- Spain and Italy Could Keep Borders Closed till Christmas or Later by MtM
- Air Mauritius Enters Voluntary Administration by OMaaT
- United Airlines sells $1 billion of stock in fresh move to weather pandemic by Reuters. Lucky that United did those stock buy backs when the stock was trading at $95+.
- Expedia Reportedly Near Deal To Sell $1 Billion Stake To Silver Lake And Apollo by PYMNTS.
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Popular posts from yesterday:
Do people really believe that only 200,000, 180,000, and 760,000 people in Spain, Italy, and the US have been exposed to the “novel” coronavirus? These are countries with populations of 47M, 60M, and 328M. The official infection rates are .4%, .3%, and .2%.
Sorry everyone, but it ain’t “novel” no mo, and the official counts are BS. I would be willing to bet my multi-million dollar net worth that well over half the populations of each country has been exposed. Some got sick, a few died, but the vast majority went on with their life but remain stuck in government-imposed lock-downs that accomplished nothing.
such ignorance
How can I downvote someone’s comment lol. This is such bait. All I’ll say is you haven’t accounted for enough time for all the people whoa re going to get sick to actually get sick. And if you think the lock-downs are doing nothing, then you should go volunteer at a hospital since you’re so healthy and immune.
the point of lockdowns is to slow the spread, but the cost is economic ruin. you realize lockdowns wont stop people from eventually getting corona, that happens instead through herd immunity, which is why we should be structuring it so the young and healthy people are primarily the ones being exposed. you dont think we can stay locked down for 18 months before a vaccine comes, do you? lockdowns just delaying the inevitable, they arent eliminating the virus. not one public health official has said they think lockdowns will make the virus disappear, they say it slows the spread. let the healthy and young go back to work, practice social and physical distancing so that the spread is controlled, and leave the sick and vulnerable in isolation.
DoC, where is your evidence that United bought back its own stock at a price of $95 or higher? United stock price only topped $90 for a few days in the last three years.
Expedia getting financing means more time to use up those Hotels.com gift cards
Probably not a bad idea to use up our USPS stamps as well –
You should change that headline to “Spain & Italy MAY Keep Borders Closed.” Honestly, at this point no one knows ANYTHING about border openings. It’s a reason why I would be reluctant to book any foreign travel for summer right now — regardless of price. Now if you get an incredible deal that comes with a guaranteed change — or you think you could get a refund from your credit card issuer — I suppose you could take a gamble. But no one actually knows what will happen for the next few months. And, of course, once borders open, everyone’s individual “comfort level” will be different.
From a planning perspective, most experts believe there will be few new COVID-19 cases in the USA by early June. If that’s the case, domestic summer travel — at least those in non-high-risk groups and those not prone to disease panic — will be possible. That’s what I would focus on. But I would make sure everything is fully refundable and changeable. There is still extreme uncertainty as to what the virus story will be — and how humans will be reacting to it (like what will be open). I am expecting strong demand to “rural” places (especially national parks), and not much demand to visit American cities. Personally, for parks, I would look for the more obscure ones, as the marquee parks may be overcrowded — probably what you’re NOT looking for! If it turns out that not many people are actually travelling, you could later switch your strategy to more famous places that would be more enjoyable with fewer visitors (like Yosemite, Grand Canyon, Yellowstone, etc).
What happens to those fully refundable tickets if the airline goes under?
More than likely your SOL – used to be that if you paid with CSR airline BKs or other travel BKs were covered – but lets go back to a DOC post in January when COVID19 was just an denied virus in PRC.
https://www.doctorofcredit.com/chase-sapphire-reserve-preferred-trip-cancellation-benefit-no-longer-covers-financial-insolvency/
In the USA, you should be able to get a refund from your credit card company. Of course, if you’re travelling domestically, and you’re paying more than $150 for a summer ticket NOW, you’re obviously doing it wrong. The idea would be to buy a low-risk ticket for next-to-nothing — meaning your worst-case risk is next to nothing. I’ve bought 3 so far for travel through October. I’ve been averaging about 2 cents/mile.
I have been thinking that this may be the year to finally pull the trigger on that cross country road trip I’ve always been considering. Automobile travel is likely to be far safer than getting on a plane, no worries about cancelling, and it’s not like I’m going to be worried about wasting travel time at the rate I’m banking PTO.
Yosemite, Grand Canyon, Yellowstone, are bonkers busy even in non-pandemic times. You want to vacation on BLM land if you want isolation.
Right — as I said up-thread, I am worried that “the urban and suburban elites” will throng our National Parks this summer if the pandemic risk is relatively modest. You want to go to the parks that most of them don’t know about. As far as risks go, I’m sure that driving will be at least 10x as dangerous as flying this summer, but most humans will be entirely incapable of accurately assessing that risk. Everyone is worried about the invisible virus; nobody ever thinks of the risk of a car crash.
