Stock Tanked

[CaptBud330]

Anyone have any ideas why the stock tanked today?

 

[wench]

pardon me?

 

[FWAAA]

What goes up like a rocket can just as easily come down like a rock.

Dunno why LCC's stock took the biggest percentage hit today, but with oil still about $62/bbl, airline stock speculators (hard to call any buyer of airline stock an "investor") may finally be realizing that huge profits may not be just around the corner. AMR, CO and B6 have seen some declines from their recent highs as well.

A less charitable explanation may be the realization that LCC has some real uphill challenges ahead of it: Sticking two sickly airlines together doesn't necessarily mean you've just created a competitive powerhouse. Maybe it means you've just created a much larger sickly airline. Let's be blunt: USAir was on the ropes prior to the merger and HP wasn't a Wall Street Darling, either. When LCC hit $40 the other day, its market cap exceeded that of AMR. My guess is that reality may be setting in.

 

[FCYTravis]

Agreed with FWAAA. The stock got overvalued to begin with - I certainly don't think HP/US was worth $40 a share right now.

 

[28yrsnojob]

someone out there knows there are alot of problems. cost still way
way too high. Too much fat out there plus there like a kid in a candy
store with all this new money. The investors are in for a big suprise.
They have know idea how much money is wasted due to middle management
just stamping and approving for payment.

 

[BrutallyHonest]

Agreed with FWAAA. The stock got overvalued to begin with - I certainly don't think HP/US was worth $40 a share right now.

I heard it tanked because DP and all the other 20 or so top execs. sold there shares. Here we go again.

 

[autofixer]

It simply went up due to a rising tide floats all ships...there are no fundemental reasons for the stock to be worth much of anything.

 

[PITbull]

LCC went up on wall street's initial senitment.

I suspect managment was cashing some shares in at $40 and just enough to stay under the wire of having to report it to the SEC.

 

[mdsbear]

LCC went up on wall street's initial senitment.

I suspect managment was cashing some shares in at $40 and just enough to stay under the wire of having to report it to the SEC.

Try this site to track insider trading:
LCC Insider Trading
Shows a Nov sale of only $140K+. I don't know what the SEC cut-off for reporting is. Shouldn't be one at all, IMO.
Mark

 

[autofixer]

LCC is down over a buck this morning ...

 

[AP Tech]

Why LCC dropped over $3 yesterday is a mystery, but today the stock was downgraded by many of the major brokerage houses. Right now its down another $1.30. Could someone have had some info yesterday about the downgrade today and sold off???? Nah...... That would be dishonest B) B)

 

[autofixer]

Let's see, here is some info that we know:
1.The expected savings from synergies have not materialized.
2.The expected increase in load factors, due to draconian cuts in the fleet size, have not materialized.
3.Oil prices are remaining above $60 per barrel.
4.Labor relations remain very poor.

What else? I know there is a pot full of "bad" public info out there.

I am not being negative, it is all just bad news.

 

[Awa Contract]

bet ya Dougie's selling

 

[PITbull]

I would venture to speculate its Al C. and Jerry G.

 

[The Truth]

4.Labor relations remain very poor.

And your proof?

From my seat, labor relations has drastically improved under Doug Parker. The new management team has vast talent that will take this airline to a new level. I promise you that.

I won't speak for Doug, but he has a great attitude and is very open to the employee voices and ideas.

Pitbull, your negativity will never change. :down: But I wouldn't expect anything different from you.

Labor relations is on the right track!