NWA Stock... Dump it or keep it ?

[mnboyev]

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.

 

[Jumpseater]

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

 

[Phil O'Sopher]

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.

 

[viper548]

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.

 

[Hose A. Jiminez]

flightinfo.com, what a great place for investment advice!!!

 

[P-Dawg_QX]

If you ask me, I'd sell ALL of your airline stock. WAY too risky!

 

[AnimalTale]

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

 

[XXXPILOT]

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....

 

[COpilot]

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?

 

[General Lee]

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

 

[Diesel-9]

I would hold the shares. Steenland is playing poker with the unions and he doesn't have a poker face. His frustration is showing. Trying to get everything he can out of the current enviornment. Accountants doing all they can to show the gloom. Last year budget for fuel was $40. Averaged $50 or so. Company shows a loss of $540 Million. Misc. exspense of $409 million. There alone is a $1 Bil loss on the books with cash flow supporting the operation. Think the $409 mil. was cash paid for 5 A-330's. Recently financed all 18 787's with options for 50. 16 more A-330's coming online next few years. 14 year pension relief with 7 year transition period is what they needed. Hedge fund recentlyntly loaded up on NWA shares. Get by the Aug. 21 date and an upside potential. And if UAL gets out of Ch-11 before 2009 imagine the possibilities......

 

[SWA/FO]

DUMP! then buy a real airline stock.

 

[Lequip]

Aviation consultant Robert Mann said that if Northwest breaks the union, it will be AMFA's fault for demanding to be paid more than most other airline mechanics.

Northwest is letting the union "hang themselves. They're giving them enough rope and they're going to hang themselves. I hate to use that analogy, but Northwest knows where the rope is."

 

[USNFDX]

DUMP! then buy a real airline stock.

Real Airline...................You mean like SWA?

 

[AvroJockey]

Flight Info for Stock Advice?

You need to review Financial Accountly 101, take a thorough look a the 10-K and 10-Qs, avoid the emotions and sensationalization of the media, and make an educated quess.

Don't ever come to this board for advice! He!!, some of the people on this board hardly know enough to fly transport catagory aircraft, let alone know financials.

 

[Diesel-9]

SWA? A real airline?

 

[SWA/FO]

What are you crazy SWA a "real airline", no way. I was thinking something like one of the big 3. In fact, I dumped the 8,000 shares they gave me and bought some real stock!

 

[mnboyev]

Thanks for the advice.... From what I read ... Pilots do know what the he!! is happening,, and going on... Sincere thanks for your perspective folks !

I tend to think Steenland is going for the throat. Unfortunate.. But I do agree if they get past this little storm everything looks pretty darn good for the years to come. However, a much different work environment. (At the expense of the workers) Raise the fairs Steenland. Stop worrying about market share and ego.

I should have sold when it was 30 bucks.... Damn.

 

[furloughfodder]

If you ask me, I'd sell ALL of your airline stock. WAY too risky!

dude, your profile picture is freakin me out.

 

[Cardinal]

DUMP! then buy a real airline stock.

LUV has hovered within 20% of it's current price for the past 3 years. I like to buy and hold, but I'm still waiting for the "big payoff"