With Warren Buffett selling all airlines shares, the corona virus, etc., Investing in DAL is high risk/reward. Investing in shares is not like buying a lottery ticket. Imagine buying a farm (land). It's what the land produces over the long term that matters. Could it reach $5 or lower. Pros: 1) Low P/E and Forward P/E, Prices/Sales, Price/Free cash flow ( FCF
) @ 3.66, EPS
this year and expected next year, Gross margin...Cons: It's debt (quick and current ratios), technical performance, EPS
(Quarter and short-term future), Insider selling.
My Battle Plan: Hold and hedge with put options (3+ months out). Also, depending on developments, Average down.