Regionals after Iraq war

[greyhound]

Jarhead

No worries about the comment.
Yes, an aircraft can be at full capacity, and just break even.
But I really don't think it applies to ALL the flights.
I also agree that it is sometimes better to operate and loose, than not operating at all.(to MINIMIZE loses) ECON 101,
but how long can companies sustain their loses before closing their doors? I still think they are making "SOME" profit.SOME carriers of course! or else they would be out of business or heavily in debt(life support).
Finally, you will definitely think I am crazy for this, but yes I am considering buying stock on UAL. Just throw about $100 dollars just to see what will happen in case it turns around in the long term.It's better than the slots in Vegas. Imagine the return if the stock price climbs to a DAL status or FEX! If it survives of course,if not what's $100 bucks!

 

[jarhead]

airline stock

Greyhound,

A few years back, I threw 20 grand into Comair stock. Held it for about four months, and then sold it for about 23 grand, just prior to the anouncment that Delta was going to purchase Comair. I would never do that again in the current climate, but as you say, if you have some mad money you want to throw at UAL, just be sure you are comfortable with the risk of losing it. A friend of mine bought $500 woth of Sam Goody stock some years ago, again, as a long shot at making a nice profit. Unfortunatly, the stock went south, and he sold ot at $100. But, he knew the risk going in.

While bad management is always possible, I think it is a mistake to paint ALL companies that are losing money as being run by "bad" managers. The market place often will prevent a company from making any profits due to circumstances that are beyond the control of even the MOST competent managers. The business climate is cyclical for many enterprizes, and sometimes the only thing the corporate captain can do, is batten down the hatches to keep the ship from sinking, and wait for the storm to end.

 

[greyhound]

Can't argue with that one, the climate is bad and all we can do is brace ourselves.
As for stocks, like I said, I am stll thinking about it.

 

[WMUSIGPI]

Hey, you forgot that we are going to have to deal with France too...


**CENSORED** the French... full speed ahead

No we just need to stop bailing them out every time they stick their head squarely up their a$$. They need to stew in their own stink for a while.

 

[Flywrite]

Greyhound,

I'm no business major, but as I understand it common stock is often cancelled in a bankruptcy. I'd be really careful about UAL. You may make a few bucks in the short term, but new stock will probably be issued IF the company emerges from CH11, leaving you with nothing.

If you really want to gamble that $100, buy 60-70 shares of AMR, hope that they avoid CH11, and hope even more that the stock returns to pre-9/11 levels one of these days.

(Dont take this as sound advice, I may be completely wrong about the CH11 stock cancellation thing).

 

[Draginass]

You're dreaming if you think AMR is going to avoid chapter 11 . . . . probably June.

In order to avoid it, UAL would have to close doors completely in April, which would get rid of a bunch of the gross overcapacity in the national system. That's a hell of a business plan, but it's about all that any of the majors have at this point.

 

[freightrash]

Don't forget about the endless list of other countries we may have to deal with:

N Korea
Iran
Syria
etc, etc

Things may be bad for quite some time. The public needs to deal with the sad fact that terrosism can and will happen again. Live your lives and don't fall prey to these a-holes.


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Well, I belive it will be quiet for while after we bust Iraq.