The plan going forward
10-04-2024, 09:09 AM
#521
Gets Weekends Off
Joined APC: Dec 2022
Posts: 895
“While often used interchangeably, "a piece of stock" is essentially the same as "a piece of the company" - meaning a share of ownership in a company, but it's important to remember that a stock is not a physical part of the company itself, but rather a representation of ownership rights in the company's assets and profits; when you buy a stock, you become a partial owner of the company, not a literal piece of its physical property.”
https://www.investopedia.com/terms/s/stock.asp
https://www.schwab.com/stocks/unders...common%20stock.
A company or any assets is only worth what somebody is willing to pay for it. Not sure what point you’re trying to make.
https://www.investopedia.com/terms/s/stock.asp
https://www.schwab.com/stocks/unders...common%20stock.
A company or any assets is only worth what somebody is willing to pay for it. Not sure what point you’re trying to make.
10-04-2024, 09:19 AM
#523
Gets Weekends Off
Joined APC: Nov 2022
Posts: 241
I'm not an expert, but if the stock goes to zero isn't it implying that there isn't any difference between spirits assets and its liabilities? If something has 500 million worth of airplanes, but 500 million worth of debt it isn't worth anything right? Again I really am just trying to understand here.
10-04-2024, 09:21 AM
#524
Gets Weekends Off
Joined APC: Jun 2018
Position: Sitting
Posts: 512
I'm not an expert, but if the stock goes to zero isn't it implying that there isn't any difference between spirits assets and its liabilities? If something has 500 million worth of airplanes, but 500 million worth of debt it isn't worth anything right? Again I really am just trying to understand here.
10-04-2024, 09:25 AM
#525
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 40,275
1. The perceived value of the stock itself as an investment. If the stock is potentially getting wiped out in BK (being unsecured), it could trade near zero. Even if the company still has value to other people (secured creditors, or possibly a buyer arranged through BK proceedings).
2. The risk and hassle a buyer would assume by trying to acquire the company on the open market so as to access the actual value (assets minus debt). Right now the risk (and hassle) would be high, although a purchase could be arranged under the auspices of the BK court. Transactions made, or obligations incurred, AFTER BK is filed cannot be discharged in that proceeding.
10-04-2024, 09:25 AM
#526
Gets Weekends Off
Joined APC: Oct 2018
Posts: 180
Book Value of Spirit is around $7.30/share last quarter, FWIW. After this quarters losses that could significantly erode however. The book value was $33/share before covid.
10-04-2024, 09:31 AM
#527
New Hire
Joined APC: Feb 2024
Posts: 5
I was lucky the first time, don't think I can't get lucky again with the second round of furloughs...
10-04-2024, 09:55 AM
#528
Gets Weekends Off
Joined APC: Mar 2022
Posts: 502
Wouldn't a judge be instructing to sell assets to pay debtors? I guess all of that can be negotiated, not sure how it works.
10-04-2024, 10:04 AM
#529
Gets Weekends Off
Joined APC: Jun 2006
Posts: 1,480
https://www.airwaysmag.com/new-post/...uptcy-isnt-bad
This has some of the answers you’re looking for and why ch11 isn’t necessarily a bad choice.
10-04-2024, 10:33 AM
#530
Bent over by buybacks
Joined APC: Feb 2017
Posts: 825
so could someone in theory buy all Spirit stock for say, 150M?
seems like gaining a controlling interest and breaking up/selling off pieces would be quite lucrative at this price.
How much is the HQ building alone worth?
seems like gaining a controlling interest and breaking up/selling off pieces would be quite lucrative at this price.
How much is the HQ building alone worth?
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