bedford has come out and stated quite plainly that he expects to see a loss for the fourth quarter, along with first and second quarter 2010, due to costs of acquisition and operation integration with Midwest and Frontier. Rjet stock has not and does not pay a dividend. If I owned stock in Rjet, I would see no reason to hold onto it. It has no reason to go up between now and the summer. I would dump now and buy back later when it is lower. I think most everyone has the same idea.
Analysts know next to nothing about airlines, and this "special" child RAH is even more confusing for them. There are airline stock sell off everytime oil goes up. Everytime an accountant is able to show a smaller loss than last quarter, stock shoots up. Nevermind that money was still lost, or that management is bleeding the company dry. Stock holders are merely reacting to stated stock performance goals, and RAH has not given any reason to believe that it would be beneficial to own its stock. Bedford knows how to manipulate press to have desired effects on stock (albeit short term). News could be spun positively if needed. Methinks there is a stock buy-back in the next few months, and Bedford would like to allow the market to devalue the stock.
So far branded and regional ops have been performing as advertised.
