Your shareholders need some help here. We supposedly own the company, right? Nobody can take these 5 to 10% losses every day when, it's obvious, the "true value" of the company is not deteriorating. It's a panic
You need to try to do something for your shareholders. Now.
"Very poor management. They don't get it."
Exactly what don't "they get"? They took two of the weakest performing major airlines, put them together, made a lot of money, reduced debt and are now sitting on a ton of cash. What would you have done differently?
It is a shame the market is incapable of valuing the stock correctly. I think they should now do something about that, and I'd guess they will. But to say this is "poor management" is nuts.
I am in LCC, UAUA, and NWA and about 30% down in my account.
I am hoping for the recovery, but it looks like it might be a while. I bought them for the consolidation play and really do hope that it pans out.
"Do you still hold those stocks you bought at a buck?"
Long gone. Except for a very token amount, I was out of LCC in the $40s (just like I rarely get the bottom, I rarely get the top -- I tend to operate in the "real world," and miss the exhuberance and panics). I started buy again this summer in the high 20s ($27 if I remember correctly) and immediately made 10% on my money. And it's been straight down since then. I bought 10 times as much in the mid teens, and it's been a very painful month!
For history nuts, this is actually my third bite at this apple. In 1998, when yahoo message boards were brand new, I sold my AWA shares for a better than 100% profit and told folks here that it was insane for them to keep holding the shares given the deteriorating fundamentals at the company and the lofty share price. I called AWA the "teflon stock." It did eventually go down, and there was actually a shareholder suit saying the "public" wasn't made aware of the actual financial situation of the company (different management then). I half expected to be called as a witness in that trial -- after all I was John Q Public and I was very publicly telling folks to look at the publicly available data -- but nobody ever contacted me.
As you can see, it's quite a history. I hope the last chapter isn't me now going broke for my troubles! I'm a natural optimist though, so I'm not particularly worried.
"DONT NEED TO BE smart to say this is a LOSER.
But stocks dont lose 80% in a year and go down every day like this forever."
Unless you were on margin, it would be insane to sell the stock here. This is not a situation where "the business" has fallen apart. To the contrary, they made $185 million last quarter! Sure, the current quarter looks worse, but who's to say what it will look like 2 quarters from now? How long can oil go up simply because speculators want it to? I've never seen a better contrarian "value buy" in this sector than this, right here and right now.
And I bought at a buck (a much smaller company, of course) 4 years ago.
Yes, I agree that NORMALLY we should let the markets work, but this isn't a normal situation. The panic may be "normal" (although I've never seen anything this bad), but the resources of the company are certainly not normal. During the last conference call, several of the analysts were asking the company what they would do with its "excess cash"! It's now more than 3 times the company's market capitalization. And what company ever sells for 5 times LAST QUARTER'S earnings?
It's a historic opportunity to use those earnings to do what's right for shareholders. And what's right is to take that $185 million and buy back the stock. What else could the company possibly do better for its owners?