It's been weak when other airlines have rallied. I don't believe the fakeout rally. I think they're in real trouble and when the broader market tanks in a few weeks to months, AAL will be the first to take legs down.
Stock_Holiday86
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@KthiG, curious to hear your thoughts on your argument that AAL has been rallying weaker then the rest of the airlines. Since you commented that and since this idea was posted, AAL showed a lot of strength. It clearly was ready to make a move up. You still believe this stock is weak and heading much lower?
KthiG
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@Stock_Holiday86, Everything moved up by large margins over the past week. This means that the move probably wasn’t intrinsic to AAL, but rather broader measures such as the fed response which has been significant. If you see my prior comment, my timeline is weeks to months. Stocks moving up with no intrinsic reason are bound to head lower, especially as we move into earnings season.
@KthiG, what are your thoughts on airliners these days?
KthiG
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@Stock_Holiday86, my comments still stand as I see it. I don’t feel that airlines are a good stock to hold for the long term, which is what I said almost two months ago. Additionally, AAL tanked for a few weeks after my comments. I didn’t find it necessary to come on TV and gloat.
For some, airlines might be a great play and clearly the last 2 days were excellent if you were holding.
However, I think it’s one of the riskiest bets in this market moving forward. A great week or so doesn’t make it a great stock.
AAL in particular just had its credit downgrades to B-.
Stock_Holiday86
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@KthiG, I’m only asking because I am completely out now as of today. Not trying to gloat. Thanks again for your input.