IAG SA and other airlines. Time to buy?

Retireby40

A lot of airlines stock prices have nosedived for obvious reasons. Surely while nobody can predict the future if there was ever a time to invest in them it would be now. Price is rock-bottom and while next year or even the year after might not be back to normal with travelling surely 5 or 10 years down the line there should be some improvement in the travel industry.

It seems an obvious move however I'm aware nothings easy in investments. 

Anyone else buying at the moment or still cautious?

BananaRepublic

It will be many months before air travel takes off again, please excuse the pun. As you say, it’ll be years before it’s back to normal and that leaves plenty of time for airlines to go bust. If you can read the company accounts, and figure out which ones can survive, go for it. 

NottinghamKnight

A significant problem is that the global airline industry can achieve big losses even when times are good. Historically countries have bailed out national airlines and made routes uneconomic for competitors, there was also a long time when at least one of the major us airlines was in Chapter 11, which then came back out of bankruptcy protection after a period rather than failing and removing competition. 

Retireby40

NottinghamKnight said:

A significant problem is that the global airline industry can achieve big losses even when times are good. Historically countries have bailed out national airlines and made routes uneconomic for competitors, there was also a long time when at least one of the major us airlines was in Chapter 11, which then came back out of bankruptcy protection after a period rather than failing and removing competition. 

So you reckon buying in now may still be too early with all the possible problems? Its current sitting 164.12. In January before the CV share prices were around 650.00. Basically 4 times what they are now. If they even we able to reach 300.00-400.00 it would be good. But again. Its a gamble like most stocks.

csgohan4

Investing in IAG is not for the faint hearted. I think the boat has sailed IMO partly. If you invested in Monday morning that would have been the best time or best when they were sub 100p. 

You could wait and wait for another nose dive, but what if they jumped 10-20%? You need to make a decision when is the best entry point for you?

IAG are in alot of debt and their cash burn is not insignificant, they are a big risk compared to say investing in Tesla/ Amazon for example

IAG price is not that rock bottom at present, they are priced with Covid vac in mind and I suspect it will stay around this price for another 6-12 m before their books can fully be opened for business totally. 

I've recently sold all my Cine shares at a small profit and moved it all to IAG for the time being due CINE going above and beyond my risk appetite. They are volatile. Does IAG fit your risk appetite?

Why not put them all in an index tracker, which is generally safer

Retireby40

csgohan4 said:

Investing in IAG is not for the faint hearted. I think the boat has sailed IMO partly. If you invested in Monday morning that would have been the best time or best when they were sub 100p. 

You could wait and wait for another nose dive, but what if they jumped 10-20%? You need to make a decision when is the best entry point for you?

IAG are in alot of debt and their cash burn is not insignificant, they are a big risk compared to say investing in Tesla/ Amazon for example

IAG price is not that rock bottom at present, they are priced with Covid vac in mind and I suspect it will stay around this price for another 6-12 m before their books can fully be opened for business totally. 

I've recently sold all my Cine shares at a small profit and moved it all to IAG for the time being due CINE going above and beyond my risk appetite. They are volatile. Does IAG fit your risk appetite?

Why not put them all in an index tracker, which is generally safer

I'm only new to investing / gambling on stocks and shares whatever way someone wants to look at it. I'm small time. Couple 100 quid a month or so. Not throwing 10,000 in one go or nothing.

At the minute I have put money in 3 stocks.

Apple
Tesla 
Vanguard S&P 500.

All of these are long term and the likelihood is i will continue to drip feed my money into the 3 of them probably equally. For me it isn't about getting rich quick. The numbers I'm playing with is never gonna do that. Its basically trying to get maybe 5/6/7% annual increase. More and that's a bonus. My aim is long term so I'm happy to throw some money somewhere and leave it 5 years without problem. 

Its just the airlines do seem very low again for obvious reasons and it could be an opportunity to buy now and hope that in 5-10 years they reach what they were in January before the virus.

If you have any other good advice fire it my way. Thanks for the info and insight.

Ps where did you see 100p on Monday for IAG SA. Or is there another group? On trading 212 there was a big dip on Monday but shows around 129-130p. Not as low as 100.

csgohan4

100P around sept/Nov time, sub 140p on Monday  

I bought some at 90p and the rest on Monday. 

If your throwing in a couple of hundred here and there, would it not be prudent to put it all in an index tracker. When you come to buy/sell, the stamp duty and fees does eat into your profits for that amount. 

Say you gain 10% on a 500$holding, the fees aren't that insignificant, than say you made a gain on 50k holding

I had a colleague who threw 44k at IAG when they were 80p, he's made a boatload, something I regret not doing, but hindsight is always wonderful is it not?

Only invest money in shares you are prepared to lose. 

I made mistakes with CINE, but I got off lightly, I could easily made 10-30% loses if I wasn't careful. You will mistakes too, the market is not always predictable. Be cautious and do your own research 

Why not consider EZJ or RR, RDSB/ BP, much safer alternatives, sure the returns are less than IAG, but the risk appetite will be better imo.

Retireby40

csgohan4 said:

100P around sept/Nov time, sub 140p on Monday  

I bought some at 90p and the rest on Monday. 

If your throwing in a couple of hundred here and there, would it not be prudent to put it all in an index tracker. When you come to buy/sell, the stamp duty and fees does eat into your profits for that amount. 

Say you gain 10% on a 500$holding, the fees aren't that insignificant, than say you made a gain on 50k holding

I had a colleague who threw 44k at IAG when they were 80p, he's made a boatload, something I regret not doing, but hindsight is always wonderful is it not?

