FlySooner9
Well-Known Member
Hey guys, not sure if anyone has noticed but XJT's stock is down to 55cents and has been on a steady decline as of late. Out of curiosity just how low can that price go before something happens?
"How low can that go until something happens?" What do you mean????????....All the stock price is saying what the market thinks of it.... if you watch day-to -day patterns if at the end of the day it goes down or up drastically it means probably some news leaked out. and think about it in order for this to go back up to $1.00 a share you need a 90% gain...that must be one heck of a news..PR. And with todays trends, same with shareholders they are looking for under-bidding not paying at book value. Example: Countrywide with a BV of 27 a share, Bear Stearns with a BV of 60+ a share...Hey guys, not sure if anyone has noticed but XJT's stock is down to 55cents and has been on a steady decline as of late. Out of curiosity just how low can that price go before something happens?
Like Icahn, or T. Boone Pickens?I'm not a stock guru or anything but why would you consider shorting XJT? It doesn't really have a lot of room to go down.
On a side note, I noticed the market value of US Air is something like $225 million. If my understanding of the markets is correct, does that mean if you had $225 million you could buy up all the stock and own the company? And they have $2+ billion in the bank (or did prior to the end of this year...haha). Anyway why not buy the company, take it private, take your money back out and some, and then sell it's assets off piece by piece?
You also buy a company's liabilities as well. I havent looked at any airlines balance sheet in a long time so i am just guessing, but very rarely will a company trade at less than their cash holdings unless there are some major liabilities. Last time I dabbled in airline stocks was frontier and did pretty well. As a rule, avoid airline stocks like the plague.I'm not a stock guru or anything but why would you consider shorting XJT? It doesn't really have a lot of room to go down.
On a side note, I noticed the market value of US Air is something like $225 million. If my understanding of the markets is correct, does that mean if you had $225 million you could buy up all the stock and own the company? And they have $2+ billion in the bank (or did prior to the end of this year...haha). Anyway why not buy the company, take it private, take your money back out and some, and then sell it's assets off piece by piece?
Like any short position, it can do down 100% and no more. In other words you short 100k and it goes TU, you profit 100k. Doesnt matter what the stock price is. If you covered after it went down 50% you would profit 50K.I'm not a stock guru or anything but why would you consider shorting XJT? It doesn't really have a lot of room to go down.
As Southernjets pilot "Agent Smith" would say, friends don't let friends buy airline stock.You also buy a company's liabilities as well. I havent looked at any airlines balance sheet in a long time so i am just guessing, but very rarely will a company trade at less than their cash holdings unless there are some major liabilities. Last time I dabbled in airline stocks was frontier and did pretty well. As a rule, avoid airline stocks like the plague.
I've heard that speculation going on since the major shareholders were putting pressure to just drop branded altogether, renegotiate with CAL, and get more CPAs. I thought it would have happened by now.I wouldn't be surprised if our management buys all the stock and takes the company private. Especially with the massive growth in our charter division. It would give management more control over the direction of the company, without having hedge fund managers breathing down our necks.
They'd have a helluva time buying for any less than $3.50 a share without any anit-trust suits.I wouldn't be surprised if our management buys all the stock and takes the company private. Especially with the massive growth in our charter division. It would give management more control over the direction of the company, without having hedge fund managers breathing down our necks.
I said it sbecause if they dot maintian a valu eof 1.00 or mroe for common stock, they will be de-listed by the NYSE. When that happens a lot of the big funds cannot hold common stock on th eOTC Over the coutner markets, so there will be a sell off.I'm not a stock guru or anything but why would you consider shorting XJT? It doesn't really have a lot of room to go down.
On a side note, I noticed the market value of US Air is something like $225 million. If my understanding of the markets is correct, does that mean if you had $225 million you could buy up all the stock and own the company? And they have $2+ billion in the bank (or did prior to the end of this year...haha). Anyway why not buy the company, take it private, take your money back out and some, and then sell it's assets off piece by piece?
Please elaborate.They'd have a helluva time buying for any less than $3.50 a share without any anit-trust suits.
The anti-trust act mainly deals with the potential for beating off compeition thus under Section 2 of the Sherman Anti- trust act condemns "every perons who shall monopolize or attempt to monopolize:. . The courts do something which is called the "market share test". if the market share is considerede to be 70 percent or more then ti is considered monopoloy power. I do not think if skywest Bid for XJT it would be considered a monopoly, due to the market size and other large reigonals like Pinnacle/Colgan, Americna Eagle, Mesa (who have flights from China). Especially since its the Rigonal airline market. Say at a small town theres one mom and pop gorcery store, only one. Now he will not be considered a monopolist if he is th eonly one and has the whoel towns market. Same with the Reigonal concept they fly into small er towns with little or no service.Please elaborate.
Uh, I'm not following here, merit.They'd have a helluva time buying for any less than $3.50 a share without any anit-trust suits.
I don't see how a stock buyback to take a company private would be forming a monopoly, engaging in price fixing or reducing competition. XJT doesn't own any other companies, and pretty much every market they go into to with their regional and branded operations has healthy competition already. There's plenty of competition for the charter biz, so I really don't see how anti-trust would apply in this case.Examples of illegal practices are price-fixing conspiracies, corporate mergers likely to reduce the competitive vigor of particular markets, and predatory acts designed to achieve or maintain monopoly power.
I'm not sure ExpressJet was as concerned about protecting an ego as it was protecting employees.that's a lot of cashola down the drain just because management wanted to protect an ego.
Yeah I'm right there with you. How is management buying the shares of the company have anything to do with this?Uh, I'm not following here, merit.
I don't see how a stock buyback to take a company private would be forming a monopoly, engaging in price fixing or reducing competition. XJT doesn't own any other companies, and pretty much every market they go into to with their regional and branded operations has healthy competition already. There's plenty of competition for the charter biz, so I really don't see how anti-trust would apply in this case.
The thing with buying BK stocks is that after a CH.11 the prefered shares, bondholders,debt holders, employees get paid before common shares. And in most Ch.11 cases they get wiped out. Even if they survive after re-emergence from BK (if they even do) the company ususally issues BRAND NEW shares rendering old ones worthless..So that would leave us with a tough decision at lunch. A couple of tacos or 14 shares of xjt.
I bought some Northwest and United stock just after Sept. 11. I though, hey, a couple hundred bucks, this will either go really well, or really bad, but it is worth a shot. The last time it still showed up in my portfolio it would cost me more to sell it in commission than to keep it. It eventually got filed away in the chapter 11 filling cabinet...
Managment will not buy their own company shares for cheap. If that is even possible maybe a private equity firm could be doin that...but if someone purchases a company stock worth over 5% they are considered part owners already.And something would need to be filed with the SEC. I also think that not many want to purchase or invest in airline stocks as of now.Yeah I'm right there with you. How is management buying the shares of the company have anything to do with this?