The Surprising Reason Mohnish Pabrai Is Investing In Spirit Airlines (Save) Stock! 🚀

Рет қаралды 5,975

Күн бұрын

Пікірлер: 24

@garrypioch6346 5 ай бұрын

$SAVE. I can't imagine anyone shorting or selling here. $JBLU was willing to pay up to $35/share. Spirit's fleet of 202 aircraft are all 100% Airbus. Management has stated that the company will be cash flow positive in the 2nd quarter. The company's major bond issue is due in Sept. 2025. The next buyout offer could come at anytime. Buying $SAVE under $5 could be similar to buying $NVDA at $100. Don't miss out a second time.

@keithmcintosh8902 5 ай бұрын

I'm in for 10,000 shares at just over 5. I love the story in that it can either be a short-term play if there is another buyout, or a long-term play if it's just internal growth. A major catalyst will be Nov 2024. If the Dems are out, it will open up the possibility for a 'risk-free' buyout offer, whereby, the gov't wouldn't interfere. Regardless, in the short term, just hope for strong execution. I've purposely flown Spirit 4 times since January. Full-ish planes. If one didn't know any better, one would have no idea of the turmoil on the business pages.

@Jimboy012 5 ай бұрын

Totally agree. The current DOJ has made it clear it won’t uphold any mergers.. Spirit needs Biden out. But even without that, Spirit knows what it needs to do, which is to control costs by rerouting its planes and increase revenue by filling its planes

@rynetmaxwell 5 ай бұрын

Loved the in-depth analysis! I’m a shareholder of WAGNX. We had our first shareholder conference call a couple weeks ago and Mohnish was asked about the Spirit airlines bet - he said it was purely an arbitrage play and thought the upside was worth the risk of the deal being rejected but recognized that the bet failed and left the impression that he has since sold out of SAVE.

@solartalkers 4 ай бұрын

He sold or kept it

@rynetmaxwell 4 ай бұрын

@@solartalkers sold - I listened to the call again once they posted it on the investor relations website. He was able to convert the stock position into an investment in Spirits bonds after the merger fell through. So he still has a position with spirit, but exited their common stock

@ramizzunic8366 4 ай бұрын

Any possibility you might do follow up on this video as save came out with q1 earnings. There was no reiteration that they will come cashflow positive in 2quarter. They did mention that they “expect to generate some cashflow in 2nd half of the year”. .

@valentinpal 5 ай бұрын

liquidity is fine. will help also if rates will come down in the second part of '24. They will not file for bankruptcy in no way shape or form, unless there will be some significant macro event. They will also get 70-80mil in cash this year from Jetblue for stopping the merger. They will generate much more revenue in the next 1-2 quarters from compensation for the neo engines issues that prevented some airplanes from generating revenue. not only they will get some cash out of that, but in the next quarter the problem itself is solved, and we should expect more revenue just from that. coupled with the fact that domestic travel is recovering quite well, and that management adapted their routes to better suit the business, I see a pretty quick recovery. There is no reason why they can't recover a big chunk of the profitability they had. In your model, I see the revenue growth too pessimistic. Also the margins recover are pessimistic in my view. Overall your model shows the biggest downside, which is a 2x from here lol. Obviously with margins close to pre covid levels and more realistic revenue growth, we may see quite a multibagger. Maybe even more so than with the merger.

@Jimboy012 5 ай бұрын

We need Biden out so a new DOJ can come in.

@shakeelabdal-karim6488 5 ай бұрын

Nice work. My takeaway is that the liquidation value of SAVE is probably worth $4-5 a share. Seems like a classic value play.

@aaronmarshall1782 2 ай бұрын

Thanks I’m going to look into hhh I like bill ackman I was in air products when he came in and he did a good job

@BobISuppose 3 ай бұрын

Somebody sold, more like everyone sold here... Got to look at those forms and holders once those come out... Any further information on the shareholders actions on the SEC EDGAR site yet? I will have to ding in to see where fundamentals and shareholders are at... Might as well listen to the earnings call this weekend.

@brenthumason9347 5 ай бұрын

The whole trial was based on SAVE being an Ultra Low Cost Airline, while JBLU is just a Low Cost Airline. JBLU said they were going to raise prices and reduce the number of Ultra Low Cost seats.

@stevozz2 5 ай бұрын

Awesome........ thanks so much!

@johnsmith-dm2tq 2 ай бұрын

I like this, perhaps it's just me but it might be easier for people to follow what your saying if instead of saying ( their at 15% operation margin) you say (spirit is at 15% operation margin) I'm not criticizing, just listening while doing other tasks and have to stop to see what one of the two companies your talking about when you use the word they. I think other listeners do this too. Might help get and keep listeners. Just one man's opinion