Originally Posted by
RedwoodA320
Also, nearly all US airlines have share valuation far below VX/AS' $55-57. LUV and AAL are 36. DAL is 37. JBLU is under 16. The fact that VX was trading at less than half its present value is entirely irrelevant. Please redirect your post to some forum for arrogant and ill-informed stock brokers. It's not relevant in the present forum, either in substance or in tone.
I agree with your other points (re ramp-up time), but the price of a single share (and the fact that VX/AS's single share is priced higher than DAL's) is totally arbitrary and irrelevant. DAL has far more shares, and thus a much higher total valuation; it could choose to merge shares so that its shares are more expensive than VX/AS if its shareholders wanted to for some reason. A 50% drop in a company's value is a 50% drop -- it would have been the same 50% drop if VX had split its shares 2:1 and they were going for $28. And hard to dismiss that as entirely irrelevant even granting that the company was not fully mature.
(OT, but this is also the reason why the Dow Jones is a stupid index--a 1% drop in the value of GOOG will make the Dow go down ~$7.70, because the company doesn't split its stock as much as others, so it's very expensive per share; whereas if GOOG issued far more shares -- say, enough to price the stock at $1/share -- then a 50% drop in the company's value would only make the Dow go down 50 cents.)