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Old 06-02-2022 | 08:00 AM
  #851  
The REAL Bluedriver
 
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From: Airbus Capt
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Originally Posted by Stayontarget
It’s interesting, 81 pages in and I have not seen 1 post about people losing money on the JetBlue deal based on their share price offering. They all assume at $30 you would make gobs of money as if you purchased the shares right at the bottom. I purchased some of my shares at $35 and the rest at $26. This JetBlue deal would force me to sell some shares at a loss. As a shareholder why would I want that? How is that superior again?

I have no idea where the major institutions DCA is on their SAVE shares since they have been as high as $80 and as low as $8 but I doubt all happened to buy their millions of shares with perfect timing.
You've already been told exactly why your investment strategy is at a kindergarten level, but maybe this simple illustration will drive it home.

Just to be clear, if you bought the stock of a typewriter manufacturer for $40 just before the invention of the personal computer/word processor program, and that stock had fallen to $10, and another company offered to buy your shares for $20 a share, you would vote NO and wait for your shares to go back above $40???

I'm glad you will never manage my portfolio.
Old 06-02-2022 | 08:09 AM
  #852  
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From: A320 FO
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Originally Posted by Bluedriver
You've already been told exactly why your investment strategy is at a kindergarten level, but maybe this simple illustration will drive it home.

Just to be clear, if you bought the stock of a typewriter manufacturer for $40 just before the invention of the personal computer/word processor program, and that stock had fallen to $10, and another company offered to buy your shares for $20 a share, you would vote NO and wait for your shares to go back above $40???

I'm glad you will never manage my portfolio.
Haven't you heard? You don't lose money if you HODL! It seems to be all the rage.
Old 06-02-2022 | 08:27 AM
  #853  
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Originally Posted by Bluedriver
You've already been told exactly why your investment strategy is at a kindergarten level, but maybe this simple illustration will drive it home.

Just to be clear, if you bought the stock of a typewriter manufacturer for $40 just before the invention of the personal computer/word processor program, and that stock had fallen to $10, and another company offered to buy your shares for $20 a share, you would vote NO and wait for your shares to go back above $40???

I'm glad you will never manage my portfolio.
Pretty bad analogy. The ULCC model is far from dead.
Old 06-02-2022 | 08:36 AM
  #854  
The REAL Bluedriver
 
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Originally Posted by JulesWinfield
Pretty bad analogy. The ULCC model is far from dead.
1. You mean how the two largest ULCCs have to merge because they are running out of markets that support daily service, and are already cannibalizing each other's routes that do support daily service? That's why Spirit and Frontier have so much more overlap than JB+NK.

2. The point isn't actually the typewriter or dead model, it's an illustration of how stupid it is to use your purchase price as your main data point for sell decisions. THAT was the point of the illustration.
Old 06-02-2022 | 08:45 AM
  #855  
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Originally Posted by Bluedriver

2. The point isn't actually the typewriter or dead model, it's an illustration of how stupid it is to use your purchase price as your main data point for sell decisions. THAT was the point of the illustration.
Yes. If this is someone’s real concern, sell all your SAVE stock right now, and repurchase ULCC. Problem solved.
Old 06-02-2022 | 09:00 AM
  #856  
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Originally Posted by Bluedriver
1. You mean how the two largest ULCCs have to merge because they are running out of markets that support daily service, and are already cannibalizing each other's routes that do support daily service? That's why Spirit and Frontier have so much more overlap than JB+NK.

2. The point isn't actually the typewriter or dead model, it's an illustration of how stupid it is to use your purchase price as your main data point for sell decisions. THAT was the point of the illustration.
So by that same logic, JetBlue’s business model is dead?
Old 06-02-2022 | 09:01 AM
  #857  
The REAL Bluedriver
 
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From: Airbus Capt
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Originally Posted by Lakeaffect
Yes. If this is someone’s real concern, sell all your SAVE stock right now, and repurchase ULCC. Problem solved.
Yep, doesn't matter anyway, he's a frontier pilot and probably has 11.23 shares, so even if it went back to the price he paid for it, he could hardly buy a steak dinner... The share price isn't really why he's making the argument.
Old 06-02-2022 | 09:02 AM
  #858  
The REAL Bluedriver
 
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Originally Posted by JulesWinfield
So by that same logic, JetBlue’s business model is dead?
This isn't personal Jules, please don't take my comments as such.

With that said, how so?
Old 06-02-2022 | 09:29 AM
  #859  
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Originally Posted by JulesWinfield
So by that same logic, JetBlue’s business model is dead?
No, because the Spirit brand will be discontinued.
Old 06-02-2022 | 09:45 AM
  #860  
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From: A320HD
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Originally Posted by Bluedriver
1. You mean how the two largest ULCCs have to merge because they are running out of markets that support daily service, and are already cannibalizing each other's routes that do support daily service? That's why Spirit and Frontier have so much more overlap than JB+NK.
Where’d you get this analysis? If true why wouldn’t F9/NK just expand into those non-overlapping JB markets. Our (NK) growth has been either airframe or crew (or both) constrained since this ULCC thing started. Never heard we don’t have any more markets. For the record I’m not hitched to either merger.
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