PPRuNe Forums - View Single Post - Merged: Virgin Blue Share Price - how low can it go and for how long?
Old 16th Apr 2008, 06:40
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HF3000
 
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I would take you up on that with the exception that I wouldn't expect to see a profit in a "month or so". But I reckon you'd see a significant opportunity to sell those shares for a good profit some time in the next few years. Aviation is cyclic - the risk is when an airline doesn't survive a downturn. I think DJ will survive this downturn, and so will Qantas. I would buy shares in both airlines at the current prices. DJ may be a bigger risk, but also might turn out to be a bigger reward.

I wouldn't be taking out a margin loan on those shares though, so I suppose that means I confess there's a good chance of more loss before there is gain.

I also wouldn't commit more than a small percentage of my portfolio to airline stocks!
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