Scrapdaddy

How far would that reach on the list DOH wise?

wilco811

that will be down to 04/2017 DOH

John Jay

I was typing too quickly. I didn’t mean market cap or intrinsic value. I should have said highest market value per share and highest book value per share. My point is we don’t get a situation where shares are over 2 x the price of what assets are worth if the company is poorly run.

ELAC321

I don't think value per share is as important as you think it is.

KIGECA97531

The high stock price is nothing but a poison pill to a hostile takeover. It's not hard to achieve when one person owns 40% of the issued stock.

ELAC321

​​​​​​Why is a high stock price a poison pill for takeovers? Apple just did a 4 to 1 stock split bringing their price from 400 to 100. It all depends on outstanding shares x share price.

If the above poster is talking about price to book value then Allegiant is not worth more than other airlines.

Allegiant share price is so high because there's less shares on the market. Allegiant could do a stock split if they wanted.

KIGECA97531

But they don't want to split. Because of the high valuation and P/E ratio. A hostile would have to cough up a lot of cash. So they control the amount of outstanding shares tightly. Get it?

copy

A stock split does not affect the P/E ratio. A quick google search will confirm that for you (and maybe clear up some of your financial misunderstandings). ALGT has 16.24m shares outstanding at $111/sh as of this writing. That makes the market cap $111*16.24m, or $1.8bn. If ALGT decided to do a 10:1 split, the shares would be $11.10/sh and there would then be 162.4m shares outstanding. But the market cap would be the same ($11.10*162.4m=$1.8bn) because nothing changed that would affect the value of the company. The value of the company doesn’t change based on the number of shares outstanding.

An acquisition, either by purchasing enough shares on the open market to have a controlling stake, or a tender offer, would cause a rise in the stock price (obviously, because any tender offer would have to be at a premium, and if they were buying shares on the open market that would also drive the price up due to supply/demand). But the proportion it would affect it wouldn’t change with a stock split. So I’m not sure why you think having a stock split would affect anything to prevent a hostile takeover. I think you should google and read about the following: stock splits, poison pills, market cap, enterprise value, hostile takeover...unless I’m missing what you are trying to say.

ELAC321

Yes I get it that pilots believe they're experts on every subject. Go ahead and check out P/B price to book ratio if you want a picture of how the market is valuing your company including liabilities against others.

KIGECA97531

Pot meet kettle.