Originally Posted by
Lobaeux
From a high of 85.35 back in early Dec 2014, to 39.60, the stock is tumbling. It may have been overpriced, but with a P/E of 10.89, I don't really think so. The troubling thing is the market cap, it's just over 2.91B, that's not good. We were over 5B less than a year ago.
Oct 27th is going to be very interesting, I'll be very interested to see the analysts reactions to increased capacity and the threat of AA (although I think the AA pricing structure is a publicity stunt, it'll get decimated by the Street if it continues). The worrying thing is the fact that AA has noticed us.
I think we're ripe for some sort of possibility, but I highly doubt it will be a merger with Frontier or American. If anything, I could see Spirit being taken private again, any further loss of market capitulation could be blood in the water for the funds. Being taken private could signal merger with private Frontier, then that would spark a greater IPO.
Just my .02
You don't have to be a private company to merge with a private company. It is possible, but I think Franke wants his money, and a merger would probably not add too much value to the stock while diluting the total number of shares available. The big reason for stock added value is when both companies lower their costs due to synergies they separately didn't have, but I think there isn't much more room for lower costs at either company. I think F9 will IPO before they do anything like a merger. Time will tell.
Originally Posted by
Plane Ramrod
You're right. Had this been an actual merger they would have brought in the hotel committee.
I always thought it was the hostage and internment committee. Or does that depend on if it's a hostile takeover or not?