Xjt stock trading lower than Mesa now?? what is the deal?!

[Nevets]

nevets will be in here soon to set you all straight

Like I set you straight the last time.

 

[Nevets]

The information on the sub-par contract that XJET signed with CAL is getting disseminated thru the ranks of the investors. While this contract added a level of stability to XJET's operation, it did it at the expense of profitability and sustainability. There is a thought in the ranks of the instutional investor that XJET will have no choice but to file bankruptcy in order to get their cost structure down low enough to just break even. There will be a large amount of layoffs in all work sectors. Any labor agreements will need to be abbrogated to get relief both in compenstaion and productivity. All in all it will be a very rough year for the rank and file at XJET. Essentially, this contract was signed, as bad as it is, because of the missteps of the current managment team. It finally came to a head and they had no choice and got this slammed down their throat. Hence, a stock that will soon be delisted and sent to the pink sheets and an imminent bankruptcy filing.

(3 posts maximum till a starry eyed XJT kool aid drinker tells me how full of sh*t this post is)

Although I cannot disagree with you on the "a thought in the ranks of the instutional investor" since I cannot read their minds, I can guess that some of the downward pressure on the stock may come from the fact that the convertible bonds are coming due on August 1.

By the way, what are the NYSE's rules for delisting? I honestly don't know them but it seems like you do so maybe you can let me know.

 

[Nevets]

Skywest deal doesn't look so bad now does it....?

It still looks worse. And it will look worse until the day XJT ceases all airline operations.

 

[Nevets]

3.50 per share versus what it is now..45 cents!? Makes wonder though about Delta cutting flying and Jerry wanting to furlough, i think he new this cut in flying was coming.

Didn't Jerry want 700 furloughs? Looks like its going to get close to that with branded and Delta flying being cut.

You are looking at this through an investors' point of view. From the pilot's point of view, the SKW offer was an insult. Do you even know what that was or do you only about the $3.50 a share (something the XJT MEC was not concerned about and had no control over).

 

[Nevets]

Both situations smell like poo. http://forums.flightinfo.com/showthread.php?t=114391
The end result is the same. And everyone knew cuts in flying were coming. XJT's CPA with Delta ended the middle of next year anyway.

The end result may not have been the same (unless XJT ceases all airline operations). SKW was looking at the XJT pilots to be "cost competitive" or risk losing the rest of the CAL flying.

 

[Abbey]

You are looking at this through an investors' point of view. From the pilot's point of view, the SKW offer was an insult. Do you even know what that was or do you only about the $3.50 a share (something the XJT MEC was not concerned about and had no control over).

The investor's point of view is why the stock price is in the tank. Mesa, XJT, Comair, Pinnacle, etc....it doesn't matter how "good'' the operation is as graded by pilots.

Is the company making money, can they keep making money, are they gonna make money, and they aren't making money is basically all they care about.

 

[Nevets]

The investor's point of view is why the stock price is in the tank. Mesa, XJT, Comair, Pinnacle, etc....it doesn't matter how "good'' the operation is as graded by pilots.

Is the company making money, can they keep making money, are they gonna make money, and they aren't making money is basically all they care about.

If you look at what I quoted in that response you will read that it was in relation to the SKW buyout of XJT. He was saying that in hindsight $3.50 a share is not a bad deal considering the price of XJT stock now. My point was that the XJT MEC is not tasked to concern themselves with what the correct price should have been, as if they even had any control over that anyways. The XJT MEC was only concerned with SKW condition that the Holding Letter and scope clause be thrown out. That was the part of the deal that was not good, from the pilots' point of view.

 

[Andy Neill]

By the way, what are the NYSE's rules for delisting? I honestly don't know them but it seems like you do so maybe you can let me know.

XJT meets most of them like
- at least 400 US shareholders or
- 2200 total shareholders.
- at least 100,000 a month trading volume. Since XJT trades on average over a million a day, that is no problem.
- at least 1.1 million shares outstanding (XJT has over 52 million shares).
- at least 25 million cash flow over the last 3 years (with nearly $450 million last quarter, I guess that's covered).
- at least $75 million in revenue in the most recent year (see point above)

Where XJT is in trouble as far as listing requirement is the market cap. There are various rules that XJT does not meet (XJT market cap = $21 million):
- Global Market cap of at least $75 million
- US market cap of at least $100 million

For XJT to have a market cap of at least $100 million, the price per share would have to jump to at least $1.90.

http://www.nyse.com/regulation/listed/1147474807344.html

 

[Nevets]

XJT meets most of them like
- at least 400 US shareholders or
- 2200 total shareholders.
- at least 100,000 a month trading volume. Since XJT trades on average over a million a day, that is no problem.
- at least 1.1 million shares outstanding (XJT has over 52 million shares).
- at least 25 million cash flow over the last 3 years (with nearly $450 million last quarter, I guess that's covered).
- at least $75 million in revenue in the most recent year (see point above)

Where XJT is in trouble as far as listing requirement is the market cap. There are various rules that XJT does not meet (XJT market cap = $21 million):
- Global Market cap of at least $75 million
- US market cap of at least $100 million

For XJT to have a market cap of at least $100 million, the price per share would have to jump to at least $1.90.

http://www.nyse.com/regulation/listed/1147474807344.html

I think those are the rules for listing on the NYSE. What I'm wondering is what are the delisting rules? Isn't there a minimum share price?

 

[Andy Neill]

I think those are the rules for listing on the NYSE. What I'm wondering is what are the delisting rules? Isn't there a minimum share price?

Right you are. NYSE requires that the average trading price over a consecutive 30-day period remain above $1.00. That is why Silicon Graphics (SGI) lost its listing when it stayed below $1 for 6 months.

XJT 30-day moving average went below $1.00 for the first time today.

 

[CX880]

Mesa is at .31cents. If delta wins the appeal does that mean MESA will have to file CH11?

 

[Nevets]

Right you are. NYSE requires that the average trading price over a consecutive 30-day period remain above $1.00. That is why Silicon Graphics (SGI) lost its listing when it stayed below $1 for 6 months.

XJT 30-day moving average went below $1.00 for the first time today.

You have a link?

 

[Andy Neill]

You have a link?

Not a great one. This is as good as I have:
http://news.cnet.com/SGI-stock-faces-delisting/2100-1010_3-5928422.html
and this:
http://www.sgi.com/company_info/newsroom/press_releases/2005/november/nyse.html

 

[Goose Egg]

Please tell me that you guys aren't actually surprised by XJT's stock price.

-Goose

 

[Abbey]

Nevets,

Correct. I should have quoted the thread starter as it was he that asked the question of why XJT is lower than Mesa on the ticker.

 

[Nevets]

Not a great one. This is as good as I have:
http://news.cnet.com/SGI-stock-faces-delisting/2100-1010_3-5928422.html
and this:
http://www.sgi.com/company_info/newsroom/press_releases/2005/november/nyse.html

Thanks, I've been looking for something that explains it. My half hearted searches had not dug anything up.