That's impressive Crema and way over my head...
That’s kinda what I thought,I have no ideal if he’s right or not but it’s impressive
i toss bags for a formerly bk airline, that's all . i've played the market a bit, mostly trading (never day-traded) and options. one has to separate a company's stock from the company itself..many great companies with dog stocks (usually too bloated/too many shares outstanding) and some sketchy companies with high flying stock as traders dream of $14/share earnings off 50 million shares outstanding.
i only stated my belief in what our execs have envisioned, with the blessing of the board of directors. the company IPOed with nearly 760 million shares and now we've shaved off just about 300 million shares. unbelievable.
dl is valued (market cap = share price x number of shares outstanding) at almost double aa, which is ridiculous. give aa the same amount of time dl & nw had to get the most of synergies, new revenue initiatives, younger, more fuel efficient fleet, more baggage fees (premium economy is charged now) and more credit card money. fares will go up and if oil does go down a bit, aa may keep the higher fares.
ua is around $70 for a reason and it's not because wall street believes it's the best run and best positioned airline. look at how many shares ua has outstanding and some are taking a risk that ua can't get any worse. eventually, ua will pay a decent dividend as it makes more and more money. that's the thinking, but looking at ua's market cap, not too many takers.
bottom line for aa, it needs to beef up the dividend.
other posters have given good reasons why i don't agree with another BK premise and i've made fun of jamie baker of jp morgan and his personal love affair with delta. i've said in the past, that delta gets free airplanes...because jamie only talks about aa's debt. it's equity..we spent it/spending it on assets, not on losing lottery tickets.
so, what will jamie say about delta's debt?