US Airways Group Inc. said Today it has made an $8 billion cash and stock offer for Delta Air Lines Inc. in a deal that would create one of the world's largest airlines.
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Question:
Would this be a great time to start purchasing "DALRQ" ???
2006-11-15 00:00:32 · 4 answers · asked by RichDad 1 in Business & Finance ➔ Investing
Agreed, it'd be speculative. In general, when a company comes out of bankruptcy, the shares before the bankruptcy become worthless.
That said, it's up to you. US Airways made a bid for DL at 25% premium. Are you willing to risk 100% for a potential 25% return?
If you want to trade an airline, you might consider AMR, or CAL, or JBLU while are solvent companies currently looking seasonally strong.
Good luck!
2006-11-15 01:12:47 · answer #1 · answered by Yada Yada Yada 7 · 2⤊ 0⤋
No.
You are aware US Airways does not have $4,000,000,000.00 USD to pay for Delta, right?
In fact, the entire US Airways is worth about $5 Billion and somebody rich enough could buy it and get Delta for FREE.
2006-11-15 09:50:34 · answer #2 · answered by Anonymous · 0⤊ 1⤋
It would be what we call speculation if you bought in. You could make a nice killing or you could lose your shirt.
2006-11-15 00:02:24 · answer #3 · answered by angrysandwichguy1 3 · 0⤊ 0⤋
If you want to speculate, go ahead.
2006-11-15 02:47:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