International Airlines Group stock has legs but be careful

Discussion in 'General Trading Discussion' started by Gomer, Apr 23, 2014.

  1. Gomer

    Gomer Well-Known Member

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    Shares of International Airlines Group (Ticker: IAG LN) moved up some 5% in London trading on Thursday April 17th to close at £3.952. In a nutshell, we think the stock uptick has legs but is premised on everything falling in place nicely (this is what causes us some worries).

    So while a 10% upside is entirely possible from hereon, we think a better entry price is £3.71. We value the stock at £4.36 on a March 2015 basis. The street is even more bullish with some price targets out there exceeding £4.50. If you want to punt this, wear your helmets and set clear stops folks.

    Over the past couple of years, return of equity (ROE) on this stock has ranged between -17 to 14.2%, with December 2013 ROE of 3.7%. The street expects forward ROEs of 20% or more. All this is dependent on the company making Iberia profitable and increasing premium segment revenues at British Airways. Can they do it? Your guess is as good as ours!
     
  2. wanderingwildman

    wanderingwildman Well-Known Member

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    Between -17 and 14.2% is a huge range. I don't think I could ever invest in a stock with such big fluctuations. I wish them the best. But, I would not recommend investing in them.
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I hate airlines!
     
  4. Peninha

    Peninha Senior Investor

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    LOL, why do you say you hate airlines JR? The fluctuation is high all right, but they can be profitable.
     
  5. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Sooo many other industries you can invest in that are far less risky and far more profitable.
     
  6. bigoil88

    bigoil88 New Member

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    Iridium (IRDM) is the Best play in airlines now! When news hits, and it will soon, of their Aireon Division Low Altitude Satellite Air Traffic Control System this stock will Explode! Air Canada already signed on and following #MH370 look for all Major International Carriers to make announcements soon! For more info see this: http://youtu.be/w35qsqObhWo
     
  7. nashvilleshelby

    nashvilleshelby Active Member

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    I was not aware of this information. I will be looking at the shares of International Airlines Group. Thanks for the information
     

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