruise liners, (I class them in the same bracket as Luxury hotels)

    and 25CHF = swiss francs as they are a Swiss company


  • Registered Users Posts: 787 ✭✭✭ richie123


    Yes Cruise liners, (I class them in the same bracket as Luxury hotels)

    and 25CHF = swiss francs as they are a Swiss company

    Have you done much research on royal Caribbean?will they pull out of this pandemic I wonder.its sounds like a risky play I'd chance a few pound on :)


  • Registered Users Posts: 72,876 ✭✭✭✭ Atlantic Dawn


    richie123 wrote: »
    Have you done much research on royal Caribbean?will they pull out of this pandemic I wonder.its sounds like a risky play I'd chance a few pound on :)


    Carnival has nearly 50% of cruise business worldwide, Royal Caribbean about 20%. There's apparently $60billion worth of orders for new cruise ships globally at the moment. Pre Covid the cost of a ship would be recovered in 5-6 years, a ship lasts 20-30 years. 30 million people went on a cruise in 2019. Carnival is supposed to be losing $650million a month at the moment. I can see operators insisting on all passengers boarding being vaccinated, that should in theory present an attractive product for people.

    Here's a list of orders...
    https://www.cruiseindustrynews.com/cruise-news/cruise-ship-orderbook.html


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  • Registered Users Posts: 787 ✭✭✭ richie123


    Carnival has nearly 50% of cruise business worldwide, Royal Caribbean about 20%. There's apparently $60billion worth of orders for new cruise ships globally at the moment. Pre Covid the cost of a ship would be recovered in 5-6 years, a ship lasts 20-30 years. 30 million people went on a cruise in 2019. Carnival is supposed to be losing $650million a month at the moment. I can see operators insisting on all passengers boarding being vaccinated, that should in theory present an attractive product for people.

    Here's a list of orders...
    https://www.cruiseindustrynews.com/cruise-news/cruise-ship-orderbook.html

    Looked up the share price ...6 months ago was the time to buy them as they were down near 40
    euro,up to 72 now but still.
    At 650 million a month loss what's the chances they go under?suppose that's the million dollar question.


  • Registered Users Posts: 787 ✭✭✭ richie123


    LM is worth a shot too I think.


  • Closed Accounts Posts: 204 ✭✭ Chuckie_Egg


    All about risk, and yes Carnival has risk and may not even reward that much for a few years.
    LM will make quicker returns as they do not have huge sg&a costs so they can be in profit a lot quicker.
    Either way take your time and do plenty research, your funds don't have to be spent straight away and not all on the one company


  • Registered Users Posts: 12,289 ✭✭✭✭ Mad_maxx


    a famously bad sector for losing money , Ryanair is the exception rather than the rule

    Ryanair is the best choice though stock a little high right now


  • Registered Users Posts: 7,502 ✭✭✭ Outkast_IRE


    Personally wouldn't go near cruise ships myself , floating Petri dishes at the best of times . They will need to sell at rock bottom prices for years to entice anyone back


  • Registered Users Posts: 787 ✭✭✭ richie123


    Mad_maxx wrote: »
    a famously bad sector for losing money , Ryanair is the exception rather than the rule

    Ryanair is the best choice though stock a little high right now

    I already hold Ryanair stock though, surely must be a few badly performing airlines with cash in the bank similar to Ryanair ?


  • Registered Users Posts: 787 ✭✭✭ richie123


    Personally wouldn't go near cruise ships myself , floating Petri dishes at the best of times . They will need to sell at rock bottom prices for years to entice anyone back

    You buy when everyone else is fearfull..unless this pandemic goes on for years ...that's the chance you take


  • Registered Users Posts: 12,289 ✭✭✭✭ Mad_maxx


    richie123 wrote: »
    You buy when everyone else is fearfull..unless this pandemic goes on for years ...that's the chance you take

    cruise ship stocks have quadrupled since last March , still way below peak but i would not buy now , they are at best a trade


  • Registered Users Posts: 242 ✭✭ hottipper


    Im in IAG not a big position small percentage of my portfolio happy to hold it and not really following any news about it or looking at any charts. Its a recovery play should recover eventually, easier money to be got else where but good to have a few recovery plays i think.
    Early results out of Israel indicating a 36% drop in infection rates after 2 weeks with the first dose. The vaccines are working:
    https://www.wsj.com/articles/israel-vaccine-data-suggests-decrease-in-covid-19-infection-rate-after-first-dose-11610658607


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