copenhagenBA

Thankyou all for your replies

im Mid 40s and have a hands on approach to managing my portfolio. Im long BA around 450 and its been painful to hold while you see stocks that perform well whatever the situation, like Amazon/Apple, so even though i’m diversified, it doesn’t pay just to sit on losses. I love BA, i wish the government personally would do more for the aviation industry. From a stock investor as well as a frequent flyer, the Union situation does muddy the stock i feel but i understand workers need looking after as best as possible in these awful times.

DFB_london

One of those is oft purported by the press to only work for itself. And one is reported by FT to be working for IAG on a rights issue- so some might argue it might be very unlikely to be independent minded opinion. The Bloomberg on research accuracy suggests UBS, HSBC or Reburn research might be better.

Chris_G

Oh God I wish I had some courage when it comes to investment...

Ok, who knows what Tesla's going to do...but Netflix and Amazon were obvious plays and could have been bought on the dip...

What else were people going to do during the lockdown for entertainment and shopping...??

That's why I have a comfortable retirement, but with J being just the occasional treat coupled with a stay at an Ibis when I get there...rather than bouncing around the world in F and staying at fancy hotels and resorts...

As for BA's share price...?? Who knows, but for what its worth (& that's not much) I think the vaccine is a red herring...since the virus might mutate and they may or may not discover something that works within 6 months.

After that it'll take years to roll out worldwide and not everyone (including me) is going to want to try out a drug that has been rammed through short cut testing procedures. I'm not an anti vax type, but really...?? Herd immunity will take a decade to achieve.

Of course there's reality...and then there's the stock market. No doubt if a an effective vaccine was announced tomorrow, BA's share price would double.

I don't think there's going to be a second wave in the USA, Brazil etc...just one long endless first wave. As for Europe...we'll play an endless game of "Whack a Mole" dealing with localised flare ups and consequent localised lock downs.

Hardly an investment positive scenario as the summer ends and winter with the flu season starts cooking in the Northern Hemisphere.

Then there's Brexit...a disaster in itself of catastrophic proportions, with Johnson and his crew about to blame Corona for the economic consequences of this appalling folly...

Should have bought Amazon though...obvious now...

Chris

Mike P

I'm with you on the 'sitting on losses' issue. If you have £100K of IAG stock that was worth £220K 6 months ago, there is no point in worrying about the past. You now have an asset worth £100K and the the question is, is that asset going to appreciate, remain at the same level or depreciate further? You then need to look at what else you could invest that money in which might appreciate more quickly than where it is currently.

rockflyertalk

Ok. So I personally think you are more than okay. I thought you were approaching 65 or maybe more. Or possibly in a challenging position that meant you had to pull out.

But no, you’re fine. Hold tight. This question you’ve posed is the same question for pretty much all stocks, no one really knows but ultimately we are the bottom of the market. In 3-9 years time the market will be at its prime again. I was told there’s a recession every 9 years.

Forget Tesla, that’s a wild, one off stock, even Musk thinks it’s always overpriced. It’s risen by $1000, in 3-6 months, that is outrageous. But at the same time the quicker he hits the output targets, the quicker the price rises.

I’m a little jealous as I wish I’d brought at less than £80. It always remind me of a story when I visited a BestBuy 20 years ago and a sales guy told me about a little company called Apple who were offering an awesome integrated DVD/Computer system. Now they are a Trillion dollar company... The lesson I learnt is buy and sit.

golfmad

I agree with you, it's obvious with hindsight. I knew a guy who owned some founder's stock in Intel which he acquired for next to nothing. He sold it for $40,000 and built a lovely pool at his house in Texas. Fast forward a decade and a half and he could have sold it for a 7 figure sum. He was dealing with that quite well though and the pool was very nice

Reetmafreen

HA! Reminds me of my next door neighbor back up in Scotland in the mid 70s. He got a serious promotion from “a little more than just a minion” to top level management position. The board felt that someone in such a senior position should have shares in the company, so he was granted some options that he immediately exercised and bought himself a caravan with the proceeds. A few months later his company was bought out by another company and based on the number of shares that he had been granted, had he still held them, would have made him an instant millionaire. We always referred to that caravan as the million pound caravan!

ReinaDeLaSelva

Senors I am not sure about IAG. Most likely it is a better bet than LX which is heading the same way as Swissair in 2001 lol!

But, it is not the best one in this sector. I am long on FR. Si mira aqui.... NYSE: RYAAY, exactamente! I know this is heresy on this board. But I bought two years ago and even NOW the price is higher than when I bought... surely the only major aviation stock to be worth more now than then. More stock equity even with almost all planes grounded! LOL!
When operations resume at higher level and other EU airlines fail, Senor O Leary is correct that FR will clean up, with ultra low CASM and a unique ability to "weather the storm" with various tactics. Also his service may be the only option for many second-tier EU cities after the CO-pocalypse has triggered failure of many medium-sized airlines. For example SN. The BA board may also experience retrenchment as the services decline and fewer people use or care about EC status.

As for BA especifically I hate LHR T5 but I am sad that LGW appears in terminal decline. I prefer using LGW for many years now and BA used to fly to the most fun places in Europe from LGW like AGP and NAP and I think even SKG. I like BA LGW crews they are nice and friendly not stiffupperlip like some LHR crews.

jonas123

If it softens the blow, you (hopefully) will have participated in the last few years of dividends, which would have returned a significant chunk of your initial investment

DYKWIA

I mate of mine had some Bitcoin which he bought for next to nothing. It had gone up to about £40k when he decided to sell - only to find he'd lost his wallet password. He never did tell his wife...

I think somebody from ITV must have overheard us talking about it as the exact storyline was in Coronation Street about 6 months later

flygod

Think: why did you invest in BA?

Was it for the dividend, was it expecting growth, was it because they owned quite a few aircraft, so had assets? Was it because of their dominant position at LHR? Was it because you fancied an airline stock, and BA was the lucky choice?

Now, think the same things, as if you were still thinking of investing in BA.

Dividend gone, growth prospects gone (just as BA invests in Club Suite), aircraft owned include the 747s, which are now basically scrap. Dominant at LHR remains, but they may lose out to others in Gatwick so as to hold onto LHR slots. There are other airlines stocks - maybe some have better prospects in this new environment?

Personally, I like Ryanair as an investment. Own their aircraft and operate at the basement level. People may not want to fly business long-haul to exotic countries so much, but I am sure they'll be willing to risk cheap weekends away. And some people are tied to holiday property easily accessed by LoCo airlines - is it 450,000 Brits have a holiday home in Spain?

Have I got, or do I plan to have any airline shares - not at the moment. Too much uncertainty not yet priced in. And while airlines might have lots of "assets" - just what are they worth if the entire industry has more cash going out every day than coming in? And no end in sight.

copenhagenBA

Another terrible day for IAG stock after announcing Friday they may raise cash by issuing new shares. Getting somewhat concerned whether they might need a bailout at some point now.

s1362083

EasyJet is down by same amount. I'd think today's move is more down to the Spain restrictions and the implied risks to any travel plans for the near future.

drwook

I'm normally a semi-passive "chuck it in a fund" kinda guy - but genuinely thinking of buying some; still high risk but surely all priced in by now. The upside potential seems good in the medium to long term...

bmibaby737

Bought in at 1.80 - with hope It will bounce back to 2.20 ish in the next few weeks.