Why the big drop in share value?
 

Any idea why the large drop in Airtran, American but most of all United shares today?

AAI down 7.52% or -$0.47 ($5.78)
AMR down 9.06% or -$0.72 ($7.23)
UAL down $21.48% or -$1.98 ($7.24)

Bad day for the market. The sector followed the big board.

Also the concerns of currency stability are rearing their ugly head. We all knew this was going to happen at the first sign of a recovery.

I expect the fed to try to combat inflationary fears. I hope they do enough. There is a lot of money out there.

uaua diluted yesterday and amr last week. uaua actually had an upgreade today.
By the way dal was down 9.15% or so if you missed it.

Crude was also up sharply yesterday...

Yeah, you're right, I just realized other airlines weren't much better.

CAL down 8.27% or -$1.36 ($15.08)
DAL down 9.15% or -$0.82 ($8.14)

Both amr and uaua recently diluted their shares so not a big suprise drop for a bit. Just throwing out some numbers but i think over the last 3 months or so uaua up 120%, dal 40%, amr 79% and cal around 63%. Don't know about you guys but if I was hitting all my stocks like that I would not be flying someone elses airplane for long.

...and

ALK down 4.93% or -$1.32 ($25.47)
JBLU down 8.53% or -$0.51 ($5.47)


An ugly day but I guess no mystery after all...

PS. I too fear the soon-to-be inflation... Maybe Zimbabwe will bail us out? :rolleyes:

Our future...


http://encikwan.com/wp-content/uploa...rency-2008.jpg

There was an article in the USA Today yesterday or Tuesday (I read both yesterday) that talked about this happening:

Airlines' debt crises averted, but risk lingers - USATODAY.com

XJT seemed to be the only stock up (20% today). They seem to act opposite of the rest of the airlines..

Probably because the real recession hasn't even started yet....

want to know the health of the economy.... watch the credit card companies.... if they're pulling back (and they are doing that big time) then things aren't anywhere close to over, in fact they haven't even begun yet... the 5 year ARM's will start comming due shortly and the new round of defaults will begin... buckle up kiddies....

At least the interest rates are low. It is the best possible situation. We will have to see if the banks are willing to forgive big chunks of these jumbo loans to keep people in the houses.

I don't think I would base the health of the economy on the credit card companies. The credit card reform bill that passed a few months back is making credit cards less profitable. I have a sneaky suspicion the banks are re-allocating that money.

People are going to read what they want to hear. Like if a girl you ask out says "maybe", one guy may think "wow, she's not really that into me" and another might think, "wow she really likes me and I think she'll go out with me"' In the same two paragraph article I read where one analyst is expecting to revisit the lows of March, while another expects a S&P at 1200 by January of '10. It's called an efficient market for a reason. Remember the recession of the 70's? Or maybe the 80's? or maybe the 90's? Or the tech bubble led recession? Where did we go after those? The Resolution Trust Corporation (RTC), led us out of the S&L crisis, then we had high inflation and double digit interest rates/inflation. Where were we the next few years after that? History repeats it's self. The sky isn't falling.

They are down because airlines are crappy stocks. Always have been. They may be a good trade (buy and sell quickly) every now and then, but they are a crappy investment (ownership for the long term).

So did she ever go out with you? ;)

[quote=⌐ AV8OR WANNABE;687677]So did she ever go out with you? ;)quote]



Only after I showed her the "size" of my "portfolio"

:D Google sized, huh? :D