Wall of Shame: UAL Corp.’s Glenn Tilton
Cramer on Friday added UAL Corp.’s Glenn Tilton to the Mad Money Wall of Shame, citing the usual litany of offenses: poor execution, the resultant value destruction and all around incompetence.
Cramer would never recommend an airline stock anyway, but Tilton deserves special distinction for his performance and United Airlines’ parent company. Because of a bankruptcy-inspired reorganization, the existing UAL has only been trading since February 2, 2006, where it opened at $35 and chance. Now the stock fetches $3.83, a lost of 89%. Even other struggling airlines like JetBlue and Continental are down only 65% and 56%, respectively. So Tilton is something of a standout here.
The CEO’s failed attempts to sell his company have left UAL in a tough position. The $1 billion a year in cost cuts are gone, and that money is now part of the $10 billion going to replace UAL’s old planes, rather than grow the fleet. The airline business is bad enough, but Tilton’s stewardship has been even worse. For that reason, Cramer said, he belongs on the Wall of Shame.
A previous version of this story indicated that the existing UAL Corp. has traded since February. It has been trading since February 2, 2006.
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