(03-17-2020, 08:32 AM)EricL Wrote:(03-16-2020, 07:54 PM)fenders53 Wrote: Considering buying MO again. I got pushed out on a covered call some months back.
Just read BA credit rating was cut today to BBB. I suppose there is a whole lot more of that coming to the market soon.
Yeah, I don't think BA is something to buy other than speculatation at this point. I don't see how the dividend is maintained, and with airlines now asking for bailouts, you know plane order cancellations are coming too.
The same goes for airlines and autos. I read that auto sales are down 20% already, which is devastating for auto companies, as they don't have the margins to easily get over something like that. I know that 12% yield from F looks appealing, but when the dividend gets cut, what do you have left?
F is one of specs. Haven't been adding. The Div has been good for years, but you can get a great Div elsewhere now with far less risk. I own airlines but hindsight is 20/20 and I didn't know a virus was coming. I'll wait for this to shakeout before I consider add more DAL. The reality is virtually all earnings estimates are now in doubt and the entire stock market is speculative. Tis the nature of staying invested end of cycle. DGI doesn't work so well any other way.
BA is just a bad bet until you wait for this to sort out. Definitely on my watch list and very easy to wait when you know that Div can't stay as is when you are asking for a large bailout. On a side note the airline CEOs and execs have all volunteered to have their salaries lowered to normal people salaries as part of their request for assistance, as it should be.