DAL 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.
I think we will see a short uptrend before it goes down to 10~
Sinickk
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I see airlines continuing the downward trend from here. They have a lot of challenges ahead. Once the govs. open the borders up, the airlines will still have to figure out how to distance people, which is difficult, since unless the passengers are packed like sardines, airlines don't make profit. Stocks are currently way overvalued for them.
Penguins83
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@Sinnikk, airlines might drop further but if they do then it wouldnt be because they are overvalued. Very silly comment.