Spirit of NKS
07-31-2012, 02:58 PM
#4351
Gets Weekends Off
Joined APC: Feb 2007
Position: A320 CA
Posts: 944
07-31-2012, 03:03 PM
#4352
Banned
Thread Starter
Joined APC: Oct 2008
Posts: 1,857
like 12mil shares
08-01-2012, 03:33 AM
#4353
Gets Weekends Off
Joined APC: Aug 2011
Posts: 167
So this will cause the stock price to drop, right? (down %-3.5 in after hours )
Last edited by LineHolder; 08-01-2012 at 03:46 AM.
08-01-2012, 08:48 AM
#4354
Gets Weekends Off
Joined APC: Mar 2009
Posts: 148
The stock price typically drops when more stock is issued into the float (publicly traded stock). By selling off their remaining stake of roughly 9.3 million shares, it effectively devalues the holdings of existing stockholders.
So, why would they do this? Well, they're most likely just cashing out and taking profits. However, dilution can occur when a company may have interest from a potential buyer. If Oaktree feels that NK is overvalued from a market cap perspective, they could sell their remaining stock. By selling off their remaining stake, it will lower the stock price and possibly create an opportunity for a buyer to offer a premium for NK stock. NK's market cap is roughly $1.5 billion.
This happened when AirTran was sold to Southwest (Guadalupe Holdings). Credit Suisse quietly issued AirTran stock into the float. The stock price dropped. Southwest came in and offered AirTran's stockholders a premium for their stock. A sale was commenced.
The opposite occurs when a company 'buys back' their own stock. It removes stock from the float, inflating the value of existing holdings causing the stock price to rise. This tactic could be used when a company wants to secure more control, or make their company more expensive to purchase, or to prevent a hostile takeover scenario.
Ownership can influence their own company's stock price simply by manipulating the float...either by selling off large chunks of stock (dilution), or by repurchasing their own company's shares.
Last edited by ALPO Whisperer; 08-01-2012 at 09:24 AM.
08-01-2012, 09:31 AM
#4355
Banned
Thread Starter
Joined APC: Oct 2008
Posts: 1,857
The stock price typically drops when more stock is issued into the float (publicly traded stock). By selling off their remaining stake of roughly 9.3 million shares, it effectively devalues the holdings of existing stockholders.
So, why would they do this? Well, they're most likely just cashing out and taking profits. However, dilution can occur when a company may have interest from a potential buyer. If Oaktree feels that NK is overvalued from a market cap perspective, they could sell their remaining stock. By selling off their remaining stake, it will lower the stock price and possibly create an opportunity for a buyer to offer a premium for NK stock. NK's market cap is roughly $1.5 billion.
This happened when AirTran was sold to Southwest (Guadalupe Holdings). Credit Suisse quietly issued AirTran stock into the float. The stock price dropped. Southwest came in and offered AirTran's stockholders a premium for their stock. A sale was commenced.
The opposite occurs when a company 'buys back' their own stock. It removes stock from the float, inflating the value of existing holdings causing the stock price to rise. This tactic could be used when a company wants to secure more control, or make their company more expensive to purchase, or to prevent a hostile takeover scenario.
Ownership can influence their own company's stock price simply by manipulating the float...either by selling off large chunks of stock (dilution), or by repurchasing their own company's shares.
08-01-2012, 10:07 AM
#4357
Gets Weekends Off
Joined APC: Mar 2009
Posts: 148
08-01-2012, 04:41 PM
#4358
Gets Weekends Off
Joined APC: Feb 2011
Posts: 157
I'm thinking I'm glad we didn't trade QOL or pay for stock options. Seems the real issue now is Scope.
At least I understand cables and bell-cranks so transition training back to the 9 will be a breeze.
Pumps on High Descent Check!
At least I understand cables and bell-cranks so transition training back to the 9 will be a breeze.
Pumps on High Descent Check!
08-01-2012, 06:35 PM
#4359
Gets Weekends Off
Joined APC: Jan 2008
Position: 319/320/321...whatever it takes.
Posts: 492
Yes. Its called 'dilution.'
The stock price typically drops when more stock is issued into the float (publicly traded stock). By selling off their remaining stake of roughly 9.3 million shares, it effectively devalues the holdings of existing stockholders.
So, why would they do this? Well, they're most likely just cashing out and taking profits. However, dilution can occur when a company may have interest from a potential buyer. If Oaktree feels that NK is overvalued from a market cap perspective, they could sell their remaining stock. By selling off their remaining stake, it will lower the stock price and possibly create an opportunity for a buyer to offer a premium for NK stock. NK's market cap is roughly $1.5 billion.
This happened when AirTran was sold to Southwest (Guadalupe Holdings). Credit Suisse quietly issued AirTran stock into the float. The stock price dropped. Southwest came in and offered AirTran's stockholders a premium for their stock. A sale was commenced.
The opposite occurs when a company 'buys back' their own stock. It removes stock from the float, inflating the value of existing holdings causing the stock price to rise. This tactic could be used when a company wants to secure more control, or make their company more expensive to purchase, or to prevent a hostile takeover scenario.
