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Author: frankhinde Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 919  
Subject: Why oh Why Date: 11/6/2007 12:42 PM
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Did I buy this piece of junk?

36.5% down in only 8months...I knew it, read all the articles about how poor airline stocks are and oil is never going to get cheaper, but I still put 10 grand into it!

JBLU along with SBUX (that should be SUX) are ruining my portfolio!

Frank
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Author: Nuke68 One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 877 of 919
Subject: Re: Why oh Why Date: 11/11/2007 10:46 PM
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With airlines they seem to have a cunning charm about them. No matter how many times I get burned by them, no matter how many times I quote Warren Buffet about not investing in airlines, I can't seem to NOT keep investing in them! Unfortunately airlines are one industry I like and know. I guess hope always springs eternal in the airline investing area!

Author is long JBLU, AAI and LUV!

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Author: SpiffyGuyJoel Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 878 of 919
Subject: Re: Why oh Why Date: 11/12/2007 1:04 AM
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With airlines they seem to have a cunning charm about them. No matter how many times I get burned by them, no matter how many times I quote Warren Buffet about not investing in airlines, I can't seem to NOT keep investing in them! Unfortunately airlines are one industry I like and know. I guess hope always springs eternal in the airline investing area!

Author is long JBLU, AAI and LUV!


There may be money to be made as a trader, but as a long term buy and hold this industry is brutal. More than brutal.

I used to be long Jetblue. I figured they had lower costs and a better product, and that their better product translated into better revenues. Thus if the rest of the industry broke even they would make a tidy profit and I would make a nice gain on my investment.

I was wrong. This industry abhors a profit and every company is willing to sacrifice itself to be sure that no other company runs a profit. If your competition isn't profit motivated you just can't play the game!

As far as being long LUV, I've warned in the recent past on TMF boards that is a bad idea. Their fuel hedges, which will expire one day, are the only thing keeping them profitable. Once oil normalizes for a year or two they will be in the same boat as everybody else. Their long history of profits (amazing in this industry) will be over. Their competition has gotten leaner and meaner.

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Author: SrGuapo Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 879 of 919
Subject: Re: Why oh Why Date: 11/12/2007 8:42 AM
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I used to be long Jetblue. I figured they had lower costs and a better product, and that their better product translated into better revenues. Thus if the rest of the industry broke even they would make a tidy profit and I would make a nice gain on my investment.

I was wrong. This industry abhors a profit and every company is willing to sacrifice itself to be sure that no other company runs a profit. If your competition isn't profit motivated you just can't play the game!


But I don't see how the industry abhors a profit as companies like UAL have been very profitable despite the price of oil.

I guess the part of your argument that doesn't work is the idea that JetBlue really has a better product. It all comes back to what consumers are willing to pay for, and I don't think JetBlue is offering it on the scale they need to in order to be profitable. It will be interesting to see what they do next. Maybe give up and sell to Delta? Who knows.

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Author: Nuke68 One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 880 of 919
Subject: Re: Why oh Why Date: 11/14/2007 8:53 PM
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"There may be money to be made as a trader, but as a long term buy and hold this industry is brutal."

This is true...I think traders are the ones that really drive the airline prices (seeing large swings in the stocks as oil goes up and down or earnings go up or down).

I'm long at this time is that IF oil goes down, the stock prices should go back up. I also believe there is a good opportunity in that it looks as if the airlines are finally being intelligent and cutting back capacity so the smaller guys should do better.

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Author: Videnak Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 881 of 919
Subject: Re: Why oh Why Date: 12/7/2007 11:28 AM
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Couple points to make: the price of oil isn't going down. Not now, not next year. Very likely never. We already had cheaper oil. Now with China and India going industrial the price just cannot go down. There isn't enough enough fields to supply the market.

Secondly, I am personally tired of this stock and my only next investment is going to be PUT option. Despite the fact, that I noted the 5% price increase today.

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