USGL carries very little debt (Delta could you rem
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Posted On: 05/08/2017 5:33:32 PM
USGL carries very little debt (Delta could you remind us about how much debt we have, off the top of your head?). For all intents and purposes, we have none. And the first ~$100M in net income is tax-free due to NOLs from years past. This is one of the major reasons why starting a new company called USGL instead of rebranding BLTA is a bad idea. BLTA carried a lot of useful baggage that provides great business incentives. So why is this important?
USGL can buy back shares very quickly during the first few years and as the SP increases, they'll be in a strong position to do a forward split if it'll benefit shareholders (almost always does). It won't cost much, and it'll attract large investors like Berkshire Hathaway (which recently purchased ~9.8% of each of the 4 major US carriers totaling $10 billion) and investment banks. If 5% of the O/S is bought back, each of us gains 5% in the value of our investment. It'll be a sign of extreme strength and the business will grow faster as a result. For example, American Airlines buys back stock every year, but that's because they carry $19 Billion in debt. So they sort of have to in order to prevent the SP from plummeting every time they beat the crap out of a passenger on an overbooked plane. When a company like USGL comes along and says "we have no debt, an awesome passenger experience, a modern take on air travel, and we're buying back shares using CASH, not debt" then it'll invite huge investments that'll drive growth.
Just a thought.
USGL can buy back shares very quickly during the first few years and as the SP increases, they'll be in a strong position to do a forward split if it'll benefit shareholders (almost always does). It won't cost much, and it'll attract large investors like Berkshire Hathaway (which recently purchased ~9.8% of each of the 4 major US carriers totaling $10 billion) and investment banks. If 5% of the O/S is bought back, each of us gains 5% in the value of our investment. It'll be a sign of extreme strength and the business will grow faster as a result. For example, American Airlines buys back stock every year, but that's because they carry $19 Billion in debt. So they sort of have to in order to prevent the SP from plummeting every time they beat the crap out of a passenger on an overbooked plane. When a company like USGL comes along and says "we have no debt, an awesome passenger experience, a modern take on air travel, and we're buying back shares using CASH, not debt" then it'll invite huge investments that'll drive growth.
Just a thought.
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