Carl Spackler

You're probably right on this Super. I'm trying to recall something here and maybe you can help me. Has there been a single post thus far from a DAL pilot saying that the DAL proposed list was unfair or extreme? If there has been, I don't remember it.

Carl

Scoop

Carl,
Hypothetically, if a DAL pilot did agree with you on this he would be a fool to post it here - we have already seen some of the crap that the lawyers on both sides introduced into the hearings - would a post from this site be such a far stretch? I can see it now - "Your noble eminence we, the lawyers of Cheatem, Screwem, and Billem would like to introduce the following into evidence - a pilot, lets call him by his Avatar, Dragonballs87, has said on Airlinepilotcentral that the DAL proposal was unfair and extreme. There you have it, thats as close to the burning bush as your going to get - we rest out case. OBTW, we had to go through every thread ever posted in detail, so you may see a slight bump in billable hours - please dont be alarmed, we assure you that all of our lawyers have in fact been averaging 19.5 hours a day, 7 days a week on your case commencing 6 months before the merger was even announced. After all our motto is our name - Cheatem, Screwem, and Billem."

Also your market cap analysis is weak - using that logic SWA is worth about twice the combined value of NW and DAL added together.

Scoop

Carl Spackler

That's a very funny analogy Scoop, but somehow I don't think an internet posting would even be allowed into the record. And if it was it would go something like this: "OK counselor, (deep sigh) if it makes you feel better...I'll allow it."

The reason I ask is that I've posted many times that I think a Date of Hire list would be unfair to the DAL pilots without huge (and I mean huge) fence protection for the DAL guys. I remember at least one other NWA guy who agreed with me. I still stand by that opinion. I find it interesting that not even one DAL guy would post a negative opinion regarding the DAL proposal.

Market cap analysis is not weak at all. It is THE way to value an enterprise. All other methods are BS and/or someone's opinion. Also, you're wrong about SWA being worth twice the combined value of NWA and DAL. SWA is worth about what the ENTIRE major airline group is worth COMBINED. Any objective view of SWA's balance sheet versus the majors balance sheet would make you agree.

Carl

Justdoinmyjob

Because at the end of the day, most of us know it's not going to be the final outcome and it's not worth the effort to get the tighty whiteys in a bunch over.

That said, I'm sure that when we hear about NW's DOH proposal, that all kinds of indignant posts will flow here and on the ALPA forum by guys who have too much free time on their hands and not the good sense to go outside and do something healthy. And I will treat them the same way I treated all the previous ones about the DL proposal by the NWers: Like so many farts in the wind.

Carl Spackler

Wasn't that a song?

Farts in the wiiiinnnnddd...all we are is farts in the wind....

Carl

satchip

Carl you are only telling half of the story with market cap. Now for the rest of the story.

NWA: Key Statistics for NORTHWEST AIRLINE - Yahoo! Finance
DAL: Key Statistics for DELTA AIR LINES NEW - Yahoo! Finance

What Does P/B Tell Us?
For value investors, P/B remains a tried and tested method for finding low price stocks that the market has neglected. If a company is trading for less than its book value (or has a P/B less than 1), it normally tells investors one of two things: either the market believes the asset value is overstated, or the company is earning a very poor (even negative) return on its assets.

If the former is true, then investors are well advised to steer clear of the company's shares because there is a chance that asset value will face a downward correction by the market, leaving investors with negative returns. If the latter is true, there is a chance that new management or new business conditions will prompt a turnaround in prospects and give strong positive returns. ( I think that was Pineapple's point). Even if this doesn't happen, a company trading at less than book value can be broken up for its asset value, earning shareholders a profit.

Look at the price/book ratio. Look at the rest of the fundamentals. Delta beats NW in almost every category. Yes you have more cash and less debt but NW has not purchased a new airplane in a coon's age. (that's one of those southern terms you Yankees are going to have to learn).

Now my point is not to start another ****ing contest about who's company is better. This is not to put NW down. It's just an answer to your mantra about market cap. There are several ways to measure the health and value of a corp. Cherry picking one is an ineffective argument.

We have had our turn, now it's yours. I can't wait to read the transcripts of the next round. It's getting kinda boring around here.

Reroute

The 737-700 is configured with 124 seats, but is certified for 149, which is more than the DC-9-50. The 737-700 also has a higher MTOW, significantly greater range and performance and most importantly, a 737-700 position has more value than a DC-9 position because it pays significantly more.

chuck h

Not nearly enough NWA guys junior to me. Now you have a DAL guy on record saying something negative about our proposed list.







(relax people, only a joke)

Carl Spackler

Since I'm also not interested in yet another "contest", I'll close by saying this: The price tag of ANY company is the stock price multiplied by the shares outstanding. That's not arguable. There are plenty of metrics (such as PB) that can make an investor decide what the price tag should be, but the collective desires of all investors are shown every day in the closing price. If you obtain 100% of the shares of DAL at 9 bucks per share, you own the company. You have paid the price tag's price.

Arguing against market cap is like arguing against the price tag of an item at Wal-Mart. The item is worth what the price tag says its worth.

Carl

finis72

Yeah,let's get back to the "Smoking Blue Giants" or was that another thread.