Banks, Airlines and anything related to an automobile

[Port1385]

All of the aforementioned in the subject line are trading at substantial discounts to 2006/2007 prices...DSL was trading at 100 and now in the 7s...FMD...AMR...PTRY...IMB...etc etc etc. Some trading for 5-10 cents on the dollar of what they traded back in 2006/2007

$5000 into any one of these stocks might yield 25000 in one year's time. Then again $5000 might yield zero if any go into bankruptcy. Then again these names might trade sideways to slightly up for an indefenite period of time. days, weeks, years, decades

Indymac looks awfully tempting here in the 1s.


When these stocks do finally turn, if they turn, then we wont hear about them again on elitetrader until they are at their all-time highs. Then we will hear about it and then a few weeks later see a post about someone quitting trading when they crash.

 

[Thermactor]

I'm holding 3500 IMB at 2.023 average. Not the best price but it's impossible to pick a bottom and I have faith in the caretaker gummint bailing banks out.

 

[monstercat]

buy a basket of airline stocks and hold for 2-5 years and i assure you you'll make 200-500%. a few might go to zero but they're $3-$4 now so not far to fall. but many will go from $5 -$50 offsetting 3-5 times over your loses.

 

[frank grimes]

There are a few old sayings on the street, buying stocks because they are 90% off there highs is not how to hit it big. Most of the time you will have to average down, then the real pain starts. These things are not investments, they are trading vehicles. Buy the dips, sell the rips, and watch as most do eventually go to zero.

 

[staffpro]

i just have a question if anyone can answer, most of the airlines problems have been caused by rising oil prices. That said, does jet fuel in other countries such as the ones in Europe cost more than here in the states? (similar to gas prices they are much more expensive there). If this is true than wouldn't American carriers benefit from simply restructuring the way they're airlines operate and make it similar to say Air France or British airways.

Can someone clarify this for me?>

European ones are wat of they're highs but not down 50% on a yearly period like AMR for instance.

 

[Port1385]

I dont know how airlines work in other nations, but here are two things that I do know

1) The price of fuel is subsidized in some other nations.
2) Airlines in America have the toughest unions in the land.

Quote from staffpro:

i just have a question if anyone can answer, most of the airlines problems have been caused by rising oil prices. That said, does jet fuel in other countries such as the ones in Europe cost more than here in the states? (similar to gas prices they are much more expensive there). If this is true than wouldn't American carriers benefit from simply restructuring the way they're airlines operate and make it similar to say Air France or British airways.

Can someone clarify this for me?>

European ones are wat of they're highs but not down 50% on a yearly period like AMR for instance.

 

[stock_trad3r]

Quote from Thermactor:

I'm holding 3500 IMB at 2.023 average. Not the best price but it's impossible to pick a bottom and I have faith in the caretaker gummint bailing banks out.

you should sell it

not going higher

 

[Thermactor]

Quote from stock_trad3r:

you should sell it

not going higher

how are you so sure? their financial freedom division which processes reverse mortgages is worth twice the current market cap of the whole stock

 

[stock_trad3r]

Quote from Thermactor:

how are you so sure? their financial freedom division which processes reverse mortgages is worth twice the current market cap of the whole stock

With millions of shares being traded what makes you think you're the only one who knows this? The stock is what it is, which is dead money. All inormation has been disclosed.

 

[piezoe]

Quote from Thermactor:

I'm holding 3500 IMB at 2.023 average. Not the best price but it's impossible to pick a bottom and I have faith in the caretaker gummint bailing banks out.

See my post on UCBH in the Stocks thread. They closed around 4.88 friday. Have real earnings, now paying over 3% with a P/E about 6. Expanding into China.

I added Sep 5 puts recently to the shares i already own, if they are legit there is no way they should be below $4 come Sept.

From a trading standpoint they have not made a technical bottom and started up. So from a technical standpoint it is too soon to buy.

We are going into a recession and banks don't do well in recessions, so it could be years before UCBH gets back to their old high ($20). Nevertheless for anyone interested in profiting from the bank slaughter, UCBH is worth watching. Particularly since their China and Atlanta operations should be not too badly affected by the recession.