MetalMover
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Rosy outlook for AA
- Thread starter MetalMover
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RJcasualty
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- Jun 29, 2004
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A market cap of $18.3 bil and rising just might turn out to be too much of a good thing too fast.
MCI transplant
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- Jun 4, 2003
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Well hell! ------ Why don't you do something about it ?dfw gen said:
RJcasualty
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Tis a pity the analysts aren't required to take a walk through the engine room. If the cash hoard continues to grow, DP might be squeezed into offering stock dividends a la Delta.
OP
MetalMover
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Same here...hope third times a charm.dfw gen said:
WorldTraveler
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dfw gen said:
this
AA still has plenty of debt to pay down... remember UA was in the same position right after its merger.
We'll see just how much debt AA actually has to pay down. We've still yet to actually see a fully consolidated balance sheet that comprises all of the effects of the convertible debt securities that have been transitioning into shares over the post-close period. My understanding is that the "vesting" of these convertible securities from debt to equity will not be fully completed until April, but when it's all said and done, I would not be at all surprised if AA's net debt - long-term debt less cash and cash-equivalents - ends up approaching the level where Delta is now, years after its merger.
Either way, AA's finances appear to be moving in a positive direction. For those committed to the notion - as an article of blind faith - that Delta is untouchable and has locked up a permanent lead over the industry that no competitor will ever be able to erode, what a scary idea. Shutter the thought.
Either way, AA's finances appear to be moving in a positive direction. For those committed to the notion - as an article of blind faith - that Delta is untouchable and has locked up a permanent lead over the industry that no competitor will ever be able to erode, what a scary idea. Shutter the thought.
WorldTraveler
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they either pay it down or carry it... it doesn't just go away.
and DP brought a few suitcase loads full of it when he walked in the door.
and you seem to forget that AA has ENORMOUS aircraft purchase commitments... you can call them leases and say they are off balance sheet but it is still debt. And DL doesn't have anywhere near that level of aircraft purchase commitments... and are paying cash for what they are buying.
When the proverbial doo-doo flies for whatever reason - disease, war, economic meltdown - airlines with fewer financial commitments weather the storm better.
It has been proven time and time and time and time again.
nowhere did I say DL is untouchable or that AA isn't moving in the right direction.
I have said that the rosy forecasts that many here have of AA's life post-merger seem to exclude a whole lot of factors that have been known issues for airlines in the past.
Further, I have also said that UA is at a greater risk of implosion for alot of reasons which has the potential to benefit AA.
and DP brought a few suitcase loads full of it when he walked in the door.
and you seem to forget that AA has ENORMOUS aircraft purchase commitments... you can call them leases and say they are off balance sheet but it is still debt. And DL doesn't have anywhere near that level of aircraft purchase commitments... and are paying cash for what they are buying.
When the proverbial doo-doo flies for whatever reason - disease, war, economic meltdown - airlines with fewer financial commitments weather the storm better.
It has been proven time and time and time and time again.
nowhere did I say DL is untouchable or that AA isn't moving in the right direction.
I have said that the rosy forecasts that many here have of AA's life post-merger seem to exclude a whole lot of factors that have been known issues for airlines in the past.
Further, I have also said that UA is at a greater risk of implosion for alot of reasons which has the potential to benefit AA.
- Banned
- #13
You do realize you start a sentence with a capital letter?WorldTraveler said:
Need some punctuation help also I see.
Maybe you are the one who needs some remedial English classes.
How does it feel to do the very same thing that you criticize others for?
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