Wheels UP deeply cash-strappedOkay, no Technical Analysis here. No bullish view-point. No buy-zones.
Just had a look at the Dec 2024 report, because I saw they were up-side down on total debt to assets. Its actually worse than it first appears. For every dollar that they owe to creditors over the next 12 months, they have 36.2 cents available. That is a current ratio of 0.362, anything less than 1 (a current ratio below 1 means there is less than 100% coverage of debts coming due over the next year) is a major red-flag about a Companies ability to pay its bills in the short-term. I'm sure there are worse examples, but this is the worst I have seen when reading reports.
P.S. The executives are still receiving millions in performance bonuses.
This stock has been an almost unmitigated wealth destroyer for everyone involved (I never bought, but have been closely watching for a couple of years now). Everyone exept the execs and the bankers that launched this SPAC.
How will they survive? I don't know possibly;
- Delta may bail them out to maintain their VIP customer-base (plausible),
- They may find USD 600m+ from an outside major investor (doubtful),
- They may issue USD 600m worth of stock at a discount to financiers - this is not only doubtful (who would accept a stock that is down 98.85% since IPO as security on anything) but would be ruinous for existing shareholder's share in the remaining equity (the equity is actually NEGATIVE 202 million!).
This is very concerning. This will be causing stress among the operational staff.
Do not buy this stock, do not lend them money if you expect to get paid back, if you give them money consider it a charitable contribution. This is not my opinion, it is there in their report for you to read. I have no involvement with the Company and don't have an "axe to grind." This situation is truly unfortunate and I wish the staff well at this difficult time, I certainly hope it does not mean that the wider private aviation industry is in difficulty.
