Top Bears Reasons To Sell — Vote below!

The security associated with this page is inactive. If you know of an actively traded security for this page, please leave the ticker and the name of the exchange on the talk page

Add a New Bears Reason

Company: Continental Airlines (CAL)
Current price:
Headline: (100 character max)
33 votes

  Declining Capacity and Traffic

Continental, like many other legacy carriers, has been hit hard by the global recession that has consumers flying less. In October 2008, Continental's traffic fell 7.6%, slightly more than its 7.3% reduction in capacity.

(100 character max) Cancel
36 votes

  High Fuel Prices Hurt Profits

The competitive fare environment of the airline industry makes it very difficult to pass along increased fuel costs. The volatility of oil prices leads to higher operating expenses for Continental. For example, Continental paid an average $2.18 per gallon of fuel in 2007, one of the highest in the airline industry.

(100 character max) Cancel
38 votes

  New share Issue - dilutive

Continental Airlines has announced a stock offering that could raise about $160 million to build a bigger cash cushion against rising oil prices.

The Houston-based carrier made a public offering Thursday of 11 million shares of its Class B common stock at $14.80 per share.

With fuel costs rising sharply in recent months, airlines are looking for any hedge against high oil prices. They are raising fares, adding luggage fees and other charges, reducing capacity in secondary markets and streamlining fleets

(100 character max) Cancel
31 votes

  More cuts

CAL admitted to a $213m loss between April and June, it’s going to have to make some switches and cuts, including the following:

-1,700 job cuts -A price hike for checked luggage -Another price hike for reservations made over the phone

While Continental will doubtlessly save some money by chopping its work force down to a more manageable - and payable - size, who knows if that’s going to be enough in the end.

And one way or the other, right now, if we read the economy through a Continental lens, things aren’t just shaky: They’re flat out miserable.

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki