US Airways plans $150 million stock and note offer
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prechilill
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- Nov 28, 2002
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freedom
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- Feb 15, 2006
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Why not do a stock offer ? do as many stock offers as is humanly possible ....
This is the same advice i've given people on an individual level , AKA max out your credit cards ....
it's the same principle with the stock ... we lose NOTHING from offering it and we get money in return ! can you say CH CHING!!!!!!
This is the same advice i've given people on an individual level , AKA max out your credit cards ....
it's the same principle with the stock ... we lose NOTHING from offering it and we get money in return ! can you say CH CHING!!!!!!
Dog Wonder
Veteran
Very good! i approve!
Do you approve of selling stock in a company you predict will be out of business by the end of the year, or buying stock in a company you predict will be out of business by the end of the year?
Almost sounds like one of those Cash Advance stores. In order to pay back the original loan, you take out yet another loan with a different Cash Advance store. Vicious cycle.
freedom
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- Feb 15, 2006
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Let me pharse this differently so that my post will be approved ...
As far as i can tell the issuance of more stock doesn't in any way negaivtely affect those of us who work at us airways .... it provides CASH .... the more money we have the longer we can keep our doors open ..
Now if you can think of any downside to those of us who work here resulting from more stock being issued i'd like to hear it ...
I didn't see that stated anywhere so I'll assume that is your opinion on the stock and note offer. With the banks still very hesitant to lend I wouldn't be surprised if this was the easiest avenue to take to increase cash on hand.
I have a suggestion for you....The stock is in the open Market. I suggest that you talk your whole family into purchaing as much as they can so you as a US employee can feel good about the investments they made. Knowing all the while that youre maxing ur CC. If you feel good about having your family invest then I will believe that all you write about is not so far fetched.
Deal?
Listen, I'm on your side. Yes more cash is good, cash is king, we all know that. But it appears that you don't really know how the financial market work. You've heard the term, "can't have the good without the bad" right? Same thing here. When a company issues more shares to the public, the stock price takes a hit. It's sorta like supply and deman, if you delute the market with lots of shares, then the stock is not worth a whole lot as suppose to a company in which everyone wants to buy stock in but with only a few shares available to purchase. Obviously that stock price is going to cost more. So buy selling more shares you DO raise more cash, but your shareholders take a hit in the process. Now in US Airway's case, they have 114 millions shares outstanding (the amount of shares that are available to buy). If you compare that with similar size carriers, Continental has 123 million, and United has 142 million. So in perspective, LLC can afford to increase their outstanding shares a litte to be more in line with their competitors. BTW, SWA who has billions of unresticted cash, makes money and has tons of assets. Ever wonder why their stock isn't $100 a share? It's for this very reason. Too many outstanding shares.
I was under the impression that this isn't simply an attempt to raise cash-on-hand, but, as BoeingBoy stated earlier, this was to cover some of the $950 million in short-term debt that LCC took on in the previous 2 quarters that is now coming due. Perhaps LCC was in danger of breaking some covenants of those outstanding loans if they fell below a certain cash position, therefore the new stock issuance?
Anyhoo...Wall Street punished the stock today(as would be expected in a situation like this)down over 20%.
http://data.cnbc.com/quotes/lcc
Anyhoo...Wall Street punished the stock today(as would be expected in a situation like this)down over 20%.
http://data.cnbc.com/quotes/lcc
28L_or_10R?
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- Apr 11, 2008
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By offering more stock to the open market you create a position where there are many outstanding shares at a low price. These shares can be bought up by people like Carl Icahn for a controlling interest who do not have the best interest of the airline at heart. Ask any former TWA employee.
Sort of like Gordon Gecko and the fictional airline Bluestar in Wall Street, no?