United buyback and offerings are motivated by the executive compensation structure. Shareholders get screwed twice.
Buyback High, Sell Low.
How not to win in the Airline business.
Yes very lucky for those selling UAL when UAL was buying @$95.
a lot of people are too uneducated to understand that share buybacks are return of capital equivalent to dividend payments. share buybacks are better for the stockholder because they dont force a taxable event the same as dividends, more discretion for the investor. share buybacks are great, i’m a big fan of them. politicians vilify the practice to capitalize on people’s ignorance. executive compensation (and reported stock performance) should be tied to a buyback adjusted share price, but that’s an issue with the incentive structure of executive compensation, its not a condemnation of share buybacks.
How many executive comp packages are tied to stock prices adjusted for buybacks? Very few, if any. Until this is a widespread practice, the abuse of share buybacks to goose share prices and compensation for executives will continue. Begging the gov for bail outs while wildly mismanaging cash and capital during years of record profits is pathetic to say the least. Privatized gains and socialized losses is not capitalism.
like i said, that’s a problem with executive incentive structure, its not a problem with buybacks as form of return of capital. i’m not arguing that buybacks dont serve some perverse interests on the side of executive compensation (the way its commonly structured), but most people who are sophisticated enough understand that for shareholders, buybacks are a significantly more favorable method of returning capital. Its why berkshire, google, amazon, chipotle and others have favored sticking to buybacks even when they have plenty of cash to issue dividends. you can just as easily have a company irresponsibly using capital to issue excessive dividends as doing excessive buybacks
I can’t speak for berkshire or chipotle, but google and amazon at least issue some of their share buybacks to employees. (stock grants).
No, most people who complain about share buybacks are fully aware it’s a self-serving practice to benefit major shareholders and to boost pay for top management. Furthermore it creates “vapor” salary increases which can be used to reduce profit, and force lower taxes. It provides zero value for rank and file employees, or for the health of the company in tough time, which is the whole point of the backlash.
Stocks are vapor money, here today, worthless tomorrow at the whims of the market. If they actually saved that as cash it could have helped them now.
stock buybacks benefit all shareholders the same. the corporate board tying executive compensation to inflated prices from buybacks is an issue with compensation structure not with buybacks as a method of returning capital. you fall into the ignorant basket unfortunately. buybacks and dividends are both return of capital, the alternative to having buybacks is not saving cash, its issuing dividends. aside from not fully understanding buybacks and dividends, you seem to be advocating that companies return less capital, in which case thats great. you should go run for a corporate board seat and advocate that
What is the investor’s discretion with share buybacks? If I own 100 shares of XYZ Company, can I call the chairman of the board and say “don’t buyback your stock today because it will be lower next year when a pandemic will strike”? Yeah, good luck with that.
With dividends, it takes about 30 seconds to see that XYZ company payed $1 a share on Jan 15, Apr 15, Jul 15, and Oct 15 of last year. The year before that, the company payed $0.95 a share on the same dates.
Companies are very public about paying dividends. They don’t publicize squat about buybacks. Now tell me again where the investor has more discretion.
glad you asked the question, a buyback increases share price by an commensurate value to what would otherwise be paid out as a dividend. rather than getting a $1/share dividend, share price increases by $1/share. so the answer to your question is you sell appreciated shares to realize the return of capital. if you choose to cash out, its an extra step in the process to get your cash payment, but if you dont want the dividend, or are someone who reinvests your dividends, then its preferred because it does not create a forced taxable event. if you dont understand any of that, just read up a little more on basic finance
I understand perfectly well that buybacks are great for the shareholder at the moment. Share prices increase hence you *on paper* have made money.
If the price of a stock keeps going up and you sell later at at even higher price, that is great. Everything is taxed as long term capital gain.
However, when the stock goes from $100 to $120 then down to $50, it is not so great, is it?
Buying back stocks when the company have not stockpiled an emergency fund is stupid.
Individuals are told to have 3-6 months of emergency funds in cash on hand.
The corporations, don’t have to?
Lastly, private profit and yet public loss.
We the taxpayers resent the whining about loss and having to bail out the airlines when we did not participate in the profits.
my whole point is buying back stock is in your words, “just as stupid”, as issuing dividends. we assume a corporation decides to return $1B to shareholders, that either happens via dividend payment or share buyback. share buyback is more beneficial to shareholders, because it gives you the choice to not realize the value of the distribution (so is not a compulsory taxable event). if you want your cash payment from return of capital through buyback, you sell appreciated shares when the shares are retired
true but if you overpay for the stock than its worse than having cash
Buy high sell low.
Guess United just joined r/Wallstreetbets.