Phil pointed me at this article and it’s one of the funniest things I’ve read in a while. Because some people are stupid.
Maybe they’re willing to take risks that analysts would avoid. Maybe they’re right. Or maybe they just don’t know what they are doing.
That is almost certainly true of investors who have been buying US Airways stock, which will become worthless the day the merger with America West is consummated.
Let me repeat that: US Airways stock is going to be worthless.
The company has said it again and again. “The transaction anticipates that the existing shares of U.S. Airways will be canceled,” the airline said in announcing the merger plan.
It is what happened the first time US Airways was reorganized under Chapter 11. The old stock became worth no more than the paper it was printed on, valuable only to collectors of stock certificates.
But still, somebody keeps buying it.