ULCC or American?
03-12-2020, 11:14 AM
#141
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,152
Originally Posted by senecacaptain
Spirit has 68M shares outstanding. It is basically a micro-cap/small-cap stock.
UAL (down 20% by the way) has 247M shares outstanding.
Exits out of airline stocks "hurt" the share prices of the smaller companies more than the bigger companies, all things being equal.
On the flip side, Spirit/etc do not have 25,000 employees on payroll, or 50 787's that are sitting around. Flying half full Airbus's FLL to San Juan is different than empty 777s to China.
UAL (down 20% by the way) has 247M shares outstanding.
Exits out of airline stocks "hurt" the share prices of the smaller companies more than the bigger companies, all things being equal.
On the flip side, Spirit/etc do not have 25,000 employees on payroll, or 50 787's that are sitting around. Flying half full Airbus's FLL to San Juan is different than empty 777s to China.
There's a reason why investors are exiting SAVE a bit faster than the legacies and it has nothing to do with being a small cap.
The good news is that the NY Fed just basically wrote a blank check for unlimited liquidity into the markets (let's just call it QE on steroids) so that there should be credit available for most companies.
Let's not play the 'my airline's feces doesn't stink' game. Every airline's feces stinks terribly right now.
03-12-2020, 11:17 AM
#142
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Joined APC: Nov 2019
Posts: 1,256
Originally Posted by Andy
Spirit's selling off in part because they have huge planned CapEx. Spirit's taking delivery of 48 a320neos in 2020/21, with a ~$1B price tag for 2020. From Spirit's last earnings report: Spirit ended the year with unrestricted cash, cash equivalents, and short-term investments of $1.1 billion.
There's a reason why investors are exiting SAVE a bit faster than the legacies and it has nothing to do with being a small cap.
The good news is that the NY Fed just basically wrote a blank check for unlimited liquidity into the markets (let's just call it QE on steroids) so that there should be credit available for most companies.
Let's not play the 'my airline's feces doesn't stink' game. Every airline's feces stinks terribly right now.
There's a reason why investors are exiting SAVE a bit faster than the legacies and it has nothing to do with being a small cap.
The good news is that the NY Fed just basically wrote a blank check for unlimited liquidity into the markets (let's just call it QE on steroids) so that there should be credit available for most companies.
Let's not play the 'my airline's feces doesn't stink' game. Every airline's feces stinks terribly right now.
"why" they exit, who knows. You provided a great reason they may be exiting.
I was discussing "why" the impact to the stock price
03-12-2020, 11:22 AM
#143
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,152
Originally Posted by senecacaptain
nobody said investors are exiting SAVE because it is a small cap.
"why" they exit, who knows. You provided a great reason they may be exiting.
I was discussing "why" the impact to the stock price
"why" they exit, who knows. You provided a great reason they may be exiting.
I was discussing "why" the impact to the stock price
03-12-2020, 11:24 AM
#144
Gets Weekends Off
Joined APC: Nov 2019
Posts: 1,256
Originally Posted by Andy
If you're suggesting that a small cap is going to fluctuate more than a large cap stock, I can provide reams of examples that disprove that argument. The percentage decline in SAVE is steeper due to liquidity concerns in a coronavirus world. SAVE is assessed by investors based on its peer group. It has nothing to do with its market cap.
"why" investors sell or buy are based on a variety of things. Which I do not claim to know. Price knows all.
03-12-2020, 02:40 PM
#148
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Joined APC: Jan 2018
Posts: 1,788
Originally Posted by Aeirum
I find it interesting to watch the optimism amongst pilots working for spirit et al. ULCC’s are hit the hardest on the stock market, yet some people claim that the business model is recession proof.
03-12-2020, 02:52 PM
#149
Gets Weekends Off
Joined APC: Mar 2017
Posts: 270
Originally Posted by Aeirum
I find it interesting to watch the optimism amongst pilots working for spirit et al. ULCC’s are hit the hardest on the stock market, yet some people claim that the business model is recession proof.
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