Jim Rogers, Bullish on Airlines

Quote from OldTrader:

I guess when you think he's mistaken, what you would do is go short! Then again, he's got a long record of being right...how's your record?

OldTrader
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Laugh out loud, OldTrader, good one , however;
here is another way to look on it like maybe cashmoney.

Actually continuing that fun question you asked; Cashmonry;
dont have a long track recoed on long stock-airlines and dont want one.

However do like to fly AMR[still have frequent flyer miles], Delta,;
and LFL has had some fine uptrends, all have great customer service. I am perfectly content to read about Steve Cohens hedge fund [SAC] long airline stock positions , if my memory serves me correctly,without taking any long airline stock.myself:p

Hey I am admitting to enjoy airline food also:D
 
Quote from BlueHorseshoe:

Actually, he said this a bit over a year ago while visiting Singapore. I was shocked and thought he might be off his rocker at the time. Not sure if he is necessarily still bullish on airlines, but he's certainly done well with that call over the last ~18 months.
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great remark
 
Quote from Pabst:

I would argue that airline tickets are a commodity. There's only so many "seats" being produced. The consolidation throughout the industry post 9/11 has left several carriers who are getting rich.

High fuel costs have been offset by record business. It's cheaper to fly than drive and of course more productive also.

For 70 years investors have wondered when this industry would have sustained profitability. That day's here......
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Pabst;
Probably right.

Perfectly content to look at the 70 years of mostly downtrends;
and go long/short ES- emini some, rather than airline stocks.

No wonder some buy thier bonds;
ailines like LFL, AMR, Delta have great customer service ,food., fun way to travel......:cool:
 
Quote from cashmoney69:

You dont have to have a record to have an opinion.
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if that isn't the truth. the world is full of alot more people with opinions than with track records.

you must have been watching jim rogers on cnbc on sunday. was it just a coincidence that you started this thread on the same day?
 
Quote from Pabst:

I would argue that airline tickets are a commodity. There's only so many "seats" being produced. The consolidation throughout the industry post 9/11 has left several carriers who are getting rich.

High fuel costs have been offset by record business. It's cheaper to fly than drive and of course more productive also.

For 70 years investors have wondered when this industry would have sustained profitability. That day's here......
More...

I'll take the other side:p having both worked for an airline (CAL) and both long 2001-2003 and currently short (put calendar). Airlines at least in this country will never consistently make money. They are probably the most labor intensive/capital intensive industry there is. Using 9/11 (perhaps justifiably) they have cut wages to the bone and on top of that have made non-rev travel hard to come by...which is a BIG perk. IF they start to make money you are going to see the natives restless and wage pressure will rise.
That , the continued high cost of oil , and stiff competition keeping seats cheap will keep the profit lid tightly sealed. JMO
 
I think most people forget that a long time ago in a galaxy far away, Rogers began life as a stellar stock analyst at Arnold Bleichroeder with an attention to detail.

He wasn't always a guy in a bow tie on TV giving sound bites and making attention grabbing predictions.

If he's buying airlines, I think it's a safe bet to say he's done a lot of homework on the matter - a lot more than the average ET poster at any rate, before coming to that conclusion.
 
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