Expressjet Reports Third Quarter 2007 Results
10-20-2007, 07:15 PM
#11
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Position: A320 CA
Posts: 1,530
Originally Posted by Dash8Pilot
I think you are right that something's brewing, but for the wrong reasons. The press release of the Q3 results was issued at 9:55 pm ET on a Friday. Not exactly the time you would release results if you wanted attention on them. After looking at the release it seems apparent why ExpressJet was hoping this would get overlooked during the weekend. The loss was double what Wall Street was looking for and yields were flat from Q2. The increase in load factor is encouraging, but the yields need to pick up considerably for the branded operation to succeed.
The runup of XJT stock on Friday may have been nothing more than people expecting an upside surprise from the earnings release that evening. Other airlines posted good numbers, and people might have been hoping to get in front of the same from XJT.
If you really want to find out what's brewing, look at the detailed results which will be released Monday, and listen to the conference call. Where XJT closes on Monday will be a much better indicator of what Wall Street thought of the last quarter and of future prospects.
P.S. Sorry to sound so negative. l have several friends at XJT, so I'm hoping for the airline to succeed.
The runup of XJT stock on Friday may have been nothing more than people expecting an upside surprise from the earnings release that evening. Other airlines posted good numbers, and people might have been hoping to get in front of the same from XJT.
If you really want to find out what's brewing, look at the detailed results which will be released Monday, and listen to the conference call. Where XJT closes on Monday will be a much better indicator of what Wall Street thought of the last quarter and of future prospects.
P.S. Sorry to sound so negative. l have several friends at XJT, so I'm hoping for the airline to succeed.
10-20-2007, 07:37 PM
#12
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Originally Posted by blastoff
No, XJT did exactly what a company with a struggling stock price should do...release good news on Friday to carry momentum into the next week and allow after-hours trading to build even more momentum over the weekend.
10-20-2007, 10:21 PM
#13
Tuk er jerbs!
Joined APC: Mar 2007
Position: B747 Left
Posts: 1,342
Originally Posted by Dash8Pilot
How does a loss nearly double the wall street estimates, and flat yields equal good news?
My eyes aren't only on Branded, by the way. Right now my attention is on developments with CAL, especially the possibility of a longer term pro-rate deal with them that would release us from that CPA, thereby allowing us to diversify with flying from more airlines. That's where I think the future is going to lie.
Last edited by NightIP; 10-20-2007 at 10:28 PM.
10-21-2007, 06:03 AM
#15
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Let's wait until Monday
Well, you guys see the press release as a supermodel, I see a pig with lipstick. Let's wait until after the conference call and 10Q are out, then see what wall street does with XJT stock. That will tell us for sure what wall street thought of the third quarter.
10-21-2007, 06:37 AM
#16
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Originally Posted by Dash8Pilot
Well, you guys see the press release as a supermodel, I see a pig with lipstick. Let's wait until after the conference call and 10Q are out, then see what wall street does with XJT stock. That will tell us for sure what wall street thought of the third quarter.
All of my friends that work on "wall street" spend their days blowing lines of coke and cheating on their wives............Nice to know these people control so much of our future
10-21-2007, 07:10 AM
#18
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Originally Posted by NightIP
Oh, and XJT is one of the very few airline stocks to actually show a gain today (+11%). Somethin's a brewin'! 
Short selling defined: http://www.investopedia.com/terms/s/shortselling.asp
Buying to cover:
http://www.investopedia.com/terms/b/buytocover.asp
How this applies to XJT (how short selling makes money):
http://www.investopedia.com/ask/answers/03/060303.asp
I shorted XJT, got out of it just prior to last quarters results (now I wish I had stayed). The stock is $2 from $0---so for a guy who shorted it at $5. $7, or $9... the additional $2 profit is not worth the risk that it might start going back up (basically eating into the shrot sellers profits). Shorts bet that the price of the stock will fall, that is largely what drives this type of surge prior to earnings .
Up 11%---sure... but "ExpressJet shares, which closed up 11.07 percent to $3.01 on Friday, have fallen about 60 percent so far this year." (Source: http://biz.yahoo.com/rb/071019/expre...ults.html?.v=2)
10-21-2007, 09:40 AM
#20
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Originally Posted by whiskerbizkit
Ok, little confused...thought if a airline makes money, thats good news, if they lose money, thats bad news. So where is the good news??
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