So im looking at Deltas balance sheet, income statement and all that and just trying to figure out ways Delta could make a comeback. Delta is trading at 85 cents now and will be de-listed on oct 13. All analysts are saying sell. So like i said im looking at their balance sheets and i notice it says they have about 16.5 billion in property, plant and equipment. So i do a little math and i believe this number is off by quite a bit. I believe they have much more assets than they lead on. There are 822 planes in deltas fleet so divide that by 16.5 billion and you come out to 20 million a plane. hmm strange because planes are not usually that cheap...even used. I only have 1999 prices but even back then the smallest boeing (the 717) was selling for 35 million and went as high as 197 million for the 747-400 combi. But basically average prices were $46 million for any of the 737s, 180 million for the 747s, $70 million for the 757s, $110 million for the 767s and 150 million for the 777s. But anyway then i go look at British airways. Almost identical in assets and income, but BA's EPS is 5 bucks a share compared to deltas -31 per share. I think delta could be turned around if someone like Carl Icahn stepped in like he did with TWA. Heck Delta is a bargin, you can buy the whole company for only 134 million right now (thats its market cap)
I'm not a bankruptcy expert, but take a look at their current and long-term debt. Those debt holders are first in line before anyone else in the bankruptcy. It's also worth noting that the last snapshot we have of the company is for the quarter ended June 30, 2005, things have likely deteriorated significantly since then. I think it's pretty unlikely that current shareholders are going to see anything when/if Delta comes out of bankruptcy protection. Air Canada bankruptcy is a pretty good case example for an airline, looks like the same is going to happen with Stelco (a steel producer), etc. If you want to be a shareholder, you are probably better off looking at the company again when/if it comes out of bankruptcy and lists shares on a stock exchange.
========================= If memory serves me correclty & mostly does ; true Carl Ichan =very helpful, profitable investor, but lost money on his long TWA stock. Lots of people use short term blip ups to; put it simple , enter medium, long term downtrends like DAL. Not a banker, but it runs in my family and you are on to something; Have flown DAL pretty good bit and figure they are a good loan risk,[ even if stock goes to 0.00]. DAL has [a]Character collateral [c] capacity to pay, [c2]customer service excells. DAL could be like LUV
Is anyone betting on DAL now? I recently flew on Delta and the plane was packed and the customers seemed happy. I realize that during Ch. 11, they could dissolve the outstanding common stock and reissue at a later date leaving the current shareholders with empty pockets. However, what is the possibility/probability that Delta reemerges without having to dissolve the current stock? What are your thoughts?