Have $30 million? What would you do if you were Pinnacle Management?

In their defense- buying stock back benefits them (mgmt) the best, benefits the shareholders the most, and keeps them in a position for leverage to acquire more, and it works as insurance to assure no private equity firms can sneak up on them buy buying up the shares outstanding. Now in retort- They could have settled the contract AND bought back stock. That would be a good gesture to EVERYONE. By buying shares back they are still looked at as a very vulnerable player due to labor unrest with pilots. I don't know what to say- I know the negotiations with the NMB in kansas start tommorrow, and buying the stock last fall was one of my better stock purchases. I still have high hopes and low expectations from this "paper" company. They have enough cash (320mil-ish) To not only purchase Colgan's Q400's, the CR9's, but also to meet the $18M difference in the pilot contract. They could have done that and bought back $50M in stock. Instead they are having to keep money aside for more penalties that could be looming to NWA for cancellations, training costs due to attrition, and money set aside in case a strike shows up. But heck, I am just a first year FO and a small shareholder.... What do I know?
 
aloft said:
What are you thinking?!?! This leaves nothing for executive bonuses!!!
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While that may be true pertaining only to the cash that PNCL has, the compensation package with bonuses last year was rather inflated as compared to the numbers from previous years and even recent and subsequent quarters. By utilizing the cash to the most advantageous levels to help every aspect of the company the stock would inherently rise, causing the overall net worth- and subsequent worth of each one of the main stockholders (mgmt) to grow to a much higher extent as compared to a simple allocation of cash to each one of their respective checking accounts. This entire viewpoint is only mine though...:banghead:
 
Yeah, there were some pretty Martha-esque stock purchases and option going on for management last year. Wish I knew we had a deal with ASA with NWA and Delta flying and just sat on the annoucement and quietly bought stock....
 
blee256 said:
You bought pinnacle stock! really??
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The writing was on the wall last fall when the stock price was in the $6-6.75 range and all the major stockholders where buying large blocks of shares, plus we had an ASA on the horizon with plenty of rumors all involving more flying... So it was a good purchase in my book. Almost a 300% return is nice on first year FO pay.
 
Must be nice to have disposable income to buy stock on first year FO pay. Me? I got a wife, kid and a mortgage. :)
 
kellwolf said:
Must be nice to have disposable income to buy stock on first year FO pay. Me? I got a wife, kid and a mortgage. :)
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Sell the kid, use the proceeds to payoff a significant portion of your mortgage, then force the wife to work the streets until she can pay the rest of the house mortgage. There... you now have disposable income as a first year Pinnacle F/O.
 
Isnt the whole point of buying your own stock back is if you think the company is under valued? 20 something mill for colgan, 30 mill to buy back stock, and $0 pay increases for your pilots...great job mgmt :sarcasm:
As Im looking to apply there in a few months....

Disclaimer: I do think the colgan purchase was a good investment for them bc it does provide for expansion but buying back stock, come on....
 
MSUDAWG said:
Isnt the whole point of buying your own stock back is if you think the company is under valued?
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A public company actually has to buy back stock every once in a awhile if only to offset the effect of its employee stock option/stock grant plans. Stock options are a little like printing money, but if they don't buy back an equivalent number of shares out of the marketplace, the stock eventually starts to dilute, which isn't good for shareholders.
 
Well my budget is tight but I have no debt, no kids (just a dog) and the fiance and I live together and budget pretty well, so I get to do a bit of investing....
 
Re: Have $30 million? What would you do if you were Pinnacle

wheelsup said:
Have $30 million? What would you do if you were Pinnacle Management?
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Buy Colgan new Saabs.

















































And yes, that was a joke Kell.
 
Re: Have $30 million? What would you do if you were Pinnacle

colgan already got all the parked saabs that PCL had
 
Re: Have $30 million? What would you do if you were Pinnacle

Yeah, Smittey, I knew it was a joke. Although, that's a good rumor to start to watch the senior guys go spinning out of control. :)
 
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