Delta Update

Like I said in an earlier post, I own Delta Airlines stock--10,000 shares to be exact. I bought it at $.65 cents a share. Today, it closed at $1.10. As far as trades go, I say I have a pretty good trade on my hands.

Ultimately, I'd like to hang onto this position until Delta begins climbing near an area of its former glory--It was as high as $40 dollars a share at the beginning of this decade. 40*10,000 is $400,000. To most people that's serious money. I'd be happy with $100,000, and it only needs to go up to $10 a share for that to happen--that's more realistic.

American Airlines went down to $.50 a share a couple years ago before it shot back up to $28 bucks a share.

Let's say you were a savy investor with some capital--you could have taken advantage of American Airline's dip. Let's say you had $50 grand and bought 100,000 shares. Today those shares would be worth about $2,700,000.

There aren't very many people in this world who couldn't retire off of $2,700,000. This was just one trade and it only took about 2 years for this to happen. The funny thing is--this happens all the time.

Every year I get 2 or 3 great ideas. I don't do anything special. I just follow the market. I paper trade a lot.

The beginning of this year I was looking at Delphi when it was $.30 cents a share. It's at a buck eighty right now. It's trending nicely. Do the 100,000 share scenario on this one.

Kmart was the same thing.
JC Penny the same thing.

I guess if you haven't figured I like companies that are in Chapter 11--probably NOT the most intelligent way of investing, but sometimes it pays off big. It goes along with the old saying--buy low-sell high. Well, if a company's in Chapter 11, it's going to hit it's low--probably its all time low. The trick is determining which ones are going to hit -0-. You don't want to own stocks that go to -0-.