Shares of Delta Airlines (DAL) are down 20 percent to 87 cents per share this morning. Hopefully readers of this blog sold their stock months ago. After JP Morgan’s buy recommendation in May, at $3.30 per share, I pointed out that the stock was pretty much going to be worthless at some point, even though the rationale for JP’s upgrade was their guess that the company would go under in 2006, not 2005.
Now that Delta will join U.S. Airways and United, is anybody next? While not as much of a sure thing as Delta was back in May, I do think Northwest (NWAC) could be the next victim, and have been short NWAC shares in order to try and profit from yet another bankrupt airline.