11Jun07 - LCC stock below $30 per share

[MiAAmi]

All airlines down today but is the LCC stock price looking better for another takeover?

 

[jimcfs]

LCC closed today at $29.66.

 

[Walmartgreeter]

"another?"....when was the first?

Greeter

 

[sundiego]

The stocks gona hit 0.00 $$$ if doug parker dont pay the employes soon what they deserve for working with this USWorst Airlines.

 

[Mike]

The stocks gona hit 0.00 $$$ if doug parker dont pay the employes soon what they deserve for working with this USWorst Airlines.

No No No..we all must work harder for much less so Doug's "High Risk" stock will pay off!

 

[Mr Furlough]

I think that if anyone were challanging the east's claim of running the company into the ground; they should take note of this. This is one of several warning signs that this company is in real trouble.

In think every single time in this company's past when the stock dipped below $30/share-the thing just sank like there was no tommorrow. I don't recall a single instance when it rebounded.

It always seems like everyone know's what needs to be done, but management just comes up with more and more really dumb ideas.

I wonder how they will handle the furloughs on each side in the coming months? Here we go again.....

 

[Phoenix]

...

In think every single time in this company's past when the stock dipped below $30/share-the thing just sank like there was no tommorrow. I don't recall a single instance when it rebounded.

So let me guess... you are short on the stock.

 

[luvthe9]

The stock would rebound nicely if the BOD were to wake up and FIRE Parker and Kirby!!!!!!!!!How many more failures will this board put up with?

 

[ussnark]

I think that if anyone were challanging the east's claim of running the company into the ground; they should take note of this. This is one of several warning signs that this company is in real trouble.

In think every single time in this company's past when the stock dipped below $30/share-the thing just sank like there was no tommorrow. I don't recall a single instance when it rebounded.

I think we need to step back and take note exactly what the stock market is all about. Unless new shares are issued or some obligation like a note or lease has some clause referencing market capitalization, the share price really does not mean much, going up or coming down. Especially when the industry is moving the same way.

People buy and sell shares all the time. If they see a better investment opportunity, they will liquidate their shares and buy into something else, it may have nothing to do with the health of your corporation.

It always seems like everyone know's what needs to be done, but management just comes up with more and more really dumb ideas.

I wonder how they will handle the furloughs on each side in the coming months? Here we go again.....

I would like to suggest that it is not the ideas that are dumb but the implementation that sucks. What Tempe did with the IT changeover, near as I can figure out, is, they flew a newly designed, first flight passenger aircraft, with no passengers on a quick "proving run" around the pattern, then released that aircraft for regular service not knowing any limitations, no stall speeds, no max speeds. Then, to make matters worse, they blamed the pilots when it crashed.

Within two weeks, in a rational corporation, the CEO and IT director should have been gone, to spend more time with their families, I guess. Instead, they are still here. What does that tell you about the Board of Directors and/or the corporate direction?

In a sane world, one might actually think the debacle was done on purpose! Instead, many think it was just incompetence, or the stars were not aligned, or whatever.

Look around. Lowest labor costs in the industry, worst quarter and US showed a profit. Going into the 2nd best quarter, with lowest labor costs, almost deliberate fumble of IT changeover and losses all around. Does it make sense to you?

I really don't think the Board is giving Parker a pass. There may very well be something else going on here (facilitated buyout - artificially lowering the stock price?). Heck, I don't know. Just please don't think things are nearly as straightforward as they should be.

Oh, I agree with the furloughs. All the more reason to can the Nicholau "award".

 

[PITbull]

I think that if anyone were challanging the east's claim of running the company into the ground; they should take note of this. This is one of several warning signs that this company is in real trouble.

In think every single time in this company's past when the stock dipped below $30/share-the thing just sank like there was no tommorrow. I don't recall a single instance when it rebounded.

It always seems like everyone know's what needs to be done, but management just comes up with more and more really dumb ideas.

I wonder how they will handle the furloughs on each side in the coming months? Here we go again.....

New management and the investors were banking on a fast return on investment off the backs of the employee concessions. Now that's evoporating as the other legacies have brought their costs down to either match U or lower.

This management now needs to work for their compensation packages. They need to come up with a business plan that the customer wants; and that is above or better than the compeitition.

Well Doug???? Are tyou the "star, darling CEO" that wallstreet and West employees said you were, or are you a "hot air" loser like the CEOs who came before you?

 

[Mr Furlough]

I think we need to step back and take note exactly what the stock market is all about. Unless new shares are issued or some obligation like a note or lease has some clause referencing market capitalization, the share price really does not mean much, going up or coming down. Especially when the industry is moving the same way.


I would argue that it is "investor confidence" driving the price of our stock down. Or, more likely, because I still hold shares from the last distribution!!!!

 

[john john]

New management and the investors were banking on a fast return on investment off the backs of the employee concessions. Now that's evoporating as the other legacies have brought their costs down to either match U or lower.

This management now needs to work for their compensation packages. They need to come up with a business plan that the customer wants; and that is above or better than the compeitition.

Well Doug???? Are tyou the "star, darling CEO" that wallstreet and West employees said you were, or are you a "hot air" loser like the CEOs who came before you?

I believe DP is still looking to consolidate market share therefore running an airline is secondary. If he consolidates more compensation packages will come that is what is driving them.

 

[jimntx]

I think we need to step back and take note exactly what the stock market is all about. Unless new shares are issued or some obligation like a note or lease has some clause referencing market capitalization, the share price really does not mean much, going up or coming down. Especially when the industry is moving the same way.

People buy and sell shares all the time. If they see a better investment opportunity, they will liquidate their shares and buy into something else, it may have nothing to do with the health of your corporation.

Actually, when the shares in a company are dropping as precipitously as LCC's (yes, AMR stock is dropping also, but not that far and not that fast), it generally means that the investing public has changed it's mind about what the company is worth. And, when they used to think the company is worth $60/share, and now they think it is worth $28/share, the company has a serious problem.

Perception is everything in business. As I used to tell my employees at Texaco in the IT department, it doesn't matter how hard you are working if your customer thinks you are sitting here doing nothing. It doesn't matter how good an airline LCC is if the public perceives it as a disaster. Remember that those same people who buy stock also buy airline tickets.

SWA is a perfect example of managing perception and expectations. They are not always the cheapest fare and they don't always get you there on time. But, that is the way the traveling public, at large, perceives them.

 

[MiAAmi]

In the past 6 months LCC stock down 51.82%, while AMR down 22% and CAL down 21.42%. While most airline stocks down for the 6 month period LCC stock taking the biggest hit.

 

[usair_begins_with_u]

A friggen airline stock for $60 a share, IRRATIONAL EXUBERANCE STRIKES AGAIN.

For those that know how to use the search function, I have said in the past LCC at $60/share is best short position to take ever, all time. That bet was cash money in the bank. The only reason I can figure this POS airline stayed so high was that there were not enough float for the hedge funds to short this POS to hell soon after it emerged from what, it's 3rd bankrupcy?. I think this may have been the best single investment I have ever, ever made.

Where is all the Doogie is our savior talk, a real savvy air line guy, who will make all things work go??

He's a worthless drunk, but a damn good used car salesman. Any well educated MBA knows how to pull off the financial engineering slight of hand he did for a quick hit short term gain. Unfortunately he did it by screwing investors, creditors, all while raking employees over the coals.. What a guy.