Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Shares Of UAL  
User currently offlineN79969 From , joined Dec 1969, posts, RR:
Posted (11 years 7 months 3 weeks 1 day 19 hours ago) and read 812 times:

How is that they still have value at all? I thought shareholder equity is reduced to zero after a Ch. 11 filing.

11 replies: All unread, jump to last
 
User currently offlineN79969 From , joined Dec 1969, posts, RR:
Reply 1, posted (11 years 7 months 3 weeks 1 day 19 hours ago) and read 787 times:



Here is what I mean:

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B261B8B5E%2D3ACB%2D40AF%2DB308%2D1B10F77213E2%7D


User currently offlineN79969 From , joined Dec 1969, posts, RR:
Reply 2, posted (11 years 7 months 3 weeks 23 hours ago) and read 736 times:


This must be a stumper. I really would love to know if anyone can answer....need to bring it back to the top.


User currently offlineN751PR From United States of America, joined May 2002, 1248 posts, RR: 1
Reply 3, posted (11 years 7 months 3 weeks 8 hours ago) and read 712 times:

Looks like its now my 2 shares on UA is now 2.42. I fell so rich now.


Ladies and Gentlemen it's happy hour.You will get two approaches for the price of one.
User currently offlineUnited777 From United States of America, joined May 1999, 1657 posts, RR: 0
Reply 4, posted (11 years 7 months 3 weeks 7 hours ago) and read 704 times:

As of right now UAL is at 1.21 and gained +.14 today in the market.

User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 5, posted (11 years 7 months 3 weeks 7 hours ago) and read 704 times:

Chapter 11 does not automatically invalidate the stock. It can, but it doesn't automatically.

N


User currently offlineB747-437B From , joined Dec 1969, posts, RR:
Reply 6, posted (11 years 7 months 3 weeks 3 hours ago) and read 696 times:

Most of the gains are from speculators closing out their short positions. Many of them probably had triggers around the $1 mark, but the sheer volume of shorts closing was enough to bounce the price significantly. It will probably continue for a few more days and then show the expected decline.

UAL stock is worthless. Whatever way you look at it, there is no way they can emerge from Chapter 11 without either invalidating or severely diluting the equity.


User currently offlineBizJets From France, joined Jun 2005, 0 posts, RR: 0
Reply 7, posted (11 years 7 months 3 weeks 3 hours ago) and read 690 times:

Ironically, when a company goes bankrupt,they're are people looking to buy shares. This is mostly SHORTS covering their positions. Like me.  Smile

User currently offlineN79969 From , joined Dec 1969, posts, RR:
Reply 8, posted (11 years 7 months 3 weeks ago) and read 670 times:

Thanks for the responses. My follow up is then why is the price anything other than zero? If one shorts a stock, the price is driven down. I guess I don't understand the 'bounce' that is keeping the stock over zero.

User currently offlineB747-437B From , joined Dec 1969, posts, RR:
Reply 9, posted (11 years 7 months 2 weeks 6 days 23 hours ago) and read 659 times:

The bounce comes from people BUYING UAL to cover the short positions in their portfolio.

A short sale essentially sells stocks that you don't already own in the anticipation of the price falling. However, you eventually have to BUY the stock at that lower price to realize your profits and close out your position. This closeout buying is what is driving the stock up right now.


User currently offlineN79969 From , joined Dec 1969, posts, RR:
Reply 10, posted (11 years 7 months 2 weeks 6 days 22 hours ago) and read 649 times:

-437B,

Thank you very much for that great explanation. That is tremendously helpful.


User currently offlineELAL 744 From Israel, joined Jun 2000, 170 posts, RR: 2
Reply 11, posted (11 years 7 months 2 weeks 6 days 18 hours ago) and read 627 times:
Support Airliners.net - become a First Class Member!

Isn't it time for all of you who expressed so much confidence in United's resurection to buy in - while the stock is low?


Vercere bracis meis
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
UBS Has 19% Shares Of Air Berlin.. posted Wed Feb 18 2009 02:52:02 by Beaucaire
Any Chance Of UAL Mainline ORD-ORF? posted Wed Dec 5 2007 16:38:34 by Highliner2
Germany Buys Shares Of Eads posted Thu Oct 12 2006 14:32:52 by Columba
Northrop Grumman To Buy Shares Of Eads? posted Sun Oct 8 2006 16:52:52 by Columba
Current Count Of UAL 747 posted Wed Aug 17 2005 18:03:15 by AS739X
What Are The Chances Of UAL Mainline To MDW posted Sat Apr 16 2005 21:13:24 by GalvanAir777
Thanks For Flying The Friendly Skies Of UAL posted Thu Feb 5 2004 15:39:03 by Sevenair
In Defense Of UAL posted Tue Dec 9 2003 05:49:00 by Mariner
CO "outraged" At Sale Of UAL LHR Slots To BA posted Thu Oct 16 2003 00:30:49 by STT757
The Status Of UAL's B 747-200s posted Tue Feb 5 2002 05:54:46 by United Airline