Alaska Air (ALK) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Alaska Air (ALK)

ALK 40.87

-0.5%

11:53 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Kenneth Kirk who wrote (14)	2/3/1998 4:25:00 AM
From: Dale Baker	Read Replies (1) of 152

A comment on PE in light of the imminent debt conversion to almost 4 million shares of common stock. Total ALK shares outstanding will rise from 18 million to nearly 22 million by mid-February, according to ALK's published conversion formula. Everyone who held the $132 million of convertible notes will get common shares at $33 per share. I'm open to argument, but I find it hard to see how ALK can maintain the same share price when some of these debt holders will inevitably want to flip their shares (common shares have less certainty than subordinated notes). Also the earnings per share will drop by more than 20% as soon as these new shares are averaged in, yielding average shares outstanding for this quarter at about 20 million instead of 18. Am I missing something? This does not look good for current ALK holders (I have no position at the moment).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next