View Poll Results: Will AA declare bankruptcy?
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Bankruptcy
06-09-2021 | 10:31 AM
#501
Prime Minister/Moderator
Joined: Jan 2006
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From: Engines Turn or People Swim
Except this is a four year look back rather than a 1 month look back, as are the charts showing net income. That’s a little harder to write off as a blip comparing a pandemic month to a non pandemic (or at least substantially recovered) month. As I’m sure you are aware, Rick.
Do you truly believe that an $8.45 Billion loss is trivial and will have no effect on operations on a company that had less profit than that in the preceding 4 non-pandemic years combined? Truthfully?
And yeah, they are nowhere near their authorized shares - they can sell more - up to twice more their current number
but how many companies do you know that are anywhere close to their authorized limit - which they set themselves at incorporation? And how do you figure selling more stock doesn’t lead to more stock dilution, which was the issue to begin with?
Do you truly believe that an $8.45 Billion loss is trivial and will have no effect on operations on a company that had less profit than that in the preceding 4 non-pandemic years combined? Truthfully?
And yeah, they are nowhere near their authorized shares - they can sell more - up to twice more their current number
but how many companies do you know that are anywhere close to their authorized limit - which they set themselves at incorporation? And how do you figure selling more stock doesn’t lead to more stock dilution, which was the issue to begin with?
The number of outstanding shares graph doesn't mean much if you don't know the authorized number. 420M to 640M might be a shift from 5% outstanding to 8% outstanding. Or it could be shift from 65% outstanding to 100%. Also matters what % of the total company equity is actually authorized.... if it's 20%, then no biggy even if it's all outstanding (I know AA is higher than that, it's just an example).
Also the graph scale is shifted up from the zero, so at first glance it looks like a bigger jump than it is.
06-09-2021 | 10:56 AM
#502
Line Holder
Joined: Oct 2010
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06-09-2021 | 12:31 PM
#503
Perennial Reserve
Joined: Jan 2018
Posts: 14,237
Likes: 254
And those who do ad hominem attacks in response to facts are indeed insecure, both in their own understanding of facts and their own ability to make a cogent case in the marketplace of ideas.
06-09-2021 | 12:37 PM
#504
Perennial Reserve
Joined: Jan 2018
Posts: 14,237
Likes: 254
No, I don't think the debt is trivial. I was commenting about presentation of info.
The number of outstanding shares graph doesn't mean much if you don't know the authorized number. 420M to 640M might be a shift from 5% outstanding to 8% outstanding. Or it could be shift from 65% outstanding to 100%. Also matters what % of the total company equity is actually authorized.... if it's 20%, then no biggy even if it's all outstanding (I know AA is higher than that, it's just an example).
.
The number of outstanding shares graph doesn't mean much if you don't know the authorized number. 420M to 640M might be a shift from 5% outstanding to 8% outstanding. Or it could be shift from 65% outstanding to 100%. Also matters what % of the total company equity is actually authorized.... if it's 20%, then no biggy even if it's all outstanding (I know AA is higher than that, it's just an example).
.
Also the graph scale is shifted up from the zero, so at first glance it looks like a bigger jump than it is.
06-09-2021 | 12:48 PM
#506
Perennial Reserve
Joined: Jan 2018
Posts: 14,237
Likes: 254
06-09-2021 | 01:32 PM
#507
Line Holder
Joined: Oct 2010
Posts: 1,990
Likes: 184
Crying about ad hominem is trolling 101. You bury threads with the same information over and over to push your agenda, and when people refuse to engage you say it's because we can't refute the 'facts'. If you were coming at this more honestly I think you'd see people willing to spend the time to respond. But your motives are clear so most won't put in the effort. I've already wasted too much of my time responding as it is. Enjoy your trolling!
06-10-2021 | 08:10 AM
#510
Perennial Reserve
Joined: Jan 2018
Posts: 14,237
Likes: 254
indeed, the difference being that they had been consistently profitable since 2009, had less debt, and more reserves.
DELTA Net income by year
https://www.transtats.bts.gov/Data_E...al.aspx?Data=7
Delta also has a BB+ bond rating vs a B- for American, meaning their debt service costs are less proportionally even for the debt they do have.
DELTA Net income by year
https://www.transtats.bts.gov/Data_E...al.aspx?Data=7
Delta also has a BB+ bond rating vs a B- for American, meaning their debt service costs are less proportionally even for the debt they do have.
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