Originally Posted by
Airsupport
I don't feel skywest is a sinking ship, and neither do the investors, (more planes coming on board, better revenue, and good performance bode well for skywest right now) and by them buying stock back they have increased their market value, and in turn have made their own personal stock more valuable.
Are you disagreeing with this statement?
Originally Posted by
dontsurf
skywest buying back stock did not CAUSE the stock price to go up. that just isn't true. did they buy back stock? yes. did the price go up? yes. is it 100% flat out simplistic causation? no, it's not. if the street sees the buyback as a good thing by digging a little deeper into the company's position, strategy, etc., then they will value the stock higher. that's all. in that respect, it is very simple.
Like I said in my previous post, that was a quote from the article.
Also a stock buy back is a great catalyst in getting things moving. All this time skywest stock has been stagnant. Even with all the announcements about united easing up on their agreement, getting rid of Brasilia’s for rjs, Midwest flying. All of that and skywests stock still wasn't above its 52 week average. Then the announcement came for repurchase. The repurchase along with more planes coming on board, better revenue, and good performance are what are driving the price up. The stock buy back gave it a nice kick-start.