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Final
Segment #1: |
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'CEO
Wall of
Shame'
 Tonight,
adding Glenn
F. Tilton,
CEO
UAL Corp.
(United
Airlines) |
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Friday,
June 12, 2009 |
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Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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UAUA |
3.83 |
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Jim:
All week, I've been
considering your
nominations for the
Mad Money
Wall of Shame,
where I make sure we
only put the
absolute worst
CEOs... serial
destroyers of
value... amateurish,
incompetent
managers, who are so
awful that they
could cause an
immediate spike in
their stock, simply
by announcing their
retirement, or that
they want to pursue
other interests...
or maybe even, their
dreams.
It's my job to shame
them into leaving...
Let's hear the final
nominations of the
week... This one is
from Debbie...
See the
Mad Money Wall of
Shame here...
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Continued below...
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Jim's Charitable
Trust Alert -
Just happened:
* Just
BOUGHT new bank stock:
Bank of
America!
& just
sold
all of Nike position *
see
all
Jim's
latest
holdings here> |
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Friday,
October 22, 2008
(Cont'd from
above)...
Jim (cont'd):
Viewer Email:
Q:
Jim,
I've worked for
United Airlines
(UAUA)
for 32 years and
have watched my
company continually
shrink since Glenn
Tilton (CEO) took
over. Do you think
he is doing a
fabulous job because
he is trying to get
someone to merge
with us or sell us
off in parts? Or is
he just another
clueless CEO ruining
what was once a
decent company? With
no plans to order
any new aircraft in
the future, it seems
Tilton does not
intent to expand.
Would love to know
your opinion. Is he
a candidate for
Wall of Shame?
Jim:
A candidate?... A
candidate?...
Debbie, Glenn Tilton
just became a full
member of the
Wall of Shame...
Now this was a tough
one... It really is
a tough one, because
I think you should
never own an airline
in general but, when
I look at the
record, I have to
add a corollary to
that... Never own
UAL specifically...
Tilton has been the
CEO since 2002, but
the company was
reorganized under
bankruptcy... not
uncommon for an
airline... so the
existing UAUA stock
is only trading
since February 2nd
of 2006... when it
opened at $35.89...
so we got an 89%
decline... just 11%
away from 100%.
Now that's genuine
homespun
achievement.
Over the same period
of time, Delta's
down just 72%...
AMR's (American
Airlines) is down
80%... U.S. Airways
has actually done
worse... down 91%...
You've got to be
deliberately trying
to destroy value
with that
percentage...
Continental down
56%, and JetBlue
took a 65% hit...
All of this over a
period when the S&P
500 fell by 27%...
Like I said, I don't
think airlines
should be owned, but
if you had to pick
by performance, UAL
is clearly
terrible... it's
just a terrible
stock.
And how did Tilton
do as CEO?...
Miserably. He kept
trying, and failing,
to sell the airline,
but could never get
a deal done... which
led UAL to refrain
from $1 billion in
cost cuts to keep
itself attractive
for an acquirer that
never showed... and
now he finally
realizes that there
aren't any buyers,
and he announced
that... and this is
the one thing that's
different from yours
(the viewer via
email)... you say...
"no plans to order
any new aircraft."
He did announce a
150-plane order for
$10 billion, to
simply replace UAL's
aged planes... not
grow the fleet.
▼ ▼
▼ ▼
▼
 The Bottom Line!:
Look, the airline
business is an awful
business, so maybe
we're being too hard
on Glenn Tilton, but
I think he bad
situation at UAL and
made it a whole lot
worse. And for that,
he most certainly
belongs on the
Wall of Shame...
And, I've got to
tell you
something... I think
he should be free to
make extensive
travel plans for at
least the next
year... or two... or
maybe even three.
[verbatim recap]
[end of segment]
Read Jim's next Segment
here
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Read Jim's next Segment
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