IAG SA and other airlines. Time to buy?

Retireby40

csgohan4 said:

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. 

My overall life is pretty secure. (At the moment)

I have one BTL property that I inherited though I did have to pay the mortgage off so my savings aren't great.

My earnings are decent and I could afford to throw a few hundred a month into something and if it didn't work it wouldn't impact my life.

Maybe I'm better just throwing everything into SP 500. 

csgohan4

Retireby40 said:

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. 

I wouldn't pick IAG as long term, it is a value penny stock, with the hope if returning to pre covid price, then I am going to sell It is still a gamble and could still go bankrupt, much like holding CINE for example although the risk is higher there

If I held Alphabet, amazon it would be long term, knowing it will continue to grow, albeit at a slow and steady pace. 

Alot of index trackers have amazon and other big companies as well

Don't just pick a stock based on their price, you think Lloyds and BT are worth it?

Do your own research and don't gamble if you can't sleep well losing that money

DireEmblem

If you are putting in a couple hundred a month - that's a fair sum over a year, particularly if you only place in a single stock or two.

I would recommend you look at global funds instead.  You are in your early years of investing as you have said, so I would stick to a global equity fund.  VWRP or any FTSE All World Index Tracker fund.  Maybe allow 10-20% of your funds to go into the odd stock pick, and then over time, and I mean at least say 5 years, see if your individual stock bets outperform or not.

Its much easier right now with the market volatility for stock bets to pay off, but doesn't always mean they will.

LHW99

IAG was hyped in one of the tabloids (online) today - puts me off without looking any further!

csgohan4

LHW99 said:

IAG was hyped in one of the tabloids (online) today - puts me off without looking any further!

Together with Rolls royce they were the highest shorted stocks recently. To a lesser extend CINE as well, especially if you got in at 27 p. 

Shorting stocks is very risky and you could lose 10-30%+ in a matter of mins if you time it wrong. My second tranche in IAG may not be 90p but I know it is still a long way off their Pre covid price and some way to go there, assuming they don't go bankrupt

normally I wouldn't dabble in these shares, I would have stuck to index trackers and satellite funds, but there was an opportunity, sadly I wasn't investing 9 months ago

Retireby40

csgohan4 said:

LHW99 said:

IAG was hyped in one of the tabloids (online) today - puts me off without looking any further!

Together with Rolls royce they were the highest shorted stocks recently. To a lesser extend CINE as well, especially if you got in at 27 p. 

Shorting stocks is very risky and you could lose 10-30%+ in a matter of mins if you time it wrong. My second tranche in IAG may not be 90p but I know it is still a long way off their Pre covid price and some way to go there, assuming they don't go bankrupt

normally I wouldn't dabble in these shares, I would have stuck to index trackers and satellite funds, but there was an opportunity, sadly I wasn't investing 9 months ago

Have you looked much at Nio and the electric car market in China? Obviously we've all seen how Tesla is going. Nio in and around 40-42p at the moment. 

Based on the government schemes in China to get 25% more electric cars on the roads up from 5% by 2025 again seems an area that could potentially increase. 

csgohan4

Retireby40 said:

csgohan4 said:

LHW99 said:

IAG was hyped in one of the tabloids (online) today - puts me off without looking any further!

Together with Rolls royce they were the highest shorted stocks recently. To a lesser extend CINE as well, especially if you got in at 27 p. 

Shorting stocks is very risky and you could lose 10-30%+ in a matter of mins if you time it wrong. My second tranche in IAG may not be 90p but I know it is still a long way off their Pre covid price and some way to go there, assuming they don't go bankrupt

normally I wouldn't dabble in these shares, I would have stuck to index trackers and satellite funds, but there was an opportunity, sadly I wasn't investing 9 months ago

Have you looked much at Nio and the electric car market in China? Obviously we've all seen how Tesla is going. Nio in and around 40-42p at the moment. 

Based on the government schemes in China to get 25% more electric cars on the roads up from 5% by 2025 again seems an area that could potentially increase. 

they and xpeng are on my watch list, bit volatile at the moment

MEM62

Airlines - Require very expensive assets in order to operate (aircraft), has volatile pricing on one of its largest operating costs (fuel) and is playing in a market where the prices are heavily consumer-driven.  I have worked in the aviation industry all my life but there is no way I would invest in it.      

Retireby40

MEM62 said:

Airlines - Require very expensive assets in order to operate (aircraft), has volatile pricing on one of its largest operating costs (fuel) and is playing in a market where the prices are heavily consumer-driven.  I have worked in the aviation industry all my life but there is no way I would invest in it.      

Great input thanks. Its good to hear peoples views who are in the industry.

Retireby40

csgohan4 said:

Retireby40 said:

csgohan4 said:

LHW99 said:

IAG was hyped in one of the tabloids (online) today - puts me off without looking any further!

Together with Rolls royce they were the highest shorted stocks recently. To a lesser extend CINE as well, especially if you got in at 27 p. 

Shorting stocks is very risky and you could lose 10-30%+ in a matter of mins if you time it wrong. My second tranche in IAG may not be 90p but I know it is still a long way off their Pre covid price and some way to go there, assuming they don't go bankrupt

normally I wouldn't dabble in these shares, I would have stuck to index trackers and satellite funds, but there was an opportunity, sadly I wasn't investing 9 months ago

Have you looked much at Nio and the electric car market in China? Obviously we've all seen how Tesla is going. Nio in and around 40-42p at the moment. 

Based on the government schemes in China to get 25% more electric cars on the roads up from 5% by 2025 again seems an area that could potentially increase. 

they and xpeng are on my watch list, bit volatile at the moment

But at the price they are at which is quite low although volatile would you not think now is the time to buy.

If you wait till there's more evidence and consistency that they should fulfill their plans price rises will shoot up.