Delta stock set to crash... maybe

[General Lee]

Pension liability becomes actual debt, especially when underfunded.

Then they go bankrupt and blame the pensions as the reason.

Not if you pay regularly. You don't think that is a normal cost? The PBGC is also watching. They told AMR they couldn't dump theirs in this BK.

I prefer the DC fund, which is in your own name.


Bye Bye---General Lee

 

[kf4amu]

Not if you pay regularly. You don't think that is a normal cost? The PBGC is also watching. They told AMR they couldn't dump theirs in this BK.

I prefer the DC fund, which is in your own name.


Bye Bye---General Lee

The article is claiming they are not paying the proper amount because they are overestimating future returns.

And remember, the SEC was watching Bernie Madoff too, so don't put too must trust in any government agency.

Good for them not dumping AMR's pensions, but the show aint over yet. I also prefer DC.

 

[kf4amu]

double post

 

[N1atEcon]

Ahhhh, I knew the General would be able to put some sunshine back in to this thread. Now if this was any other carrier he would give us his thesis on why this is not good.

 

[SIG600]

The article is claiming they are not paying the proper amount because they are overestimating future returns.

And remember, the SEC was watching Bernie Madoff too, so don't put too must trust in any government agency.

Good for them not dumping AMR's pensions, but the show aint over yet. I also prefer DC.

This.

 

[nwaf16dude]

http://seekingalpha.com/article/622701-bail-out-of-delta-before-the-stock-crashes

So this guy might be crying wolf a little. But what is the Delta pilot group giving up that is harder to get from the pilot group in bankruptcy, and what are they getting that is easy to take away? Playing with pension obligations is the beginning of the end for a lot of companies.

I would agree that delta's numbers aren't anything to brag about, however, the author of that article is short DAL. He wrote two articles in less than a week about why DAL stock was going to crash. Basically, he's about to lose a ton of money on his short position, so he's slamming delta in the press trying to save his own ass.

 

[Inconceivable]

I would agree that delta's numbers aren't anything to brag about, however, the author of that article is short DAL. He wrote two articles in less than a week about why DAL stock was going to crash. Basically, he's about to lose a ton of money on his short position, so he's slamming delta in the press trying to save his own ass.

+1 - and the fact it took this long for someone to notice that is why you shouldn't take financial advice from FlightInfo

Protip: For all Seeking Alpha articles - which are really just blog posts - scroll to the bottom and read the position disclosure FIRST then evaluate the piece in that context.

 

[Scoot 11]

Wow. Doesn't paint a very good future for DL stock.

Cue the Genital/OYS and Scoot in 3...2...1.

I'm sure they will set this straight.

When you and pft waveflyer are done hiney slapping each other over Delta's demise, you might want to consider that the author is trying to short the stock so he can make money on it. But don't let that stop you and wave from high fiving each other with your little love fest!

 

[waveflyer]

Scoot, all I said was you should be sure to see loopholes...
How is that celebrating delta's demise?
I dont think that and actually have a high opinion of a career there- and what your union USED to be before you started outsourcing so crazily.

-900's are mainline aircraft that will be deployed on mainline routes. They ought to be flown by mainline pilots. The argument against that is amazing.

 

[Secret Squirrel]

It's only money that belongs to the former northwest pilots right? No original delta pilot will lose anything so nothing to worry about.