US Airways Stock In Freefall

US Airways stock price is down precipitously since mid-May. On May 19th, LCC stock closed at $10.32 per share; today it closed at $5.52. That's almost a 47 percent drop in just two and a half months! Yes, the stock market as a whole, and especially airline stocks, have been going lower during this period, but not this much. When airline stocks go lower as a group, LCC always seems to lead the way with the largest percentage drop. LCC stock has an unbelievably low price-to-earnings ratio of about 3 to 1. This tells me that the investment community does not have faith in this current management team to produce any favorable results in the future.
The stock is where this management has put it. They will get their next bunch of stock at some really low price then pump the stock price back up and dump some.


Bob
 
The stock is where this management has put it. They will get their next bunch of stock at some really low price then pump the stock price back up and dump some.


Bob

You are exactly right Sir. It's been done before. This is the most conniving, calculated, self serving management team I've ever worked under.

Bonuses based on performance instead of profits? They have their bank books wired for sound.

Driver B)
 
If I didn't work here, ergo I had money, I'd buy a bunch of the stock. I think It's waaaay undervalued.
 
Mainline fuel cost in second quarter was $3.29/gal (Express was $3.28) and was $3.10 for the first half of the year (mainline and express); these numbers are higher than at the airlines that hedged effectively (US is unhedged).

Here's the article I saw:

http://www.bloomberg.com/news/2011-05-23/jet-fuel-hedging-positions-for-u-s-canadian-airlines-table-.html
 
Looks like LCC is trading at .36 above it's 52 wk low. Any of you that bought at the bottom ready to cash in your profit, or going to ride it to 80? :rolleyes:
 
If I didn't work here, ergo I had money, I'd buy a bunch of the stock. I think It's waaaay undervalued.

Patiently wait for a bottom. Open an account at www.trading.com and buy on the cheap. In time you will be swimming in filthy lucre.
 
Hang on folks .... this economy has entered uncharted territory!

Oil dropped to $85 a bbl and airline stocks are STILL in a nose dive. LCC down today -4.58%
 
Relax people.

This is how our economy is supposed to heal itself. Not with this QE crap.

Once we come back, it'll be on a much stronger foundation.

All that QE did was delay the inevitable - this correction.
 
SWA stock led the pack in loss today.

Guess Wall Street doesn't trust their management the most.

Is that how it works?
 
probably related to the fact that WN's financial report - the last in the industry - was unfortunate enough to come out on the day that European and US markets were in a free fall - and LUV missed Wall Street earnings estimates by a substantial amount. - 20% or so
.
WN also posted one of the lowest RASM growth performances by the industry during this quarter's earnings cycle so the notion that they WN business model - which does include FL - is right for this type of economy is certainly in question.
Either FL had a lot of dead wood sitting around that ultimately was found or WN's aggressive assault in other markets such as DEN are hurting WN's bottom line.
Not surprisingly, WN management said they would slow if not stop growth.. and focus on integrating the two networks instead. Big growth plans and incursions into other markets seem highly unlikely.
 

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