Why is NWA stock flying so high ?

[jetflier]

The last month could have made someone a lot of money is the bought NWA stock when it was hovering at less than 1$.

With the recent trades above $4.00 , any suggestions as to why NWAC is trading so high while other carriers are not ?

The merger speculation is there, but none of the other airline stocks are rising as much......

 

[AA717driver]

It's total speculation by those who aren't versed in airline bankruptcy history. Several friends loaded up on TWA stock when the AA deal was announced. They lost their a$$'es when they filed ch.11 and the stock was wiped out.

NWA's stock won't survive the bankruptcy. New stock will be issued to the creditors in lieu of cash and the old stock will be worthless. (A la UAL and USAir stock.)

The little investors who trusted NWA management will get F'ed in the end and the big dogs will get taken care of. Ahh, the American Dream. TC

P.S.--But if you're one of those who thinks "that can't happen here", go ahead and load up on NWA stock at $4. It'll go through the roof when you exit ch.11...

 

[Occam's Razor]

It represents a cheap way to speculate. If the planets align perfectly, the stock could be worth something if someone is willing to buy off the creditors and tender the 100-million shares of NWACQ.

The USAirways run at Delta is chum in the water to other venture capitalists and institutional investors with billions of dollars burning a hole in their pockets. Since the stock represents at least one way (but only under the most exact conditions) for an investor to grab control of NWA, plenty of others are willing to buy the stock to see if a big, stupid shark swims by. A broker I know described it as "playing the lottery". Small investment with big upside...if lightning strikes...

The lack of a DIP is a contributing factor. NWA is chugging along to reorg without a "sugar daddy" that must be appeased.

 

[007]

because no other airline has run their employess into complete and utter submission like they have......

 

[Diesel-9]

May be going private. Much going on behind the scene with Bonderman/Wilson and Texas investment group.

 

[ferlo]

Risk/Reward.

 

[737 Pylt]

because no other airline has run their employess into complete and utter submission like they have......

Um....I think DL has!uke:

737

 

[007]

Um....I think DL has!uke:

737

Delta replaced their mechanics with scab mechanics in record time?

 

[venr122]

I got a couple hundred shares a while ago at .47c knowing that it was a pretty good shot that I would get nothing...

I sold at 2 something and wish I held out longer....just for the naysayers that laughed at me.

 

[sinkrate]

After Parker made the unsolicited bid for DL several 'private equity funds' took large positions in NW stock. I can't remeber which paper I saw the article in. The financial press claimed there is a move afoot to take NW 'private' in an LBO. Most of the LBO's today amount to little more than a smash and grab robbery. No one wants NW's domestic structure but their Pacific routes are very valuable.

 

[jetflier]

May be going private. Much going on behind the scene with Bonderman/Wilson and Texas investment group.

Hey Diesel,

Where'd you get the info about Bonderman?Wilson from ?

Inquiring minds want to know.....

I've heard som rumbelings about it but haven't seen it anywhere..