stock market was up today...

#10,253
#10,253
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#10,255
#10,255
NorthDallas40 said:
So I just read a WSJ article on how AirBnB property owners or “hosts” are completely upside down during this fiasco since there is no travel or vacation business.

Basically you have a bunch of debt fueled want-to-be hoteliers. They bought properties on credit and counted on bookings to be able to make their mortgage payments.

And I’m really not having any sympathy for them from reading it. I mean what the hell should they expect. Their balance sheet is nothing but liabilities. And I see no reason there should be any money provided to bail them out.

What do y’all think?
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No.

If you finance multiple investment properties, and are counting on cash flows to service the notes... you are playing with Fire.

I feel for them. I really do. But they should have known this going in.

I ONLY pay cash for rentals. Not only is it more fiscally responsible imo, but it is so much less stressful.
 
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#10,256
#10,256
85SugarVol said:
No.

If you finance multiple investment properties, and are counting on cash flows to service the notes... you are playing with Fire.

I feel for them. I really do. But they should have known this going in.

I ONLY pay cash for rentals. Not only is it more fiscally responsible imo, but it is so much less stressful.
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I wouldn't have a rental. Once had several. Sold out, bought 2 vacation homes, and don't rent out either.
 
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#10,264
#10,264
Vol8188 said:
Can’t claim I read the article. Could’ve been sold after hours or late in the trading day?
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He sold the stock long before he talked about it. It doesn't take a genius to figure out that the airlines are going to suck for a long time as well as Boeing. If you have a long term outlook maybe now is the time to buy.
 
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#10,265
Velo Vol said:
Why should there be a "bloodbath" on Monday if he already sold all the stock?
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Because the Oracle of Omaha has spoken. A huge number of people hang on his every investing word. And he just said sell the transportation sector. And in fact he already has. His acolytes will quickly follow suit.
 
#10,273
#10,273
NorthDallas40 said:
I’d guess the latter. What does the transportation index look like?
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I don't really follow the transportation index. I talked with my broker last week and he was saying DAL price point was starting to look like a good entry point for long-term. It's looking even better after today. I'm still skeptical....once things open back up, I just don't see people traveling by air unless it is required.
 
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#10,274
#10,274
rjd970 said:
I don't really follow the transportation index. I talked with my broker last week and he was saying DAL price point was starting to look like a good entry point for long-term. It's looking even better after today. I'm still skeptical....once things open back up, I just don't see people traveling by air unless it is required.
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Even if there are there is ticket demand, for some period planes are going to be flying at partial capacity.
 
#10,275
#10,275
Velo Vol said:
Even if there are there is ticket demand, for some period planes are going to be flying at partial capacity.
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As cheap as fuel is they could still be profitable if they aren't burdened with too much in fixed type of expenses like pensions, facility rent, and plane leases or loan payments on their planes. If their labor is largely a variable component and airport costs are based mainly on arrivals and departures then those should survive. No telling what the pilots, flight attendants, and mechanics unions could be demanding though. Or if agreements with airports are long or short term with flexibility related to volumes. And if they have too many planes parked and out of service.
 
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