Ownership can influence their own company's stock price simply by manipulating the float...either by selling off large chunks of stock (dilution), or by repurchasing their own company's shares.
The stock price typically drops when more stock is issued into the float (publicly traded stock). By selling off their remaining stake of roughly 9.3 million shares, it effectively devalues the holdings of existing stockholders.
So, why would they do this? Well, they're most likely just cashing out and taking profits. However, dilution can occur when a company may have interest from a potential buyer. If Oaktree feels that NK is overvalued from a market cap perspective, they could sell their remaining stock. By selling off their remaining stake, it will lower the stock price and possibly create an opportunity for a buyer to offer a premium for NK stock. NK's market cap is roughly $1.5 billion.
This happened when AirTran was sold to Southwest (Guadalupe Holdings). Credit Suisse quietly issued AirTran stock into the float. The stock price dropped. Southwest came in and offered AirTran's stockholders a premium for their stock. A sale was commenced.
The opposite occurs when a company 'buys back' their own stock. It removes stock from the float, inflating the value of existing holdings causing the stock price to rise. This tactic could be used when a company wants to secure more control, or make their company more expensive to purchase, or to prevent a hostile takeover scenario.
Ownership can influence their own company's stock price simply by manipulating the float...either by selling off large chunks of stock (dilution), or by repurchasing their own company's shares.
I know what you're saying, but you are using the term 'dilution' wrong. Say a company issues 1 million shares of stock ar their IPO. A year later, they want to make some more money, so they issue another 500k of shares of stock. That is dilution. They are diluting the stock value by having more of them.
Stock dilution - Wikipedia, the free encyclopedia
When an investor sells off a large amount of stock (that was already issued), the market does respond with a lower price, but it is because of supply and demand forces. Say a stock sells for $10. If I have 1000 stock and I want to sell some, I put a sell order onto the market. Maybe people are willing to buy 200 shares at $10. Another group are willing to buy 200 more shares for $9. Another group may only want to pay $8 for it, etc. If the investor wants to get rid of all of his stock, he will have to take what someone is willing to pay for it. When all of the people who are willing to pay $10 are gone, the "value" of the stock (what someone is willing to pay for it) goes down. Spirit stock went down a little for those reasons, not dilution.
I agree with you that Oaktree is profit taking, and I dont see us as a takeover target in the near future. But I am usually wrong.
08-02-2012, 04:46 AM
#4360
Line Holder
Joined APC: Jul 2008
Posts: 44
Yes. Its called 'dilution.'
The stock price typically drops when more stock is issued into the float (publicly traded stock). By selling off their remaining stake of roughly 9.3 million shares, it effectively devalues the holdings of existing stockholders.
So, why would they do this? Well, they're most likely just cashing out and taking profits. However, dilution can occur when a company may have interest from a potential buyer. If Oaktree feels that NK is overvalued from a market cap perspective, they could sell their remaining stock. By selling off their remaining stake, it will lower the stock price and possibly create an opportunity for a buyer to offer a premium for NK stock. NK's market cap is roughly $1.5 billion.
This happened when AirTran was sold to Southwest (Guadalupe Holdings). Credit Suisse quietly issued AirTran stock into the float. The stock price dropped. Southwest came in and offered AirTran's stockholders a premium for their stock. A sale was commenced.
The opposite occurs when a company 'buys back' their own stock. It removes stock from the float, inflating the value of existing holdings causing the stock price to rise. This tactic could be used when a company wants to secure more control, or make their company more expensive to purchase, or to prevent a hostile takeover scenario.
Ownership can influence their own company's stock price simply by manipulating the float...either by selling off large chunks of stock (dilution), or by repurchasing their own company's shares.
The stock price typically drops when more stock is issued into the float (publicly traded stock). By selling off their remaining stake of roughly 9.3 million shares, it effectively devalues the holdings of existing stockholders.
So, why would they do this? Well, they're most likely just cashing out and taking profits. However, dilution can occur when a company may have interest from a potential buyer. If Oaktree feels that NK is overvalued from a market cap perspective, they could sell their remaining stock. By selling off their remaining stake, it will lower the stock price and possibly create an opportunity for a buyer to offer a premium for NK stock. NK's market cap is roughly $1.5 billion.
This happened when AirTran was sold to Southwest (Guadalupe Holdings). Credit Suisse quietly issued AirTran stock into the float. The stock price dropped. Southwest came in and offered AirTran's stockholders a premium for their stock. A sale was commenced.
The opposite occurs when a company 'buys back' their own stock. It removes stock from the float, inflating the value of existing holdings causing the stock price to rise. This tactic could be used when a company wants to secure more control, or make their company more expensive to purchase, or to prevent a hostile takeover scenario.
Ownership can influence their own company's stock price simply by manipulating the float...either by selling off large chunks of stock (dilution), or by repurchasing their own company's shares.
I think they are just getting out of the Spirit thing, but I can't help to question why they do it at the point where Spirit is profitable with a good looking future.
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