Wednesday, November 22, 2006

Hype in the Airline Industry; Delta and Northwest Airlines

So I bought NWA at 60 cents a share a while ago. Thinking I might be able to trade between the ebb and the flow of its amplitude. Then US Air makes an $8 billion bid for Delta, boosting NWA's price up. I sold at $2.40 banking a tidy profit and a personal record 400% return in 7 months.



Now, people would say, "hey, if there's talk of buy outs, why not hold on? If NWA posts a profit, if the unions back off, if the price of gas stays low, if if if if if..."

All fine and dandy, but to all my colleague toying around with the idea that NWA (as well as Delta) might be worth the buy, you might want to consider this first;



Bulls win. Bears win. Pigs get slaughtered.

3 comments:

Paul E. Zimmerman said...

Exactly why I place protective stops under all of my trades as soon as I'm in, then move them up to lock in gains as my winners run. Learned the hard way, naturally...

What do you think of trailing stops? Ever used them?

BradMan said...

And where was the stock tip to buy at $0.60...

Um that would be a good reason to continue to come and read your blog...

-Brad

Captain Capitalism said...

Hi Paul,

Don't usually employ them. I teach a class on stock valuation, but it's from a fundamental analysis point of view, not really a trader. I do use stop limit orders thoguh, however most of my investing is done in real estate.

BRad,

Cripes, offer a stock recommendation? I could see the litigation line up if the price dropped to $.40 per share.