I used to be a stock market analyst for a major brokerage in Asia. Got sick of working 48-hour days without leaving my chair.
usmarine2005 wrote:
I have stock in every industry except for the airlines. I want to buy airline stock, and I am leaning towards JetBlue since it is about $10 per share right now. Anyone agree with buying this stock or should I go with a different airline?
First of all, you have stock in every industry? How is that possible? Yahoo alone lists 215 industries and that doesn't even really break it down.
Second of all, what is your investment philosophy when it comes to stocks? What will make you buy/sell a particular stock?
If your desire is just to add some risk to your portfolio, then I would strongly advise diversifying internationally. For example the S&P 500 (American stocks only) is up about 19% in the past 2 years but the Kospi 100 (Korean stocks only) is up 86% over the same period. If you're after higher returns and able to assume some higher risk, then you gotta start looking internationally.
Third - what's your investment window? Do you watch every day? How often do you pay attention to the company and the markets to evaluate your positions?
It's almost impossible to recommend actions without knowing your methods and preferences. And I can't comment on the fundamentals of the industry or the company itself because I know nothing about recent stuff going on with JetBlue or the airline industry.
In terms of the technicals, if you want to pick up JetBlue I'm not sure now is the best time because it's
up 8% in the past week, leading the sector. That said it is a
sector laggard in the past year so if you think for whatever reason it's going to move, maybe wait for it to come off a bit and then snatch some up.
Edit: If you can, I'd try to find out what's in the latest research report from Lehman Brothers, it looks like
they just upped their rec from marketperform to overweight. Maybe they see something interesting there.
Last edited by The_Shipbuilder (2006-10-17 18:05:32)