Only invest money in shares you are prepared to lose. 

I made mistakes with CINE, but I got off lightly, I could easily made 10-30% loses if I wasn't careful. You will mistakes too, the market is not always predictable. Be cautious and do your own research 

Why not consider EZJ or RR, RDSB/ BP, much safer alternatives, sure the returns are less than IAG, but the risk appetite will be better imo.

Thanks for your input. To be honest I'm at the early stage of investing and looking. While I could afford to throw £300-400 a month into something I would rather start slow first. 

For me between £100-200 a month is something I'm more comfortable with just on the basis I'm new to it.

In regards to the taxes etc do you only pay tax when you cash in your stocks and get the money put into your bank?

Or if I had £1500 invested over a 12 month period and it was worth £1700 do I have to declare the 200 profit even though it could go down?

I have a lot of learning to do in this theme which I'm trying to do. Its always great to get feedback from people who know more.

As for your last comment. I am open to investing in anything that logical could go up in the future. Whether that be easyjet or another group.

csgohan4

Retireby40 said:

csgohan4 said:

100P around sept/Nov time, sub 140p on Monday  

I bought some at 90p and the rest on Monday. 

If your throwing in a couple of hundred here and there, would it not be prudent to put it all in an index tracker. When you come to buy/sell, the stamp duty and fees does eat into your profits for that amount. 

Say you gain 10% on a 500$holding, the fees aren't that insignificant, than say you made a gain on 50k holding

I had a colleague who threw 44k at IAG when they were 80p, he's made a boatload, something I regret not doing, but hindsight is always wonderful is it not?

Only invest money in shares you are prepared to lose. 

I made mistakes with CINE, but I got off lightly, I could easily made 10-30% loses if I wasn't careful. You will mistakes too, the market is not always predictable. Be cautious and do your own research 

Why not consider EZJ or RR, RDSB/ BP, much safer alternatives, sure the returns are less than IAG, but the risk appetite will be better imo.

Thanks for your input. To be honest I'm at the early stage of investing and looking. While I could afford to throw £300-400 a month into something I would rather start slow first. 

For me between £100-200 a month is something I'm more comfortable with just on the basis I'm new to it.

In regards to the taxes etc do you only pay tax when you cash in your stocks and get the money put into your bank?

Or if I had £1500 invested over a 12 month period and it was worth £1700 do I have to declare the 200 profit even though it could go down?

I have a lot of learning to do in this theme which I'm trying to do. Its always great to get feedback from people who know more.

As for your last comment. I am open to investing in anything that logical could go up in the future. Whether that be easyjet or another group.

Always think of stocks as the last to invest in, get your foundation right, have a solid invest strategy. I would not invest in stocks if your starting out, the volatility gave me kittens to say the least. 

Have your base global trackers in place and others if needs be, only then with any money you can spare to lose, to consider stocks. 

Stock picking in itself is an art, I would certainly avoid SPACS at this time.  Don't do it is my advice unless you don't mind a 10-50% loss in a matter of mins. 

Thrugelmir

Retireby40 said:

csgohan4 said:

Investing in IAG is not for the faint hearted. I think the boat has sailed IMO partly. If you invested in Monday morning that would have been the best time or best when they were sub 100p. 

You could wait and wait for another nose dive, but what if they jumped 10-20%? You need to make a decision when is the best entry point for you?

IAG are in alot of debt and their cash burn is not insignificant, they are a big risk compared to say investing in Tesla/ Amazon for example

IAG price is not that rock bottom at present, they are priced with Covid vac in mind and I suspect it will stay around this price for another 6-12 m before their books can fully be opened for business totally. 

I've recently sold all my Cine shares at a small profit and moved it all to IAG for the time being due CINE going above and beyond my risk appetite. They are volatile. Does IAG fit your risk appetite?

Why not put them all in an index tracker, which is generally safer

At the minute I have put money in 3 stocks.

Apple
Tesla 
Vanguard S&P 500.

Why the duplication of Apple & Tesla. Makes a concentrated portfolio even more concentrated. 

Retireby40

Thrugelmir said:

Retireby40 said:

csgohan4 said:

Investing in IAG is not for the faint hearted. I think the boat has sailed IMO partly. If you invested in Monday morning that would have been the best time or best when they were sub 100p. 

You could wait and wait for another nose dive, but what if they jumped 10-20%? You need to make a decision when is the best entry point for you?

IAG are in alot of debt and their cash burn is not insignificant, they are a big risk compared to say investing in Tesla/ Amazon for example

IAG price is not that rock bottom at present, they are priced with Covid vac in mind and I suspect it will stay around this price for another 6-12 m before their books can fully be opened for business totally. 

I've recently sold all my Cine shares at a small profit and moved it all to IAG for the time being due CINE going above and beyond my risk appetite. They are volatile. Does IAG fit your risk appetite?

Why not put them all in an index tracker, which is generally safer

At the minute I have put money in 3 stocks.

Apple
Tesla 
Vanguard S&P 500.

Why the duplication of Apple & Tesla. Makes a concentrated portfolio even more concentrated. 

To be brutally honest i have no idea. I am completely new to this. Obviously I have read and followed Tesla and their plans. Apple are Apple and unless something drastically goes wrong (which it could) its just to have them on their own. 

I basically put £300 in the other day and have set up a standing order of £100 a month to invest. Maybe I'm just better throwing everything at S&P 500. 

Is there other companies better to invest in like the smaller ones outside the 500?

Is Airlines that are at a low price better. To be honest as you can tell I have 0 clue other than basically gambling with S&P 500 and putting a few quid into companies I believe will continue to grow.