Individual stock tip

[Dont_know_mind]

Im more confident in airlines bouncing back eventually but I’m assuming cruise industry will bounce back eventually.

I would be very careful with investing in common equity in any company that has a reasonable chance of bankruptcy.

Even if there is a bailout in the aviation industry, equity is usually wiped out (eg GM in 2009).

At some stage, the distressed debt and bonds in these companies maybe worth a punt. If they survive you pocket 20% p.a yield. If they go BK, depending on the bankruptcy, you end up with a variable amount of equity in the entity coming out of BK.

Howard Marks has written some good books and articles on distressed debt investing and the whole area of vulture hedge fund investing is interesting. I’m not sure we have anywhere near enough information as individual investors to have a good chance of successful investment in this area, although the potential returns seem eye popping.

It would seem to me that medium or long term investing in common equity of airlines and cruise operators is very high risk knife catching at this point in time.

[StarTrekDoc]

Funny how COVID changes things and perceptions on rebalancing and individual stocks; Have had Disney for the longest time when it was 90s and sold at the first big dip at 125 while dumping most of my BOA. Kept my 'loser' Zoom that we got back in Dec and so leftover BOA , paypal, ebay and V thinking people at home will still spend.

Guts with the cruising. That's not going to recover any time soon. I would be very interested in energy producers though once we get past the peak of this surge.

[xraygoggles]

My latest stock purchase XOM (Exxon mobile)

Blue chip is a safer bet in the oil sector.

USO for risk taking.

[fatlittlepig]

I imagine oil and gas will recover at some point.

How significant a percentage of your portfolio is attributed to individual stocks? If you do not mind sharing.

i think about 1/5

[Lordosis]

My latest stock purchase XOM (Exxon mobile)

I imagine oil and gas will recover at some point.

How significant a percentage of your portfolio is attributed to individual stocks? If you do not mind sharing.

[fatlittlepig]

My latest stock purchase XOM (Exxon mobile)

[xraygoggles]

You should do like the guy i work with. For 4 years he's been 100% cash, one of these conspiracy theorist who thinks the market was going to crash to 50% and doesn't understand the market at all.

Last week he set Triggers bought Boeing @ $90 (now 160+), Bought IVR @ 3.8(now 6.4), Bought MITT @ 2.75(now 4.27) and Bought the DOW Jones Index when it was down 35%. S&P 500 when it was down 30%. He doesn't even know what he was doing, just got a brokerage account last week. He just heard me talk about it and bought way more of the stuff than he should have. I'm talking putting 30% of his portfolio into Boeing. and put 20% into those REITS.

You talk about a completely oblivious dumb luck market timer.

It's only dumb luck if he sells for a profit.

Otherwise, it's just dumb.

[Jack_Sparrow]

You really timed the bottom perfectly. Maybe I should start listening to your advice.

I bought Carnival, but earlier this week. Also bought Uber and Disney.

You should do like the guy i work with. For 4 years he's been 100% cash, one of these conspiracy theorist who thinks the market was going to crash to 50% and doesn't understand the market at all.

Last week he set Triggers bought Boeing @ $90 (now 160+), Bought IVR @ 3.8(now 6.4), Bought MITT @ 2.75(now 4.27) and Bought the DOW Jones Index when it was down 35%. S&P 500 when it was down 30%. He doesn't even know what he was doing, just got a brokerage account last week. He just heard me talk about it and bought way more of the stuff than he should have. I'm talking putting 30% of his portfolio into Boeing. and put 20% into those REITS.

You talk about a completely oblivious dumb luck market timer.

[fatlittlepig]

You really timed the bottom perfectly. Maybe I should start listening to your advice.

I bought Carnival, but earlier this week. Also bought Uber and Disney.

Not necessarily, could go down again. Also I didn’t buy as much as I could have..

[xraygoggles]

I bought some at 15, and then more at 10. I was able to pick up some BA in the low 90's, so that was a nice one. They could all go back down again. Who knows.

You really timed the bottom perfectly. Maybe I should start listening to your advice.

I bought Carnival, but earlier this week. Also bought Uber and Disney.

[fatlittlepig]

I bought some at 15, and then more at 10. I was able to pick up some BA in the low 90's, so that was a nice one. They could all go back down again. Who knows.

[nephron]

I’m accumulating shares in CCL (carnival) and JETS. Five years from now you have to imagine these would have rebounded but who knows.

Did you buy carnival shares the day you posted this? The shares were $9.3 on March 18th. Today, they are up to $18.07. That's quite a profit for one week. I'm going to start day trading.

[Zaphod]

Id make a strong argument BOEING is one of if not America's most important company. Its one of our top exports. (and we own most of the supply chain as well). Huge manufacturing located in a lot of both BLUE and RED states. 1 of only 2 plane makers in the world. Once you get past food and water, airplanes seems fairly high on that priority lists. Its to big to fail. They will bail it out everytime IMO.

Exactly. Cruise lines on the other hand, not american in any way, let them burn.

[Jack_Sparrow]

I wouldn't risk boeing right now. The news articles that I am reading are saying the company may fold unless they get government assistance. Since 2008, I don't think that the public or the Republicans who railed against it are going to allow some corporate assistance package pass under their name. If they go bankrupt, the creditors and employees may get something but the shareholders are usually wiped out. I also question the companies fundamentals given their mismanagement of that 737 max business. The US may not like it, but there are other non-US companies out there that can build planes.

Id make a strong argument BOEING is one of if not America's most important company. Its one of our top exports. (and we own most of the supply chain as well). Huge manufacturing located in a lot of both BLUE and RED states. 1 of only 2 plane makers in the world. Once you get past food and water, airplanes seems fairly high on that priority lists. Its to big to fail. They will bail it out everytime IMO.

[fatlittlepig]

I wouldn't risk boeing right now. The news articles that I am reading are saying the company may fold unless they get government assistance. Since 2008, I don't think that the public or the Republicans who railed against it are going to allow some corporate assistance package pass under their name. If they go bankrupt, the creditors and employees may get something but the shareholders are usually wiped out. I also question the companies fundamentals given their mismanagement of that 737 max business. The US may not like it, but there are other non-US companies out there that can build planes.

I’m not a fan of the company or it’s management but I have a feeling they will eventually rebound. It seems like a quasi governmental company but I don’t know. Who knows.