PARKER HAS THIS AIRLINE HEADED FOR 3rd BANKRUPTCY

[luvthe9]

http://www.azcentral.com/arizonarepublic/b...holder0503.html IMHO!!!!!!!!!!!!!!!!!!!!

 

[Seatacus]

I guess people are selling their shares in US before the value goes to zero like it has twice before.

 

[luvthe9]

http://moneycentral.msn.com/investor/chart...mparisonsForm=1

 

[Elevation]

http://www.azcentral.com/arizonarepublic/b...holder0503.html IMHO!!!!!!!!!!!!!!!!!!!!

Can't go bankrupt if you're making money. I guess high school was not a priority for you? 😛

 

[aquagreen73s]

http://www.azcentral.com/arizonarepublic/b...holder0503.html IMHO!!!!!!!!!!!!!!!!!!!!

Some notable quotes from the article:

"many of the factors that made the industry attractive a couple of years ago - and produced hearty profits at US Airways and other airlines last year - have evaporated in the past few months."


"A slowing economy has hurt ticket demand. Labor costs, which were slashed in airlines' bankruptcy cases, are poised to rise again.

Talk of other mergers, which reduce the supply of seats, has slowed to a murmur.

Oil prices were high then but are even higher now, and there's no "safety valve," like higher ticket prices, to offset them, Shapiro said."


It appears PAR is selling based on macroeconomic factors, not, as you were hoping, because of anything to do with USAir specifically.

He probably sees the bigger picture and has connected the dots: a tanking dollar, skyrocketing commodity prices, light sweet crude production decreasing, nationwide housing stress, auto sales tanking, fiscal deficits getting bigger...generally the kind of stuff which spells economic hardship for a service based economy. Airlines don't do well in that kind of environment - even the best ones suffer. Shrewd move to get out completely.

 

[usair_begins_with_u]

When this POS company was trading at $60 a share, I said to myself, short position opportunities like this don't come along like this every day. Its called destiny.

 

[aquagreen73s]

When this POS company was trading at $60 a share, I said to myself, short position opportunities like this don't come along like this every day. Its called destiny.

Same goes for the homebuilders last year. Stucco sh!tbox production is dropping off a cliff. TOL at 30 is still an ok short.

 

[FM2436]

http://www.azcentral.com/arizonarepublic/b...holder0503.html IMHO!!!!!!!!!!!!!!!!!!!!

The article reads like the entire airline industry is about ready to tank. The financially strong should survive. I'd hate to be Northwest, United, or even Delta.

 

[aquagreen73s]

The article reads like the entire airline industry is about ready to tank. The financially strong should survive. I'd hate to be Northwest, United, or even Delta.

The only thing about UAL and NWA is their Asia flying. That could keep them propped up for a while, especially with the dollar tanking. Barring some sort of terrorism scare which causes Asians to book away from US carriers, one would think that both airlines will benefit from their gold mine Asia routes. DAL...gosh, I really don't know what to say other than it's definitely worthwhile to buy some puts.

 

[A320 Driver]

Same goes for the homebuilders last year. Stucco sh!tbox production is dropping off a cliff. TOL at 30 is still an ok short.

Exxon/Mobile has plenty of money. Matter of fact, if you think about the amount of money transfered to big oil by the average household, it's not surprising that there's not enough left for vacations, bigger homes, new cars etc.

It comes down to priorities. Everything is going up and it all revolves around the price of fuel. The only people who will argue this point are sitting on a wad of Exxon stock. They will tell you that big oil is as pure as the driven snow...riiiight!

A320 Driver B)

 

[delldude]

Can't go bankrupt if you're making money. I guess high school was not a priority for you? 😛

Funny...Dow Corning pulled that off to get out of paying damages for silicone implants...I believe they were making lots of money.

May 1995
Dow Corning files for Chapter 11 bankruptcy. Dow is facing 20,000 lawsuits, some with multiple plaintiffs and about 410,000 potential claims that have been filed in the global settlement. The bankruptcy essentially halts all litigation.

 

[luvn737s]

You can't run an airline on cash flow (don't ask me how I know). Without access to capital at reasonable rates, no business has much of a future.

 

[BluePacific]

Third? Don't we get credit for AWA's walk in canyon?
I mean like, isn't this going to be the 4th bankruptcy?

http://www.azcentral.com/arizonarepublic/b...holder0503.html IMHO!!!!!!!!!!!!!!!!!!!!

 

[delta777]

The article reads like the entire airline industry is about ready to tank. The financially strong should survive. I'd hate to be Northwest, United, or even Delta.

You might wanna take a look at what Merrill Lynch had to say specifically about LCC with regards to the slowdown. If anything US Airways is the one who should be a tad bit nervous right now, not DAL, NWA or UAL.

"Could be signs of further fundamental weakness; too much uncertainty in the stock
Although we were generally pleased with US Airways Mar Q results despite a backdrop of decelerating revenue trends, the share sale, in our view, may suggest, further deterioration of fundamentals. As US Airways is predominantly a domestic carrier (only about 17% of its system is int'l), they are not benefiting as much as some of their larger brethren (American, Continental and United) from the strength in overseas markets. Given the potential risks, we find it hard to justify a Buy rating at this juncture. Hence, the Neutral rating."

Perhaps Doogie knew of the forthcoming downturn and knew that having such a miniscule international footprint would bite him in the a$$. Hence, his overnight osession with DAL. At any rate, here's the entire article if you'd like to read it...

http://rsch1.ml.com/9093/24013/ds/59047246.PDF

 

[az_wild727]

When considering the "Conventional Wisdom" from Wall Street remember what the first four letters of the word "Analyst" spell

It's all just speculation folks only difference is they get paid to speculate.

One could not have said this as politely as you could have.