Quote:
Originally Posted by Tyrone Slothrop
The investors, sure, but why the management?
Is there any airline that has managed this situation well, significantly better than the others? No, because demand is off across the board. Airlines have high fixed costs, and don't spend an awful lot of money to fly the planes. Is anyone surprised that taking away all their business for a long period is going to wreck them all?
|
The management did nothing to improve the business. It engaged in buybacks to jack the stock price. It created a share valuation that wasn't predicated on the underlying fundamentals of the business.
That sort of distortion is why we're going thru a depression and yet the stock market is only 15% off all time highs. Only instead of IBM buying back shit tons of its own stock, now the Fed is doing the purchasing.
Insane.
