Southwest (LUV) Stock!?

[Indyguy24]

Down from a high in the $60's, Southwest (LUV) seems like a great pick that is trading in the $20's now.

Compared to all their peers, they are in a better spot financially, and almost exclusively specialize in domestic travel, which will almost certainly rebound from the virus first.

I just bought more the other day, and plan to buy a lot more, depending on how things evolve.

At the end of the day, airfare will always be a need, and they are well situated.

Any other buyers on this forum?

[LawyerFlyfisher]

Maybe you’ll triple your money or maybe they’ll go Bankrupt...

[Indyguy24]

Originally Posted by LawyerFlyfisher

Maybe you’ll triple your money or maybe they’ll go Bankrupt...

If Southwest west BK, and the stock to zero, what airlines would come out on top, short of the government taking over air travel?

Of course all the airlines could go bankrupt, but the number of individuals that want to stay home, and the number of businesses that want to stay closed is getting smaller everyday.

[Runnin' Rebel]

I was on 2 Southwest flights this past week 5 hour flights each way. Both were no more then 25 people. Fully staffed, fully fueled although fuel prices have tanked and the aircraft still need regular maintenance flying or not.

Between 737MAX, CHINA virus and now that the company is asking for concessions from the unions which represent approximately 80% of the SouthWest workers. Don’t expect free bags or free changes of flights for much longer. One last issue is people want refunds right now not a credit for the next flight. That’ll bankrupt more then 2 airlines. 10 billion per month losses can’t continue for much longer. AA is paying 1000’s of senior flight attendants and senior pilots between $5000 and $10,000 per month while on furlough. The Jr. Pilot’s and less senior flight attendants are the ones working. 600 pilots just took a nice fat buy out, expect the same from a lot of the flight attendants.

Good luck- this could go on for the rest of the year easily with out bankruptcies to eliminate CBA’s

[JasoninDenver]

I think that some of the other lower cost carriers will go belly up well before LUV would face this danger. They have more loyalty from their employees and I personally feel this may be the best worst case scenario benefit to this as a long term hold, other than their effective debt management.

[scarlet knight]

Warren Buffet sold his LUV. There are industries that have a business model that work in a Covid atmosphere. Tech, health care, stay at home activities (Netflix, Activision, etc.). I would not own an airline stock now. Risk supplants reward.

If the virus dissipates soon or there is a fast therapy or vaccine, you may have a home run. I see a strike out.

[Duey]

Look at LUV stock from mid 2013 and earlier. Then look at it in mid 2009 ($5 to $6)

So a great buy at $20 ?? (not even close to where it's going down to ...)

[samson66]

I was thinking the same thing. But I do wonder where the bottom will be. I don't see them going bankrupt

[LordNewport]

Bottom fishing only works if the situation is temporary/cyclical and will return to prior conditions.

I would steer clear of the airlines and hotels. This pandemic is forcing business to learn to do business without all the expensive last minute travel that makes up the bulk of profits to the airlines and hotel industries.

The business traveler has long underwritten the leisure traveler and that is coming to an end. Leisure travel has a very elastic demand curve while business travel was far more inelastic. That is changing as we type. Hotels and airlines are going to have to entirely restructure their balance sheets and business models substantially to survive without all the deep pocket/fat margin business travelers.

[Ballzzz]

I like JBLU alot better BUT still way to early to tell and no where near the bottom IMHO

[scarlet knight]

Don’t try to catch a falling knife.

[LordNewport]

Originally Posted by scarlet knight

Don’t try to catch a falling knife.

And never get sucked into a dead cat bounce either...

[Ballzzz]

Originally Posted by LordNewport

And never get sucked into a dead cat bounce either...

lOl

[Indyguy24]

Here we are 5 months later......sitting at $42.75/share.
Up 71% as of close today.

[kearez]

A lot of stocks have rebounded from their lows since May.

[superdog]

I still don’t trust airline/travel stocks.

But surely some will do well.

Good pick on this one. I’d take profits if I’m you.

[Jackie Daytona]

I had quite a bit of this I bought when it was at its low. Just sold it recently cause my son needed braces and the profit paid for those. Still have some, I agree with the general consensus about buying certain industries at the moment, but I feel like if any company can weather all this it’s likely Southwest.

Personally as someone that flys often I always choose them as a personal preference too. Their customer service is nice, and generally everything seems well kept.

Whenever I have flown any other they are very unaccommodating and have poor attitudes (Delta, AA) It’s always the same “you are not a double platinum emerald member” sort of quote followed by a sort of “shoo peasant” sort of thing. I really have little empathy for these companies, their employees a bit, but I don’t think of the other major airlines much as a company.

I guess sort of a buy companies you believe in sort of mentality for me.

[brandrea]

Dead money if you’re a buy and hold investor. Good if you’re a trader.

Here is how it compares to Walmart over a 5 year period.

Walmart + 99%
Southwest -9%

I get that a lot of people “trade” but most want to be passive investors. Airlines are typically not great investments if you’re a buy and hold investor.

[Etschell]

There is a whole stock thread.

That said i swung traded save earlier this year. Wouldnt hold airlines long term other than DAL.

My fav stocks after the crash were GE GM F and M. All swung traded and out.