US Airways Opens Issuance Window for Stock

Posted Aug 15th 2008 2:19PM by Todd Harrison
Filed under: US Airways Group (LCC), Oil

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As many people have heard before, there are only two times a company issues common stock: When it absolutely has to or when it is stupid not to.

Well yesterday's issuance by US Airways (NYSE: LCC) may represent that once in a lifetime opportunity to see those seemingly contradictory principles in action at the same time. Having seen its stock trade at $1.45 not a month ago, $8.50 must seem pretty sweet to US Airways management, particularly with strong technical resistance at $10.00 providing a pretty strong ceiling above.

With airline stocks trading as the most leveraged play on the price declines in oil, I can understand why US Airways management took advantage of the window being open to issue stock. But just because the issuance window is open, doesn't mean investors should jump.

Tags: inthenews, lcc, oil, todd harrison, ToddHarrison, us airways, UsAirways

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Reader Comments (Page 1 of 1)

9-01-2008 @ 7:54PM

jack said...

hi.i,m confused,doesn,t today,s oil prices reflect purchases for a furture date? if so why would these changes effect today,s airline stock prices..would someone please explain..thanks..