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Pros and Cons with selling VA stock now?
Hi Yahoo!
I bought a few shares of Virgin Airlines (VA) when they IPO'd in November 2014. Now that the price has gone to ~55 due to the announcement of Alaska Air (ALK) buyout with cash at $57/share, what are the pros and cons with selling the stock now, as opposed to waiting for the actual buyout to happen?
I read that the acquisition with cash would result in current stockholders to receive cash as opposed to stocks being converted to an ALK stock for the equivalent amount. True?
2 Answers
- rarguileLv 65 years agoFavorite Answer
Take the money and run..it's difficult merging airlines because they have different airplanes - Alaska has Boeings, Virgin America has Airbus - different cultures - and different lists of pilot seniority...which matters way more than you think...it will take two to three years to generate a common schedule and a common focus - the two sides will be fighting for months about who has the right approach...these mergers work on paper but I saw US Airways take over PSA and they destroyed the California culture that made PSA special...
- 5 years ago
Are you a trader or a investor? Id agree with rarguile and just sell, but it does depend on what you want to acheve by investing.