ITSALLGOOD

Today was a terrible day for Mesa. They are in very real danger of collapse.
1. Stock closed at .96. They are officially a penny stock. I could be wrong, but I believe NASDAQ will de-list a company if their stock price goes below $1. Someone please clarify if you know better.

2. They announced they want to sell more stock in order to raise capital. This signifies they are running low on cash and can not raise money in the traditional fashion...loans. See #1.

So if they are strapped for cash and can not get any more credit, they have to sell more shares...That is now virtually impossible if they are de-listed. With Oil still climbing, contracts being lost, an FAA investigation, and another likely judgement against them in the Aloha lawsuit, I don't see how they can survive beyond June.

reevesofskyking

but it gained 4 cents in after hours trading.

Could be someone trying to set up later in the week for profit taking?

or some inverstors like the idea of issuing 37 million in stock to be off debt that is due in 2023?

I am not smart enough for stocks

mwa1

shorts covering

buffmike80

I don't believe that they have to go to court with and airline that is no longer in business, there is no one to represent the company, I don't think all the creditors will try and pursue it so JO won that battle but looks like he is going to lose the war. What was the board thinking when they extended his contract for another couple of years? But I almost believe this is what JO wants, he is a very shady business man and does not have any qualms with making back end deals, It would not surprise me one bit if he is pushing mesa down and cooking the books to lose money so that way they can file bankruptcy, reorganize and give the Pilots and Fa's another crappy contract and then come out of it all making a load of money for him and the other major shareholders and wouldn't you believe it they get the Delta contract back or move all the ERJ's out to Hawaii and do it 10% cheaper than what they did it before.

ITSALLGOOD

Buff,
I find it very hard to believe that the creditors of Aloha would not go down every road to get their money. Also, Aloha has ceased pax operations, but the corporation still exists...I believe they are still in the cargo business. You give JO too much credit...he is a shady business man, not a good one. Cooking the books could land him in jail. It is possible he is doing that but highly unlikely.

MWA1, are you saying the $.04 gain after hours was covering of shorts?? Do you know what the NASDAQ rules are re: stocks below $1. I could have sworn they de-list if you close below that value for more than a couple of days.

INAV8OR

The Stock must remain below $1 for 90 calender days for it to be delisted. Also if the stock stays at .89 cents for 80 days and in the last ten days it goes to $1.00 the delisting period restarts when the stock closes below a buck...

HercDriver130

Bankruptcy doesnt mean the corporation doesnt exist.... and they certianly can pursue litigation...... NObody in their right mind.... will buy 37 million in stock in MESA ...nobody... and anybody that does... deserves what they get in the end.

rickair7777

Aloha is still operating cargo flights IIRC, and are in Ch. 11 not Ch.7 bankruptcy.

In Ch.11 the company is still operating and has every incentive to pursue the mesa lawsuit.

Even in Ch.7 the creditors are still almost certain to press forward with the lawsuit in hopes of boosting the company's assets before they divide it all up. I think we are talking about approximately $100 Million.


If they go Ch.7 the creditors might be more willing to settle with mesa for a smaller amount, since they do not have the emotional involvement that the Aloha management does. However, a settlement would mean that JO might have to pay up immediately...he might prefer to drag out a court battle instead.

CRJ1000

Apparently the cargo operation is parked because the pilots are jr. to most of those laid off and ALPA wants sr. pilots to keep flying.

mwa1

MWA1, are you saying the $.04 gain after hours was covering of shorts?? Do you know what the NASDAQ rules are re: stocks below $1. I could have sworn they de-list if you close below that value for more than a couple of days.[/quote]

i meant to answer the general question behind the question that losing stocks can go up in value as shorts seek to cover - "dead cat bounce." not really doing a technical analysis of a 4 cent rise.