|
Alaska Air shares slump
|
 |
February 14, 2000: 2:49 p.m. ET
Stock sinks to 52-week low amid new liability concerns; analysts still confident
|
NEW YORK (CNNfn) - New liability concerns over the crash of Alaska Airlines flight 261 pushed shares of Alaska Air Group down to a new 52-week low on Wall Street Monday, even as industry analysts renewed their confidence in the nation's No. 10 airline.
The Seattle-based company's shares slumped 1-1/6 to 28-1/8 by mid-afternoon, a level that would easily undercut the stock's 52-week low of 29-3/16, barring a major turnaround by the closing bell.
Alaska Air (ALK: Research, Estimates) has shed more than 25 percent of its value since a company MD-83 went down over the Pacific Ocean last month, killing all 88 people on board.
Monday's decline was spurred by new information from the National Transportation Safety Board indicating a key part on the aircraft that some believe caused the deadly crash was scheduled to be replaced during a routine maintenance check during 1997, but later was cleared to remain in the jet.
However, industry analysts continued to downplay the airline's exposure to serious liability claims from the crash, blaming the stock's decline on irrational fears fueled by negative media reports.
"Right now, I still believe in the story of Alaska Airlines," said Ray Neidl, an analyst with ING Barings. "Unless something unexpected happens, I expect a bounce back" in the share price.
"I think the stock is a good value here," agreed Peter Jacobs, an analyst with Ragen McKenzie Inc. "There is a lot of uncertainty, but from a valuation standpoint, this stock is as cheap as it's ever been and it has one of the best balance sheets in the business."
But the crash did spawn its first lawsuit Monday, filed on behalf of Allen Friedmann, 48, a marketing executive with the California Bankers
Association who died in the accident. The suit, filed in U.S. District Court in Chicago, charges the airline with negligence.
The monetary damages being sought by Friedmann's survivors weren't immediately known. 
-- from staff and wire reports
|
|
|
|
|
 |
|
