Airline Stocks?

[Burnadell]

This is what worries me. Seems like 80+% of all big companies are too leveraged.

Nope. Some, but not all. That is why folks should have a good (great ) advisor to help make the right decisions!

Who would buy into a business that has a negative net worth and owes a gabllion dollars in debt while knowing that they are facing substantially more losses in the next year? Nothing wrong with buying stock in a company that is technically already bankrupt as long as you know that.

It scares me to read some of the comments on here. There is a difference between investing and gambling...but I know that you know that.

There’s nothing wrong with rolling the dice if one is aware that that is what they are doing.

[rut-ro]

Boeing is a good deal

Bought several shares when I posted this. It’s almost doubled

[Jason]

Isn’t all investing gambling in some form or fashion? Some are certainly better gamblers than others, but at the end of the day every dollar invested could be lost.

[Burnadell]

Isn’t all investing gambling in some form or fashion? Some are certainly better gamblers than others, but at the end of the day every dollar invested could be lost.

Nope.

Gambling, with the exception of card games which consists of decision making, is purely a game of chance, while investing is taking calculated risks based on researching the company’s fundamentals or the mutual fund’s objectives, track record of that fund’s manager(s). It involves lots of research. Do you think that mutual fund managers simply buy/sell stocks in the portfolio based on whims without doing their research/due (do ) diligence and actually meeting with the companies’ management and researching the various industry sectors?

Just sayin’!

[RiverRat1]

Nope. Some, but not all. That is why folks should have a good (great ) advisor to help make the right decisions!

Who would buy into a business that has a negative net worth and owes a gabllion dollars in debt while knowing that they are facing substantially more losses in the next year? Nothing wrong with buying stock in a company that is technically already bankrupt as long as you know that.

It scares me to read some of the comments on here. There is a difference between investing and gambling...but I know that you know that.

There’s nothing wrong with rolling the dice if one is aware that that is what they are doing.

If one is buying just to make 50-100% it doesn't matter what you buy if you buy near the market bottom. Actually one usually makes a lot more buying the ones with debt because they tanked the most based on BK fears.

If one is buying and planning to hold for years you are 100% correct. But still may not make a difference. If Cruise lines don't go out of business then they were the best buys ever..Most are up 100-200% already. Crazy.

I know that's considered gambling. But IMO the gamble is only buying before markets bottom. After they bottom it seems everything rockets up.

Look at oil stocks. They have tons of debt also. TONS. So much I can't bring myself to buy any of them. Even XOM has a lot.

[Charles]

Due (do)...someone less mature than us could make a joke with that

[RiverRat1]

Nope.

Gambling, with the exception of card games which consists of decision making, is purely a game of chance, while investing is taking calculated risks based on researching the company’s fundamentals or the mutual fund’s objectives, track record of that fund’s manager(s). It involves lots of research. Do you think that mutual fund managers simply buy/sell stocks in the portfolio based on whims without doing their research/due (do ) diligence and actually meeting with the companies’ management and researching the various industry sectors?

Just sayin’!

If fund managers (enough of them) do their jobs then technically stocks should be priced according to their risk/reward. So even if one buys a debt laden stock the reward should be greater.

If oil recovers quicky MRO will go up a lot more % than XOM. It's riskier/has more debt. So sure you can call it gambling I guess...but it should be and usually is all relative.

Again - long term you're correct. Short term I don't think it matters as most have lots of debt.

[Burnadell]

If one is buying just to make 50-100% it doesn't matter what you buy if you buy near the market bottom. Actually one usually makes a lot more buying the ones with debt because they tanked the most based on BK fears.

If one is buying and planning to hold for years you are 100% correct. But still may not make a difference. If Cruise lines don't go out of business then they were the best buys ever..Most are up 100-200% already. Crazy.

I know that's considered gambling. But IMO the gamble is only buying before markets bottom. After they bottom it seems everything rockets up.

Look at oil stocks. They have tons of debt also. TONS. So much I can't bring myself to buy any of them. Even XOM has a lot.

You are correct about short term plays rather than long term investing. I was simply explaining the difference between gambling and investing. I am not opposed to taking short term “flyers” ( no pun intended ) and do it myself. It is just important to know the difference. I have seen people post about buying companies that were in Chapter 11 and were surprised when their stock was deemed worthless when the company exited Chapter 11. Think GM.

XOM does NOT have tons of debt. They are only leveraged .12 while MRO debt/equity is .45, still a relatively moderate amount of leverage.

[Burnadell]

Due (do)...someone less mature than us could make a joke with that

That was in reference to someone who called it “do diligence “ once.

We may be old, but we can be immature the rest of our lives.

[Charles]

That was in reference to someone who called it “do diligence “ once.

We may be old, but we can be immature the rest of our lives.