03-21-2020, 04:57 AM
(03-20-2020, 10:35 PM)chadnelson Wrote: I like Delta Airlines, it has come off 65% from its highs and I understand Warren Buffet owns a boatload of this company.
It also trades at 6 times forward p/e ratio, which is just ludacris! Anyone else looking at this airline?
I own a lot of DAL since before this all happened, because they are the best in breed. The current PE means absolutely nothing. The game just changed. Their actual PE is more like negative 47. They are burning $50M cash a day! All airlines are bankrupt soon without a GOV assist. It's reality they have to go further in debt. Whether the financing terms set them up for failure is the question. DAL was great because they controlled their debt, until now. It's a dangerous investment until they truly bottom, wherever that is.