Share holders dismayed with Stock price of DAL

[Max Powers]

With the share price at 19.55 DAL market capitaliztion is 3.5 billion dollars.........Meaning if all outstanding shares were sold the company would be worth 3.5 billion dollars........Had the take over(USAIR) been completed the market cap would have been over 10 billion dollars....Opps the board of Directors really screwed the pooch on this one. Is anyone screaming foul I haven't heard DUI boy say anything as of late.

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CHICAGO (Reuters) - Shares of Delta Air Lines (DAL.N: Quote, Profile, Research gained more than 7 percent on Thursday after Lehman Brother initiated coverage and set a price target of $26.50.
Delta stock was up 6.6 percent at $19.55 in afternoon trade.
Lehman said in a research note that Delta achieved need cost reductions and capacity cuts during its time in bankruptcy.
"You're seeing a pop because of that," said Morningstar analyst Brian Nelson.
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Delta shares have fallen more than 10 percent since their return to the New York Stock Exchange on May 3. Airline stocks in general have been battered by a weakening domestic revenue outlook.

 

[Green]

tough time to go public with an airline stock. Everybody's getting hammered right now. It is interesting to note that ual, dal, and Lcc all seem to have about the same market cap. Obviously Dal and Ual have better route structures and assets which would leave me to believe that if they can manage the airline well then those stocks could take off in the next year or so, barring any recession....

 

[737 Pylt]

With the share price at 19.55 DAL market capitaliztion is 3.5 billion dollars.........Meaning if all outstanding shares were sold the company would be worth 3.5 billion dollars........Had the take over(USAIR) been completed the market cap would have been over 10 billion dollars....Opps the board of Directors really screwed the pooch on this one. Is anyone screaming foul I haven't heard DUI boy say anything as of late.

Max:
The problem was that doogie's plan was flawed from the beginning. He was going to put an already over debted (if that's a word) Delta even HIGHER in debt.

Delta shares have fallen more than 10 percent since their return to the New York Stock Exchange on May 3. Airline stocks in general have been battered by a weakening domestic revenue outlook.

It was to be expected. All the creditors wanted to dump some of the stock and get back some of they money they were owed. Look at what LCC stock has done lately, it was up to nearly $60/share when the buyout was announced, and now its hovering about $32/share. Down almost 1/2!
There was an article posted today that might shed some light on the subject....
Delta Air initiated favorably by Morgan Stanley, Lehman





By Padraic Cassidy
Last Update: 8:42 AM ET May 17, 2007




NEW YORK (MarketWatch) - Analysts at Morgan Stanley and Lehman Brothers initiated coverage Thursday of newly issued shares of Delta Air Lines Inc. (DAL :
delta air lines inc del com new
News , chart , profile , more
Last: 19.14+0.80+4.36%
2:44pm 05/17/2007

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<IMG class=pixelTracking height=1 width=1 border=0>19.14, +0.80, +4.4%) at the highest level, outperform and overweight, respectively, citing momentum and cost controls. The Atlanta-based carrier exited bankruptcy at the end of April, but the new shares have come under pressure, falling from an intraday high above $23 on April 26 to close Thursday at $18.34. Delta's "cost advantage combined with new network discipline should sustain modest outperformance in earnings," according to Lehman's note. Morgan Stanley said the shares had fallen to an attractive level to warrant an outperform rating and $26 year-end price target.

737

 

[Wiskey Driver]

Not to get back into this debate. I did see the exclusive plan but I don't remember the particulars. In any event I agree that all carriers are being hammered right now. I also feel that we are going the see mergers going forward starting real soon.

WD.

 

[ACL65PILOT]

This may be dumb, but I bought a bunch of the stock. I think that it will trade at over 25 dollars a share in the next year.

 

[Max Powers]

The easiest way to become a millionaire is to start with a billion dollars and buy airline stock...

Sorry acl65 but that was very dumb especially if you work there get deversified for crying out loud.

 

[puddlejumper101]

This may be dumb, but I bought a bunch of the stock. I think that it will trade at over 25 dollars a share in the next year.

I once had a very wise man tell me never to invest money into the company you currently work for. You already invest enough in them with your time and effort. Many people have been burned this way.

 

[Green]

I once had a very wise man tell me never to invest money into the company you currently work for. You already invest enough in them with your time and effort. Many people have been burned this way.

Obviously this wise man didn't work for Microsoft, Google, Apple, Amazon.com, Starbucks, Yahoo, etc. etc.... A wise man (warren buffet) once said 'never invest in airline stocks.' He said that he wished he had a 1 800 number he could call whenever he had the urge to buy an airline stock. I believe he got burned a few times on Us Air stock.

 

[Jetsetter]

No... a wise man would never take financial advice from the moron's on FI !!!!!

 

[FDJ2]

Thursday May 17, 12:54 pm ET Delta Air Lines Jumps on Positive Notes From Analysts, Citing Competitive Advantages

NEW YORK (AP) -- Shares of Delta Air Lines Inc., which recently emerged from bankruptcy, rose Thursday after two analysts said the company could become one of the most profitable in the airline industry following its restructuring.
Shares rose $1.23, or 6.7 percent, to $19.57 in afternoon trading.
Lehman Brothers analyst Garrett Chase, in a client note, began coverage with an "Overweight" rating and $26.50 target price. He said he expects Delta's earnings growth to outpace rivals for 2007 and 2008.
"Having emerged from bankruptcy, Delta finds itself on solid fundamental footing with continued momentum behind it," wrote Chase. "Cost advantage combined with new network discipline should sustain modest outperformance in earnings."
Bankruptcy forced Delta to cut costs and capacity, which has resulted in a competitive advantage, the analyst said.
Delta can benefit from continued international momentum, added Chase, who thinks shares are attractively priced.
Morgan Stanley analyst William J. Greene also rated Delta at "Overweight" with a $26 target price.
"With a focus on the premium and international business travel markets, Delta has a significant unit revenue growth opportunity should it reach parity with the industry," wrote Greene. "Combined with relatively low costs, Delta could be one of the more profitable U.S. airlines."