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5 /1 5/2 017 U nit e d A ir lin es’ b ad w eek c o st B uff e tt a nd o th er in ve sto rs m illio ns M ark e tW atc h h ttp ://w ww.m ark e tw atc h .c o m /s to ry /u nit e da ir lin esb adw eekc o st b uff e tt a ndo th erin ve sto rs m illio ns2 0170 41 3/p rin t 1 /2 U nit e d A ir lin es’ b ad w eek c o st B uffe tt a n d o th er i n vesto rs m illio ns B y T o m i K ilg ore P ublis h ed: A pr 1 7, 2 017 7 :3 9 a .m . E T U nit e d h as lo st $ 570 m illio n in m ark e t c a p th is w eek, w hile W arre n B uff e tt m ay h ave lo st o ve r $ 50 m illio n o n h is i n ve stm ent G etty Im ages I n ve sto rs in U nit e d A ir lin es p are nt U nit e d C ontin enta l H old in gs In c., w hic h in clu des fa m ed b illio nair e W arr e n B uff e tt, h ad a r o ugh w eek.
A s im ages o f a p asse nger b ein g fo rc ib ly d ra gged o ff a p la ne la st w eeke nd w ere s ta m ped in delib ly o n in ve sto rs ’ m em orie s, U nit e d’s s to ck u nderp erfo rm ed th e a ir lin e s e cto r b y a w id e m arg in .
H ere a re s o m e s to ckre la te d fa cto id s fo r in ve sto rs to p onder:
• U nit e d’s s to ck U AL, 1 .2 3% s h ed $ 1.8 1, o r 2 .6 % , s in ce la st F rid ay, w hile th e N YSE A rc a A ir lin e In dex X AL, 0 .4 3% e ase d ju st 0 .2 % o ve r th e s a m e tim e. B y c o m paris o n, th e S & P 5 00 in dex S PX, 0 .1 5% lo st 1 .1 % d urin g th e w eek. D on’t m is s : 1 0 n ota ble q uote s fr o m U nit e d p asse nger’s la w ye r— and w hat th ey r e ally m ean . S ee a ls o : U nit e d A ir lin es e je ctio n m ore h arro w in g th an fle ein g V ie tn am , s a ys a tto rn ey fo r D avid D ao . • W it h a bout 3 14.6 m illio n s h are s o uts ta ndin g, a cco rd in g to F actS et, U nit e d’s p ric e d eclin e h as s h ave d $ 569.5 m illio n o ff t h e c a rrie r’s m ark e t c a pit a liz a tio n th is w eek.
• B uff e tt o w ned 2 8,9 51,3 53 s h are s o f U nit e d a s o f F eb. 1 4, a cco rd in g to a filin g w it h th e S ecu rit ie s a nd E xch ange C om mis sio n. W it h 9 .2 % o f th e s h are s o uts ta ndin g, B uff e tt w as b y fa r th e c a rrie r’s la rg est s h are hold er , a cco rd in g to 5 /1 5/2 017 U nit e d A ir lin es’ b ad w eek c o st B uff e tt a nd o th er in ve sto rs m illio ns M ark e tW atc h h ttp ://w ww.m ark e tw atc h .c o m /s to ry /u nit e da ir lin esb adw eekc o st b uff e tt a ndo th erin ve sto rs m illio ns2 0170 41 3/p rin t 2 /2 F actS et. If h is h old in gs r e m ain u nch anged, B uff e tt w ould h ave lo st $ 52.4 m illio n th is w eek o n h is U nit e d b et, a nd $ 135.2 m illio n s in ce F eb. 1 4.
