Conflicting and Confusing!


Aug 20, 2002
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On Wednesday, J.P. Morgan's Jamie Baker advised clients to buy depressed airline stocks 24 hours before the bullets start flying in the Gulf. A relief rally, exacerbated by declining oil prices and potential transatlantic recovery, could potentially drive 100% to 150% upside from current levels, he wrote.
And while it's entirely possible that stocks could double from current levels once the war overhang lifts, as the ATA points out, it's also possible that the whole industry could be wiped out. Nowhere on Wall Street are the stakes higher for investors, especially those investors with a sweet tooth for risk. But ordinary investors who think they're going to get ahead by buying a carrier at $1 a share have another thing coming -- despite the valued brand name, stock in a bankrupt company is essentially worthless.