United Stock

[propilot]

United stock is currently listed at $1.44/share. Is it possible to buy while they are restructuring? Why is this not a good idea? Could it be a good idea? I don't follow the markets too closely, so looking for some insight.

 

[Boeingman]

This should answer your question about a long term investment.

http://www.united.com/page/framedpage/0,1449,1378,00.html

Ask any UAL pilot about their retirements right now.

 

[Flying Illini]

link doesn't appear to work...

 

[dsee8driver]

Link worked for me!

 

[Draginass]

What kind of pilot retirement package is left at United now anyway. I heard that as part of the emergence from BK, the company is going to nullify even the vestages of the ESOP shares. What's left if that's gone?

 

[fLYbUDDY]

United isn't a very well-run company, but you might have a point about investing in them at such a low price per share. I bought Continental a few months ago @ $5.25 a share and sold it @ approx. $15 a share. I should have kept it; it is at 17 something now and peaked into the low twenties a little while ago. I don't know enough about United to say whether it is a good/bad investment, but from the surface a few hundred dollars at that price might not be all that bad. However, right now I think the best stock to buy (airline wise) is ACA. They are at 10 bucks a pop and the company is expanding. They are also very desired by Mesa, and I think something similar happened back in the day when Pan Am wanted to buy National. I think Pan Am paid a lot more to the stockholders than the stocks were actually worth just so they could get control of National. So far Mesa hasn’t shown that much interest, but you never know what can happen. Unfortuanatelly, all in all I think this is a bad week to invest anywhere. A lot of 'terror threats' are buzzing around, and that could shave a few pennies off of stocks by the end of the week. Also if any terrorist do get a hold of a cargo plane you can bet on most stocks dropping like they did on 9/11. Last word of advice is obviously don't just listen to me (or anyone else.) Research the companies and do your homework and if you are careful you can make some extra money for yourself. Good luck with whatever you decide to invest in.

 

[bart]

The stock is worthless. They are in bankruptcy! The creditors have taken control of the company from the shareholders and will distribute the value as they see fit, up to the point that creditors receive 100% of the money they are owed, with interest and penalties, which will not happen in our lifetimes. Therefore, the shareholders will eventually have their shares cancelled once the creditors decide to sell the company, either to another company, or by sending it public. Given United's current situation and the quagmire of poor management and organized labor, I would expect them to liquidate in the next 5 years ala Eastern.

If you want some cool certificates, then buy the stock, if you want an investment, you might look for a company that has a good long-term outlook, which United does not.

 

[AA717driver]

I'm down 10 Grand to TWA stock because of the bankruptcy. And I'm not even close to the top of the money lost column.

NEVER BUY THE STOCK OF A BANKRUPT AIRLINE!!!TC

 

[flx757]

I remember one poster on this board who was boycotting K-Mart because he bought their stock while they were in bankruptcy, then was surprised when it turned out to be worthless when they issued new stock after their emergence (a common practice). This was even after the directors warned investors that this would be the case.

Personally, I would be leery of investing in any company undergoing reorganization. That's not to say that it is impossible for your investment to pan out. It's just highly speculative, at best.