stupid prices bankruptcy

[mage lang="en|de|en" source="flickr"]stupid prices bankruptcy[/mage]
What does it mean by equity stakeholder's negative? ?

It is true that UAL stock prices due to its markedly over rumors Insolvency of the company? while it is declining stock prices, has his rivals Delta and Northwest are doing well? UAL, which happen by such silly rumors? Why airline industry stock prices fluctuate over time? I mean, what makes stock prices over time, be changed?

UAL, like all other airlines are struggling in the past year because of record high fuel prices. However, the stock price has basically followed the performance of other airlines, although it suffered has a bit more. Has the same time, the stock all competitors in the last three months exceeded. Basically, negative equity occurs when the company End up with more debt than assets has, ie it is highly leveraged and little financial leeway. The company is expecting up to $ 9,25 per share loss this year, or about 1.2 billion U.S. dollars. If oil prices return to high levels, UAL was the poor performance, in fact, the demise of the company, as it will be drawing on its cash its losses because it will generate a further increase in negative equity. Other airlines are performing better than UAL, just because they in a better financial situation are, and they have a lower risk of insolvency. When UAL was in serious danger of bankruptcy, the stock would not correlate at all with its competitors, such as it is lagging its competitors in the past year, there are still traces mainly the power, and it would be trading at less than $ 10 per share. I would not recommend the trouble with the airlines as an investment in this current environment, which is OPEC – a reduction in production to support oil prices and the dollar increase in comparison to other currencies, not least, which means airlines could run into trouble if oil prices rise to resume. Where investments are a lot better out there now with much less risk. As far as what airline stocks, the simple explanation of the oil price affects how it is the largest Effort. Apart from this, there are factors such as government regulation, economic factors and other industrial factors. Below, I have a chart of the price of several major airlines are included as well as the USO, which tracks the price of oil. The negative relationship between oil and airline shares is easy to recognize. Just a few thoughts I hope they helped.

The Young Turks are Clueless, Part 5 of 4076

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Leave a comment

Your comment