Originally Posted by BenderRodriguez (Post 1879834)

$5B in stock buybacks is 13% of the current market cap. All things are not equal in that because a stock buy back is mostly psychological, but in terms of pure static dollars it should increase the value of the underlying by 13%.

Stock options anyone?

Originally Posted by scambo1 (Post 1880145)

While a stock buy back may be psychological, it isn't smart. However, if the goal is to flush money down the toilet to avoid some sort of bone picking leveraged takeover it might make some element of sense.

I hold 30k shares of DAL. I still don't think it is smart.

Originally Posted by gzsg (Post 1880122)

Timbo

80,000 seems a little low.

Anyone have a more accurate number?

2.7 MILLION options worth over $100 MILLION dollars.

Originally Posted by formerdal (Post 1880326)

Originally Posted by orvil (Post 1879770)

Here let me take care of that for you.

PRESS RELEASE

DALPA would like to take this opportunity to congratulate everyone at Delta Air Lines on the outstanding job they have done to make this day possible. Today Delta announced a $6 BILLION dollar return to the shareholders by the end of 2017 and a 50% increase in the stock dividend.

DALPA would like to remind everyone that this day wouldn't be possible without the sacrifice of the Delta pilot and their families. The consummate professional, the Delta pilot is working under pay rates that are still 18% under their pay rates of 2004. The Delta pilot contributed to this day by the continuing sacrifice of their pensions, work rules and pay rates for the last 10 years. It's time to return capital to the Delta pilot.


It's not that difficult. I didn't attend communications school, but I do have a laptop.

Originally Posted by DAWGS (Post 1879801)

My first thought with this press release was that we already must have a deal or at least a mostly done deal. Why would the company release this buyback news during negotiations? I can only imagine if this happened during C2K! Oh my how times have changed!!

Originally Posted by OldFlyGuy (Post 1880119)

Yeah, but still chump change compared to the large institutional money. I just fundamentally disagree with the concept of repurchasing airline shares. A brick and mortar company you can make some logic out of owning the assets. With most airlines you are purchasing the revenue stream and the lease payments for the jets and facilities..and you have less cash. What do I know. I'm old. I lost my readers... OFG

Originally Posted by Carl Spackler (Post 1880460)

You might be old, but you haven't lost your readers. Both you and Timbo are spot on. Stock buybacks do only one thing, and that is to provide a floor to the stock price to ensure corporate officer stock options remain above the exercise price until they can be profitably sold by management. There is NO other reason for them.

Carl

Originally Posted by Mesabah (Post 1880467)

That's exactly right; If a company is highly profitable at lower than average P/E, it's the executives seeking a payoff.