Originally Posted by
RP4242
Im on the side of common sense.
How can you possibly say that wealth has nothing to do with a profitable operation anymore when the profitable operation is the direct cause by which the stock rises and creates said wealth.
Right or wrong, have a look at a 9-10% stock decline 48 hours ago, that had everything to do with current and near future profitability of the operation. Even labor negotiations, unless they go to some really extreme measure, are just a blip on the radar compared to the financial sheet when putting a value on a stock when having a look at the macro level. If the opposite was true airlines such as US Airways would have been worth 50c per share and not buying up far larger carriers.
This does not go only for Spirit, but every OA as well.
I didn't say that wealth has nothing to do with a profitable operation.
Those are your words.
Here's what I said, "
Originally Posted by GeauxPro
If a Spirit pilot values his/her investment in Spirit stock, he/she must realize that the moves BBB takes to keep the stock overvalued are in direct conflict with our expectations of making higher wages as a Spirit pilot.
There was a time in the world when business managed themselves for profitable operations. If their management was basically intelligent and honest, they managed themselves for profits in the long term.
That time is past. Wealth is created now with increases in stock valuation, not in running a profitable operation. BBB will do what he has to keep the stock value up. Our best hope of a pay raise will be when the participants on these investor calls get scared of labor unrest."
I'm not a professional wordsmith moonlighting on a b Board, maybe it could have been worded differently. We're both correct, it takes profits to make the stock have value, and many companies are managed as much for stock value as for LONG TERM profitability.
This creates a short term myopia in managers, and results in short term profit at the expense of long term viability. Good, loyal employees get shafted (google up Disney and IT workers) so that the short term looks good for Wall Street.
Investors love the present Presidential Administration, workers haven't faired nearly so well. Wall Street is up, investors are making bank, and our country is falling apart at the seams because the average working man can't make a living. When Workforce participation is at a post WW2 low and the market is on a seven year rise, something is WRONG!
And we did it to ourselves as we put our money into the market and then demanded instant sustainable gains.