Fidelity Holdings in Airlines

[Len Lanetti]

I found the following interesting...

Reuters reports that mutual fund giant Fidelity
Investments has ramped up its stake in US airlines - and is a leading
shareholder at three big carriers, citing SEC filings. According to
the report, Fidelity has a 13% stake in UAL Corp.'s United Airlines, a
matching 13% investment in American Airlines (making it the carrier's
largest shareholder), and 15% of US Airways Group Inc., which makes
Fidelity that airline's largest single shareholder as well.

Len

 

[ScottM]

Wonder what they think is going to happen? Maybe "it can't get any worse"!

 

[tonycondon]

probably, plus you might as well buy cheap. it can only get better. i doubt the gov. will let any of the majors fold (sadly)

 

[Anthony]

The only reason to buy airline stocks is if fuel prices were going to come down drastically. I don't see that happening anytime soon. Airlines are busy right now, but the big guys still have horrible labor and fuel cost structures. I'm not buying any, but then again I didn't buy Microsoft in the 80's either.

 

[ScottM]

probably, plus you might as well buy cheap. it can only get better. i doubt the gov. will let any of the majors fold (sadly)

For that I think that UAL and AA might get some protection escpecially if Delta goes down the tubes. It is going to be interesting to watch what happens with them.

 

[Ken Ibold]

Remember: buy on bad news and sell on good news. And the news for airlines can't get much worse!!!

 

[ScottM]

i doubt the gov. will let any of the majors fold (sadly)

I have to be in Pennsacola for some Coast Guard classes and I am being told that the gov. would like us to fly Delta there even though it will require several stops. How is that for bailout help?? I think it is an effort to help them a little.

 

[Anthony]

Remember: buy on bad news and sell on good news. And the news for airlines can't get much worse!!!

Sure it can. Fuel prices continue to rise, airline's costs continue to rise. The time to buy would be when fuel cost hits its high. I don't think we are anywhere near its high yet.