Are you reading their earnings report
In such an environment to beat so narrowly and miss on Rev - only rose 4.6% YY - is not positive
Oil will drive this up and down - let us hope they buyback or do something
Delta has the chance to be one of the first companies to actually report a good Q4 and if they can provide some great guidance I don't think a 10% move is out of the question.
So your objections are that people who like to think of themselves as professionals aren't REALLY professionals. The MBAs are professionals who treat the wanna-bes well out of the goodness of their hearts, and will stop if the wanna-bes organize. I say cooperation and friendship work just fine in an organization where people genuinely know each other, but beyond a certain size, it's about power. CEO pay is about power, not extraordinary ability (effectively, in most companies, the CEO chooses the directors, who get a no-work job [well, if they happen to be conscientious, about 50 hours a year] paying about the price of a car per year. The directors set CEO compensation. The directors nominally answer to the stockholders, who are generally too fragmented to demand anything. Clever CEOs choose a diverse BoD who will only unite as a force in case of catastrophe) And for special situations you suggest what amounts to an informal union.
BTW, the CEO generally has SEVERAL houses bigger than any of the "little VPs" have.
Workers get power through unions. If too many of the workers are stupid, they may get a stupid union that breaks the company. It happens, just as stupid management breaks companies [many times as often].
I agree. I got in this stock over a year ago for all of those reasons. I am just a small time investor, who does this on the side. My holdings are not at a level that would ever jeopardize my financial security since I am not qualified to trade on that level. Just using the board to get additional information and opinions. Better than posting something totally unrelated to the stock to rile people up.
I am long on DAL and LUV. Last year the first three months were flat for most airline stocks. Little travel and people catching up on Christmas spend (plus #$%$ time to travel due to weather - my opinion). Long for the following: Air travel is still the quickest and safest way to travel. Coast to coast in one day ready for the meeting the next day. If the economy is coming around everybody wins. More travel, too. Fuel cost are projected to be low til mid of year. LUV has bought futures in fuel so they are safe at low fuel costs for 12 mos out min. DAL has own refinery so they should be ok. Jan 20 (next week) numbers come out for DAL. Only worry for me for DAL is union vote soon for attendants. The general market turndown is temporary. If you have no confidence in stock get out. Go big or go home.
Thanks for the feedback. I did forget about the ethanol credit debacle with the oil refineries a few years ago. I feel the stock has a lot more upside, just don't trust this market so much right now. Good day today though.
Refineries can be profitable regardless of the price of crude. The Trainer losses a year ago were driven by a failure in the ethanol credit market (which they must buy as they can not blend ethanol into jet fuel). That market has since normalized.
Hedges are a modest issue. In the long run they should average out (unless one is speculating as opposed to true heding).
Q4 improved both load and PRASM over '13 numbers.
On load, the domestic numbers are much improved. On PRASM, not yet known, but I suspect domestic also was much improved (as we know international was imapired by the strong dollar).
The month of Dec was off. But that is only a portion of the data and is comparing different travel weeks from last year.
Anyone else concerned that part of the stocks decline, besides the downturn in the general market, is that their fuel hedges will hurt the bottom line in the short term more than people expect? I am long on the stock, but such a precipitous decline must have decimated some of these bets to the point it will crimp earnings despite the benefit of lower fuel prices, at least in the near term. Also, I am guessing this decline will put the refinery operation in the red again in the near term.
I just don't like the current weakness in the stock. Then again it is tough to say if the weakness is all from the increase in market volatility and airline stocks hitting their 52 week highs recently, or if it is in part because of concerns over Delta's hedging costs.
Husband: What would you do if i won the lottery?
Wife: I'd take half and leave.
Husband: Well here's $6 and you can start packing anytime now.
Delta will take a hard line if u bring a union on board. I would say kiss those profit sharing checks good-by...then take a look at what the union is going to charge you...I go back to the days when Delta took over NEast, of course they were raised by union family that actually check the milk to make sure it was drinkable. My thought is this, bring a union on board Delta and you destroy the relationship. Those that compare the CEO pay to their pay need to go back to school get an education and be able to work your way up. He runs a large corporation looking out for and doing the best for his employees. I would say Delta is doing a great job for its employees. Don't try to compare your salary to the CEO, must less compare your salary to the pilot..it is all relevant to your life style..I'm saying that what you're making and with your profit sharing I suggest to you that you're doing quite well. Does the pilot live in a bigger house than you, does the vp live in a bigger house than the pilot, and the ceo lives in a bigger than all of you....what is relevant is that you are paid well for what you do and I suggest you look around at what your counterpart making and if they get a pay raise above you I bet the ceo of Delta raises your pay....the airline I was with had a union and when my airline went out of business you could not find a business agent...take my word you work for a world class carrier and a union just drives a nail between you and the relationship you have with the company. I say vote down, and why pay union dues to protect someone that needs to be gone anyway..You want to pay 75 dollars a month to keep someone on the job that is hurting you and other....NO you do not..i'm 72 and seen it all, they want your money and that is all. Tell me do you think a union could get you more than you making now. Is it hours, lay overs, rest time put a group of employees together, take your grievances to management and see if something can be done.
Anyone who works for a company and gets OOM half a percent of the CEO's compensation (here, $17MM+) is justified in asking what 'professional' means in their personal context. And when the top guy is getting a 20% annual increase and you are getting maybe 5%, it's reasonable to think about banding together with your peers to generate more leverage.
Last election was very close.
I would think the non-union vote would be stroinger this time around. Some of the old NWA (ex-union) FAs will be retired. And the profit sharing checks are in the bank.
That they signed up enough to call for a vote does not imply the union will win the vote. First, the card signing process is one sided. Second, a fair number of people will think a vote is reasonable even if they later vote no.