So back in my DDTG days I was a huge Spirit airlines guy. This is really where the legend of Davey Daytrader was born. Right when I went all in on Spirit at 7 bucks everybody's favorite grandpa Warren Buffett announced he was selling all his stock in all the airlines. It quickly became a Mano y Mano battle for the hearts and minds of inventors everywhere. The new dog vs the super old dog. And the results were like when a young Larry Holmes beat the shit out of a well past their prime and helpless Muhammad Ali. Spirit stock skyrocketed into the low 20's and a new caption of the stock market was born.
Well fast forward to today and Spirit Stock has fallen close to 75% in the past 3 days after the Government blocked a proposed merger between Jet Blue and Spirit. Here is the ruling from the judge
"A post-merger, combined firm of JetBlue and Spirit would likely place stronger competitive pressure on the larger airlines in the country," Judge William Young wrote in his Tuesday ruling . "At the same time, however, the consumers that rely on Spirit's unique, low-price model would likely be harmed."
This ruling instantly cratered the stock sending it back to Covid lows with rumors that this decision would force Spirit into bankruptcy. Now here is what my gigantic brain simply can't comprehend. If the 2 options for Spirit right now is to either merge with JetBlue or file bankruptcy how in the world can a judge block this merger? Like it would seem to me that if Spirit goes out of business than the very Poors that government is trying to protect would no longer be able to fly on Spirit anyway since they'd be belly up . I just fundamentally don't understand how in any capitalistic society a judge can block a merger between 2 companies when 1 of them is in dire straights. It makes zero sense to me.
Something just doesn't add up here. That is why I unloaded the clip on Spirit stock yesterday. I bought options at $5.80 and need it to be over 7 bucks by March. I was a believer in Spirit back in the day and I'm a believer in them again now. IN THIS COUNTRY WE FLY! Plus I think there is a chance this ruling from the court is appealed/overturned or maybe the Gov bails them out again?Because if they think Spirit is so important that they need to exist than they can't just let them go out of business either right? Or am I making too much sense? Either way I'm all in…