prosa
Posts: 5389
Joined: Sat Oct 27, 2001 3:24 am

Trading Halt In UAL Shares

Wed Mar 05, 2003 5:02 am

Cbsmarketwatch.com has just reported that trading in UAL shares has just been halted, pending a news announcement.
"Let me think about it" = the coward's way of saying "no"
 
LMP737
Posts: 4800
Joined: Wed May 08, 2002 4:06 pm

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 5:06 am

Hopefully everything is okay over at UAL.
Never take financial advice from co-workers.
 
brons2
Posts: 2462
Joined: Tue Sep 25, 2001 1:02 pm

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 5:12 am

Could this be Chapter 7????????

Hope not.
Firings, if well done, are good for employee morale.
 
prosa
Posts: 5389
Joined: Sat Oct 27, 2001 3:24 am

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 5:19 am

Whew! All the news turned out to be was an announcement that the employee pension fund can make a major stock sale. I had really thought that UA was going to liquidate, when I saw the news about the trading halt, because usually halts take place only for very big announcements. Sounds like there's still some life in UA ...
"Let me think about it" = the coward's way of saying "no"
 
searpqx
Posts: 4173
Joined: Thu Jun 29, 2000 10:36 am

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 5:20 am

The trading halt appears to be as a result of UA posting an audited $382M loss for January, and nothing as drastic as Ch 7. But thats just an assumption based on available news, I haven't seen anything saying specifically why trading was halted.
"The two most common elements in the universe are Hydrogen and stupidity"
 
LJ
Posts: 4103
Joined: Wed Nov 17, 1999 8:28 pm

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 5:39 am

when I saw the news about the trading halt, because usually halts take place only for very big announcements.

And what do you think an announcement that State Street may sell yet another 3.9 million UAL shares is? Trading halts always take place if an announcement is pending which may influence the stock price. The fact that a particular company is allowed to sell 3.9 million shares is such an announcement (share price headed south immediately).
 
Admiral Ackbar
Posts: 157
Joined: Tue May 28, 2002 2:26 am

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 5:44 am

And you got the admit that the sale of 3.9 million shares is not exactly a vote of confidence in UAL`s future.

Then again, with the way the market will be going in the near future, maybe they are liquidating several of their equity positions.
 
N79969
Posts: 6605
Joined: Tue Jan 29, 2002 1:43 am

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 5:44 am

How do UAL shares have any value at all? I thought ch 11 wiped out all shareholder equity. Further, all short positions on the stock should be closed out by now.
 
LJ
Posts: 4103
Joined: Wed Nov 17, 1999 8:28 pm

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 6:01 am

How do UAL shares have any value at all? I thought ch 11 wiped out all shareholder equity. Further, all short positions on the stock should be closed out by now.

No, shares have value untill the company is liquadated. Before that period it's how much anyone is willing to pay (currently about USD 0.97).

And you got the admit that the sale of 3.9 million shares is not exactly a vote of confidence in UAL`s future.

Yes, but it's more that State Street is probably forced to sell as they're acting as the trustee (thus are required to get as much out of the stock as possible) of the ESOP and they would like to sell more but aren't allowed (after the sale State Street still manages about 16mio UAL shares for the ESOP just above the required 20% ownership level)


 
ScottB
Posts: 5413
Joined: Fri Jul 28, 2000 1:25 am

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 6:46 am

Liquidation isn't required for the company's shares to lose all their value; the reorganization plan can also wipe out the shareholdings of all pre-bankruptcy shareowners. That's part of why I'm still amazed that UAL's shares are valued nearer to $1.00 rather than $0.10; it's pretty clear that UAL's reorganization will leave nothing for existing shareholders.

State Street has been trying to unload those essentially worthless shares for a while now; it's their fiduciary duty to try to recoup as much value as possible for the ESOP participants.
 
brons2
Posts: 2462
Joined: Tue Sep 25, 2001 1:02 pm

RE: Trading Halt In UAL Shares

Wed Mar 05, 2003 1:06 pm

3.9 million is not much money at all, for a company with as many employees as UAL.
Firings, if well done, are good for employee morale.