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NWA Stock... Dump it or keep it ?

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mnboyev

Well-known member
Joined
Dec 6, 2001
Posts
550
No Flames please...

So what should I do with the 350 shares of NWAC? What happens to the stock if they file? I sincerely hope that they dont... for the great folks that work there. However, if they do file and then emerge from chapt 11 after reorg, do share holders get reissued some form of there original stock. ??

And what if ... they merge with Delta or Continental in the future... how does that all work ??

Just curious... I know alot of you guys on here on pretty sharp with the 'stock' thing.
 
bizjournals.com
S&P downgrades NWA to 'strong sell'
Wednesday August 3, 10:01 am ET

Standard & Poor's Equity Research downgraded Northwest Airlines Corp. to "strong sell" from "sell" on Tuesday, citing an "increasing possibility" the airline will file for Chapter 11 bankruptcy within the next year, according to Forbes.com.

The research firm said Eagan-based Northwest has not made progress toward cutting labor costs. The carrier has said it needs to cut at least $1.1 billion in labor costs to avert bankruptcy.

Standard & Poor's Equity Research also said Northwest's stock price does not appropriately reflect the risk of bankruptcy. The research firm reiterated its $3 target price on the stock.

Northwest (Nasdaq: NWAC - News) shares were down 17 cents, or 3.5 percent, to $4.74 in afternoon trading Tuesday. Published August 2, 2005 by The Business Journal



http://biz.yahoo.com/bizj/050803/1144020.html?.v=2
 
mnboyev said:
No Flames please...

So what should I do with the 350 shares of NWAC? What happens to the stock if they file? I sincerely hope that they dont... for the great folks that work there. However, if they do file and then emerge from chapt 11 after reorg, do share holders get reissued some form of there original stock. ??

And what if ... they merge with Delta or Continental in the future... how does that all work ??

Just curious... I know alot of you guys on here on pretty sharp with the 'stock' thing.

I'm not sharp, but most companies operating under Chapter 11 declare their common shares worthless and those shareholders lose everything. Sometimes preferred shareholders might get some stake in the new company but most of the new shares go to those providing exit financing. I'm not familiar with NWA stock structure or what stock you have, but sometimes it's prudent to sell at the time, if you think they will go bankrupt, and take the capital loss. Good luck.
 
SELL! If you really want to own NWA stock wait until the new bankrupcy laws go into effect. If they haven't filed by then, buy the stock back it should go up a bit if they avoid within the next 3 months. Your odds would probably be better to just cash out, catch a ride to vegas and play one hand of blackjack with it.
 
You can get rich on airline stock------->if u know what u are doing!
In my honest and humble opinion:
Negative:
NWA----> TOO MUCH DEBT and LEVEREGED way too deep..HISTORICALLY, Management and Labor disputes. MGMT seems to have a strong belief in beating down the employees's moral (this alone can kill em).

Positive:
NWA------>If MGMT resolves their union issues by appeasing (stop pi$$ing them off) the mechanics, pilots, cleaners and FA. If NWA starts taking care of their passengers with excellent service, rather than the cr@p their doing now , I think they will survive to be a GREAT INTERNATIONAL AIRLINE. They have the routes, the passengers and the airplanes===They need to flush out the management and bring in Herb or Bethune. Nwa's problems are cultural.

They just dont have the team environment. Everybody is out for themselves. This includes their new CEO, Steenland. (Watch-out, he was Lorenzo's henchman)

Cya
 
When Usairways filed the first time the stock was worth ZERO..now its around .62 and will be worth ZERO when the merger happens....it's a no brainer...sell if you think they will file....
 
Great question, I bought 700 shares last week thinking that MX would come to the table and a nice bump would take place. "d'oh"!

The call is for $3/share now. hell might as well hold it until the 21st now, and just see if you might get lucky with a "day/after" bump?
 
I know DL and NW are both going down the tank, but I really don't think Steenland (NW CEO) wants to settle with any of his employees. It seems he would rather IMPOSE a contract on them thru a MSP judge. Grinstein seems to want everyone to think he can do it out of court, but I don't think that may be the case either. It almost seems like polar opposites----NW and DL----even though they seem to be travelling in the same direction....



Bye Bye--General Lee
 

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