I made a purchase of Allegiant Travel (ALGT) today on this pullback, been waiting a long while for some sizeable drop; I assume the weakness is due to oil pushing up but I've given up trying to figure out random movements anymore. I am taking this up to a 2% stake with purchases in the $48s; I would like to make this a larger position if it drops to $45 or down to $43.
I do have to say I am not happy to see this shelf filing for $150M shares; all the proceeds go to insiders and nothing to the company. But this is par for the course for what the stock market has become - a way to transfer money from many to the few via their corporation.
- Allegiant Travel Co., an airline and travel operator, filed a shelf registration with regulators Tuesday for certain stockholders to sell up to $150 million in common shares and other securities. Allegiant will not receive any proceeds from the sale of the stock by its shareholders, the company said.
That's 15% dilution, with all the proceeds going to insiders. Reverse Robin Hood in action. If they were not hitting such home runs in terms of operations, it would be difficult to stomach this.
The stock is now approaching 10x 2009 estimates. (pre dilution)
[Apr 20: Allegiant Travel Continues to Impress]
[Feb 19: Allegiant Travel in Wall Street Journal]
[Feb 4: Allegiant Travel Position Started]
[Jan 27: Allegiant Travel Continues to Execute; Buyback Announced]
[Jan 7: Allegiant Travel December Traffic]
[Jan 5: Beginning Allegiant Travel] (old portfolio)
Long Allegiant Travel in fund; no personal position
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