AirTran Stock down 35% !!!

[satpak77]

Maybe some fpeople have inside knowledge that Airtran is going to merge and purposely drove down the stock price, using the Frontier Bankruptcy as an excuse. They get more stock when the price is down and when the merger is announced the stock goes way up and they make a lot of money? I don't know, it wouldn't suprise me what some people are up to.

If word was "out", even inside knowledge, that AAI was merging, the stock would go up in value, even gradually, over the last few days, since the belief would be that AAI found a "life preserver" and thus will benefit. Plus any merger can not be secret anyway, it has to be discussed and voted on at shareholder meetings.

 

[instructordude]

If word was "out", even inside knowledge, that AAI was merging, the stock would go up in value, even gradually, over the last few days, since the belief would be that AAI found a "life preserver" and thus will benefit. Plus any merger can not be secret anyway, it has to be discussed and voted on at shareholder meetings.

Thats what I mean, you drive the stock price down, then buy up a day later, getting a lot more shares and then the merger news comes out slowly and the stock goes way up. I don't know, kinda sinister but you never know.

 

[satpak77]

Thats what I mean, you drive the stock price down buy up a day later and then the merger news comes out slowly and the stock goes up? I don't know?

nah it does not work like that. The only way to "drive the price down" is to add supply to the outstanding shares pool. The only way to "drive prices up" is to buy up lots of shares and thus take supply out of the outstanding shares pool.

If I own 20M shares, and I sell them, I loose $$$ because for sure I am selling them at much less (in AAI's case) that what I acquired them at. Remember todays prices were all-time lows. So I didn't buy it anywhere near todays price.

So I am selling at a loss, then I run the risk of some hostile-takeover punk in the shadows scooping up my 20 M shares (my only control of AAI up till now).

So lets say my 20 M shares are now gobbled up? Now I sold at a loss, and also can never get them back.

Lets say I DO buy them back as proposed above. Then I am really rolling the dice that they rebound.

Plus, we are in a post-Enron world. The above activity is called price manipulation and is illegal. AAI would rather oil go higher than have a DOJ and SEC investigation be announced on CNBC.