Originally Posted by Bucking Bar (Post 1642450)

We need to apply for a permit to protest at the next investor day ... want to see the benefit of $2 billion in ill advised stock purchases vanish in an instant for a $40 investment at the local sign company? Who would want to own the stock of an airline with labor problems?

Originally Posted by Scoop (Post 1642287)

Guys don't forget to make your DC plan rollover selections - due by June 13th. And be sure to leave some time to have the form notarized as required for many of us.


Scoop

Originally Posted by PilotFrog (Post 1642490)

Where on the website does one find that letter the better half has to sign? I looked all over and couldn't find it.

Originally Posted by sailingfun (Post 1642455)

The company I understand is now in compliance on a ongoing basis but has no intent to make up the shortfall. It was easy to predict non compliance after Europe started crashing. Those touting non compliance however based that on repeated statements that the cuts over the Atlantic were one sided. That was not the case.

The number of flights involved on a daily basis was not high ... .

Originally Posted by tsquare (Post 1642489)

Ill advised? Sez who? Seen the stock price lately?

Originally Posted by Gregory V. Milano is the co-founder and chief executive of Fortuna Advisors LLC

Though some are successful with share repurchases, the evidence overwhelmingly shows that heavy buyback companies usually create less value for shareholders over time.

'The evidence shows that heavy buyback companies usually create less value for shareholders over time.' — Gregory V. Milano Fortuna Advisors
Many managements have become so infatuated with how buybacks increase earnings per share that these distributions are crowding out sound business investments that create more value over time.

In one study, those that reinvested a higher percentage of their cash generation into capital expenditures, research and development, cash acquisitions and working capital delivered substantially higher total shareholder return than those that reinvested less.

The problem with buybacks is considerably compounded by poor timing: the propensity to buy when the price is high and not when it's low. A measure called buyback effectiveness compares the buyback return on investment to total shareholder return, and indicates whether the company buys low or high relative to the share price trend. From 2008 through mid 2011, nearly two out of three companies in the S&P 500 had negative buyback effectiveness.

Most academic research shows that share prices typically increase when buybacks are announced, which benefits short-term owners. For those interested in long-term value creation, which should be the focus of managements and boards, the evidence convincingly shows that buybacks usually do not help.

Originally Posted by Whitney R. Tilson T2 Partners LLC

WSJ: Mr. Tilson, what makes buybacks work for investors, rather than against them?

MR. TILSON: I agree with Greg that most companies do not think or act sensibly regarding share repurchases and therefore end up destroying value.

It never ceases to amaze me—and, when a company we own does the wrong thing, infuriate me—how few companies think sensibly about this topic and thus buy back stock for all the wrong reasons: to prop up the price, signal "confidence," offset options dilution, etc.

Originally Posted by tsquare (Post 1642489)

Ill advised? Sez who? Seen the stock price lately? Read much in the financial papers? Delta is high on the list right now for investors. Your threat of "labor problems" is ridiculous because frankly it is an empty threat. Protest all you want, but it won't mean anything because EVERYBODY knows that we are contractually bound, and the weight of the US gubbamint will ensure that we do not go off the reservation in that regard. Frankly, I have no desire to pay a hefty fine to argue an unwinnable point. Which by the way is wholly unrelated to our situation.

Originally Posted by Bucking Bar (Post 1642504)

Exactly.

Buying at $6 a share, when they needed to show confidence would have been terrific. Buying at an all time high (for this share issuance) is ill advised.

For starters, this use of cash indicates management has no better ideals on how to invest in Delta, Inc's core business. That aligns with using partners to outsource even more of our core business than what we agreed to.

Originally Posted by Bucking Bar (Post 1642483)

... and Sailing, that is not unreasonable.

But, if you are like me and enjoy flying Delta jets (I think we're the same in that regard) then how do we encourage Delta to use Delta pilots to perform Delta flying?

You are a very reasonable man. But aren't you the least bit frustrated personally with yet another scope violation?

The stove pipe effect of enough seats to fly 11 widebodies across the Atlantic a day would be at least equivalent to those 10 A330's we are ordering. Lets see how much down stream pin action is generated by those hitting the line.

Originally Posted by tsquare (Post 1642489)

I have no desire to pay a hefty fine to argue an unwinnable point. Which by the way is wholly unrelated to our situation.