Remember my post two months ago where I meandered about whether to sell my United Airlines stock?
The stock had risen three-fold since I had invested in July and although I had an inkling that the stock would continue to rise (see my commentary in the link above), I decided to take the conservative route and sell. I pocketed a nice profit, but I have to admit I’m feeling rather sad today.
The headline today is UAL Buoys U.S. Airlines After ‘Blowout’ Revenue Data:
United Airlines parent UAL Corp. surged the most since September in Nasdaq trading, helping buoy the rest of the large U.S. carriers, after reporting so-called unit revenue that beat analysts’ estimates.
“This changes our industry view,” Jamie Baker, a JPMorgan Chase & Co. analyst in New York, said in a note to investors. United said yesterday that January passenger revenue for each seat flown a mile on its main jet operations and regional flights rose as much as 11.5 percent. Baker had estimated a gain of 3 percent to 5 percent.
Investors and analysts track unit revenue as an indicator of industry health. U.S. carriers have been struggling to boost fares because the recession has damped demand, especially among business travelers who typically pay the highest prices.
UAL jumped $1.99, or 15 percent, to $15.06 at 12:26 p.m. New York time in Nasdaq Stock Market trading. The shares advanced as much as 16 percent, the biggest intraday gain since Sept. 10. United is the third-biggest U.S. airline by traffic…
Did you catch that last paragraph? UAUA is now above $15.00/share and climbing.
A three-fold return on my investment was nice. A five-fold return would have been much nicer.
So I know many will disagree with me, but when it comes to airline stocks: I say make your decisions based on your emotions rather than on cold-hard numbers–especially if you fly the airline almost as much the FAs and pilots do. Rational thinking cost me thousands in potential gains!