• C hie f E xe cu tiv e O sca r M unoz, w ho tr ie d to p ut o ut th e p ublic re la tio ns fir e b y p ublic ly a polo giz in g m ult ip le tim es , o w ned 2 07,7 72 U nit e d s h are s a s o f F eb. 2 8, a n S E C filin g s h ow s. T hat im plie s a bout a $ 376,0 00 lo ss th is w eek, b ut h as g ain ed a bout $ 237,0 00 s in ce U nit e d r e fu se d la st m onth to a llo w tw o p re te en g ir ls fr o m b oard in g a p la ne fo r w earin g le ggin gs . • T he s e llo ff h as a ls o p ut th e s to ck in a p re ca rio us te ch nic a l p osit io n. T w ic e th is w eek, o n M onday a nd W ednesd ay, it t r a ded a bove th e c lo se ly w atc h ed 5 0d ay m ovin g a ve ra ge in tr a day, w hic h m any c h art w atc h ers s e e a s a d iv id in g lin e b etw een s h ort te rm u ptr e nds a nd d ow ntr e nd s, b ut f a ile d to s u sta in th e g ain s o n b oth th ose d ays . T hat m ig ht s u ggest p ric e s c o uld c o ntin ue to tr e nd lo w er o ve r th e s h ort te rm . T he 2 00d ay m ovin g a ve ra ge, w hic h m any v ie w a s a lo ngte rm t r e nd tr a cke r, e xte nded to $ 61.4 5, o r 1 1 % b elo w T hurs d ay’s c lo sin g p ric e . M eanw hile , W all S tr e et a naly sts r e m ain ed s a nguin e o n U nit e d’s o utlo ok. T he a ve ra ge r a tin g o f th e 1 8 a naly s ts s u rv e ye d b y F actS et w as th e e quiv a le nt o f b uy, a nd th e a ve ra ge p ric e ta rg et o f $ 82.9 4 w as 2 0% a bove c u rre nt le ve ls , a nd 9 .1 % a bove th e D ec. 2 0, 2 016 r e co rd c lo se o f $ 76.0 5.
S om e a naly sts a re a ls o e xp ectin g U nit e d to e xte nd it s s tr e ak o f b eatin g e arn in gs e xp ecta tio ns to fiv e s tr a ig ht q uarte rs , w hen th e c a rrie r r e ports fir s t q uarte r r e su lt s o n A pril 1 7 . A nd d esp it e c o nce rn s o ve r h ow th e p ublic r e la tio ns s n afu m ig ht h urt U nit e d’s b usin ess, th ere h as y e t to b e a ny im pact o n a ctu al t ic ke t p urc h ase , s a id E ric R oss, c h ie f s tr a te gis t a t C asce nd S ecu rit ie s.
S ee a ls o : U nit e d A ir lin es a nd P epsi’s P R s e tb acks m ay n ot h urt th eir s to cks . “ W e d on’t y e t s e e a n im pact o n U nit e d’s tic ke t s a le s fo r th e e ve nt v e rs u s th e o th er a ir li n es,” R oss w ro te in a n e m aile d n ote t o M ark e tW atc h . “ W e d o e xp ect to s e e a p urc h ase d eclin e o f s o m e le ve l fo r [U nit e d] tic ke ts b ut th e d ata d oesn ’t im ply h ow b ad it c o uld o r c o uld n ot a ctu ally b e.” M ore f r o m M ark etW atc h T he S ix M ost U nderra te d L eaders in S ports T his is th e n ew A m eric a n d re am L ong Is la nd's N ew W ave o f L uxu ry B uye rs C opyrig ht © 2017 M ark e tW atc h , In c. A ll r ig hts r e se rv e d. B y u sin g th is s it e y o u a gre e to th e T e rm s o f S erv ic e , P riv a cy P olic y , a nd C ookie P olic y . I n tr a day D ata p ro vid ed b y S IX F in ancia l In fo rm atio n a nd s u bje ct to t e rm s o f u se . H is to ric a l a nd c u rre nt e ndo f d ay d ata p ro vid ed b y S IX F in ancia l In fo rm atio n. In tr a day d ata d ela ye d p er e xch ange r e quir e m ents . S &P/D ow J o nes In dic e s ( S M ) fr o m D ow J o nes & C om pany, In c. A ll q uote s a re in lo ca l e xch ange tim e. R eal tim e la st s a le d ata p ro vid ed b y N ASD AQ . M ore i n fo rm atio n o n N ASD AQ tr a ded s ym bols a nd t h eir c u rre nt fin ancia l s ta tu s. In tr a day d ata d ela ye d 1 5 m in ute s fo r N asd aq, a nd 2 0 m in ute s fo r o th er e xch anges. S &P/D ow J o nes In dic e s ( S M ) f r o m D ow J o nes & C om pany, In c. S EH K in tr a day d ata is p ro vid ed b y S IX F in ancia l In fo rm atio n a nd is a t le ast 6 0m in ute s d ela ye d. A ll q uote s a re in lo ca l e xch ange tim e. F actS et