SWA Activist investor wants new BOD

Boris Badenov said:
Mentour makes a fairly convincing case that this is basically a pump n dump. To wit, SWA is hamstrung by the Max7's uh let's call it "extended gestation", causing all kinds of chaos in the balance sheet. Elliot swoops in, claiming that the management team has screwed everything up, gets their preferred board-members in...just in time for the Max7 to finally get certified, at which point they proclaim Victory, sell out at 150-200%, and are lauded for their lead-pipe cruel-but-necessary treatment, when they did essentially nothing. Murca!
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And the folks that did years of research prior to the investment were just doing their job. It's just sad, in the olden times putting out an IPO was considered something to celebrate, that's why you'll see them on the news ringing the bell at the NYSC. These days going public while hopefully giving an influx in capital also puts a target squarely on your back. You've given up control and despite your best efforts you've sold the company and a bunch of someone elses are in charge now unless you're either a genius with the next big idea floating around in your cranium. Elliot is trying to take over, if they succeed the initial spirit or spark that made Southwest successful will be extinguished. These people have no passion regarding aviation, people, convenience or anything else, it's just all math and leverage for a forecast profit. They don't give a • and it's not only legal but it seems to be encouraged. In-N-Out is still a privately owned company, you can't buy stock or try to be a franchise owner and they're not only making money hand over fist they're expanding.
 
knot4u said:
These people have no passion regarding aviation, people, convenience or anything else, it's just all math and leverage for a forecast profit.
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Which would all be fine (disgusting, but fine) if that were how demand actually works, but it's not. The biggest brains in the Finance "industry" barely beat an index fund on a good day. And that's with a huge advantage. It's a freaking casino (except you're required to participate).
 
SWA selling jets?

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Anything to put a few dollars in their pockets ( and other share holders ) short term, then abandon a ruined company when they’ve leached it for all they could and maybe pumped up the stock price in the process.

Gross.
 
Yeah, like Eddie Lampert selling-off real estate/assets when he was CEO of Sears to, magically, a holding company that he also controlled, and then leasing the stuff back to Sears as OpEx.

If Elliott has any connection to the buyers, or even guaranteeing financing for the buyers, I recommend distributing pitchforks to the true believers at We’re Nuts & Co.
 
Minuteman said:
Yeah, like Eddie Lampert selling-off real estate/assets when he was CEO of Sears to, magically, a holding company that he also controlled, and then leasing the stuff back to Sears as OpEx.

If Elliott has any connection to the buyers, or even guaranteeing financing for the buyers, I recommend distributing pitchforks to the true believers at We’re Nuts & Co.
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Yeah, dirty dealing at its best.

I don’t think executives that are compensated with stock should be able to sell off more than 10% a year.
 
Minuteman said:
Yeah, like Eddie Lampert selling-off real estate/assets when he was CEO of Sears to, magically, a holding company that he also controlled, and then leasing the stuff back to Sears as OpEx.
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That's what Frontier does with all their planes. Buy them, sell them on delivery, then lease them.
 
Hey all - I've been away with familial death, multiple spinal fractures, my own end of life talk with a doctor (not imminent, unless it is), Maggie's wedding, and other stuff - it's been an eventful summer.

Zap is one of my favorite members. I even had beers with him once. Anyone who has been around long enough knows that a) Zap has had an extraordinary run of bad luck/timing in this industry and b) How Zap always pined for SWA as well as c) Zap likes Disney.

Further, I served on a Board with Colleen Barrett (RIP) and I absolutely adored her.

With that said, for all you that are prognosticating on SWA value as a trading stock - if you didn't short SWA immediately after Zap left JB to go to work there...then you don't know how to read history and shouldn't actively trade but just dabble in Index funds and such.
 
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