Originally Posted by
stbloc
You understand diluting the stock is a last resort for most companies. No shareholder benefits from this and usually makes it a non investable investment. It shows how desperate they are by wiping out the market value of the company. The “skin” you speak of just kicks the can further down the road hoping for a miracle vaccine. What scares me the most is Doug lack of transparency about what’s going on. Other carriers CEO’s are very public while mums the word at AA.
“kicking the can” is almost everyone’s plan in this environment.
“no shareholder benefits from this” they sure do if it returns the company to profitability. I’d think every investor would prefer this to BK.
You’re right that this often isn’t viewed in the best light from an investment standpoint but it’s what’s necessary in this environment.
This would be a different discussion if air travel wasn’t down 75% right now.