Airtran down to $1.80

[Max Powers]

both DAL and NWA stock are down almost 5 dollars each in the last 5 days, AAI is only down about a dollar.. Sounds like AAI is the one putting the hurt on DAL.

Anderson is smarter then that, They know full well that if they put AAI out of business Southwest will move in the next day and put a real hurt on DAL/NWA.

Where do I even begin with this one????? Using the base line price of a stock to determine how much value was lost???? Are you an idiot? Look you need to probably use a percentage if your going to use the price of one share. 1 dollar is X percent loss and 5 dollars is Y percent loss. This would be a way to compare. But best thing to do is to look at balance sheets and staying power. Or if you want to determine straight value look at Market Capitalization.

 

[Max Powers]

That strategy worked so well last time . . . . AAI doubled in size, and DAL went Chapt 11.



Notificatiion that Max thinks it's a smart move should immediately signal the death knell for any idea. :laugh:



SWA just announced MSP service. When exactly will NWA start destroying them? Just so I won't miss anything.

Competitors can get into NWA's hubs but not their territories.. For example you'll be able to fly from their hub to your hub but that's about it. History has shown this to be correct. DAL with over 6 billion in the bank can beat off the competition a lot easier then AAI can even exist with its 326 million in liquid assets.

 

[Ty Webb]

DAL with over 6 billion in the bank can beat off the competition

More words of wisdom from Max

 

[Eagle757shark]

Ask yourself if anything has changed for the better in terms of Air Tran's business plan since it was trading at $1.30-$1.50 last July. Is the economy more robust? Fuel is lower, but analysts are showing that AAI will have a loss for the current year and a small loss for next year. That doesn't translate to higher stock prices.

Do some research for yourself: Go to www.airtran.com and look under investor relations, and then earnings. You will see that AirTran as of 10/10/2008 is forecasting to make a $37 million dollar profit for the year 2009.

 

[Andy Neill]

Do some research for yourself: Go to www.airtran.com and look under investor relations, and then earnings. You will see that AirTran as of 10/10/2008 is forecasting to make a $37 million dollar profit for the year 2009.

I agree that the analysts are all over the board on forescast earnings for '09. As of today, the estimates are anywhere from a $0.99 per share profit ($115.9 million) to an $0.82 per share loss ($96 million) for the year. The average of the estimates of the 10 analysts is $0.02 per share = $2.3 million. On the day I made my post, it was something like an $8.5 million loss as the average for the year. If they reach a $37 million profit in 09, that would be a good return on investment. If they hit the mean estimate, it would not.

 

[Murphy]

Atlanta is big enough for a two carrier operation with both carriers making money. I would wager that the Big D would rather have AirTran to compete against than Southwest.

 

[kwick]

Maybe Delta will buy Airtran, then we will see if all the "relative seniority " advocates will be consistant.

Probably not, let's see, a guy half-way up Airtran's list asking the "General?" to bring the gear up.

 

[maxblast72]

Going for 2.70 today. Up more than 50% in one week. While airlines may not be great long term investments, day traders have to love the volatility of some of the smaller airline stocks.