RE:RE:Consolidation Over?
Yes consolidation has taken place and the stock has established a $3.75 / $4 range at the moment but I don't think anyone smart is shorting on anything other than a day trade at the moment - too much risk for any reward. The only way to play that would to have a good short / call option combo to protect a position I also think that the Oneworld potential is really being overplayed here. While the AC, TD, CIBC partnership has a strong vested interest the question Oneworld would ask is "What's in it for me?" - a partnership perhaps but the same kind of offer as AC?.. Nope... Why take on $2 bil. in liability. With a loyalty program you hope customers never use the points. That's why some have a use it or lose it policy. The AC offer has a high retention interest for the partners involved but now that AP has said that they hope to be able to redeem on any airline what is Oneworld's motivation? To buy the whole liability /debt for full pop.. doesn't sound like a great business decision to me. So if Oneworld is only a partnership, how will that push the SP to double levels?