Delta has plans to renovate 100 of its 477 jets for long-haul routes. They feel this will attract perk-loving long-haul fliers.
Would this be an excellent time to buy its stocks?
2006-06-19 03:38:54 · 14 answers · asked by butler 1 in Business & Finance ➔ Investing
Thanks to all answers!
2006-06-19 03:58:18 · update #1
No.
Delta is in Chapter 11 bankruptcy.
It's stock is currently trading on the bulleting board or pink sheets. When Delta emerges from bankruptcy (I don't know the schedule for the proceedings, but it could be several years based on the United and US Air experiences), the existing stock will be cancelled (made worthless) and equity (stock) in the reorganized company will be largely owned by the current creditors.
In other words, nothing the company does now will have a meaningful impact on the value of the current stock, although the current stock price will fluctuate (largely as a result of speculative trading activities).
2006-06-19 04:32:42 · answer #1 · answered by TJ 6 · 0⤊ 0⤋
Many people on business fly on airplanes every day, but the fact is that the stock is falling from rising ticket rates as an effect of gas prices. More people nowadays feel it's more affordable for driving. Another thing to consider: the stock looks like it would be effective during holiday seasons and summer vacation, but more people are taking road trips because of the ticket rates. You might also want to research the airliners if you're interested in buying the stock. Try looking to see who's still #1 and who has the most hubs.
2006-06-19 03:45:01 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Your decision on Delta stock depends on how much money you're willing to risk. Right now all airlines are having difficulty making money, and as you well know, Delta is in big trouble. Historically, companies going into bankruptcy don't pay anything to their original shareholders when they emerge from it. Instead, they "wipe out" all their old debt (and their old shares), and create "new" stock. Sometimes they even give the old shareholders a few of the new shares--but often they don't, and the stock that people bought in the "old" company becomes worthless.
Are you willing to risk losing your investment that way on the chance that Delta won't do this? If so, then go ahead and invest as much as you're willing to risk!
2006-06-19 04:29:34 · answer #3 · answered by barbiehow 3 · 0⤊ 0⤋
That depends. The company is on the ledge of bankruptcy from which it likely would cease to exist. The question for you it if you think they will survive long term then yes buy it, as it should be a good value stock.
If you don't believe they will stay out of bankruptcy then you answer is no way, unless you are looking for an investment loss to offset a gain you have on another stock.
2006-06-19 03:51:26 · answer #4 · answered by Thrasher 5 · 0⤊ 0⤋
With all the risk factors like rising fuel price, bird flu, terror attack, why do you still want to invest in airlines while their stock prices are not in such as a low level to justify the risk that you have to take? If you really have some money to invest, do buy those oil companies.
2006-06-24 03:16:47 · answer #5 · answered by r11567 4 · 0⤊ 0⤋
1
2017-03-01 01:09:37 · answer #6 · answered by ? 3 · 0⤊ 0⤋
Don't ever buy any airline stocks, the industry is notorious for being bankrupt!!!! They never make any pure profits!!!
2006-06-19 03:42:29 · answer #7 · answered by peachmonk 4 · 0⤊ 0⤋
i personally feel any attempt to suckle the profit of airlines is vain.
they're a risk for a while.
u should wait until alternate fuel sources have made more than an appearance into our economy.
2006-06-19 03:41:02 · answer #8 · answered by Pipi 4 · 0⤊ 0⤋
I fly with them bc they are cheap. I wouldnt buy their stock though if they have been bankrupt, but I know nothing about stock
2016-05-20 02:13:23 · answer #9 · answered by Anonymous · 0⤊ 0⤋
You don't really think Osama Bin Laden is having a Piña Colada on a Mexican Beach right now, do you?
2006-06-25 20:44:12 · answer #10 · answered by Anonymous · 0⤊ 0⤋