Should I sell my XJT stock or wait.
08-04-2010, 08:11 AM
#1
Rubber dogsh#t out of HKG
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Joined APC: Jan 2008
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Should I sell my XJT stock or wait.
I'm new to stock trading and I am only dabbling here with less than 100 shares of XJT.
With the announcement of Skywest buying Expressjet, XJT's stock jumped from 3.20 to 6.56. SKYW is now at 12.49. Is the logic that XJT will eventually get to where SKYW is priced?
Sell now or wait?
With the announcement of Skywest buying Expressjet, XJT's stock jumped from 3.20 to 6.56. SKYW is now at 12.49. Is the logic that XJT will eventually get to where SKYW is priced?
Sell now or wait?
08-04-2010, 01:48 PM
#2
Gets Weekends Off
Joined APC: Oct 2005
Position: 737 Right
Posts: 951
If you wait until the merger deal is complete, you will receive $6.75 cash per share for your stock. That is the price Skywest is paying for the stock, hence it is the "market price."
The stock is trading a little lower than that now, possibly because sellers are willing to take a small discount in order to "cash out" now (rather than wait until the merger closes), and buyers won't be interested unless there is room to cover their commissions plus make a profit.
The stock is trading a little lower than that now, possibly because sellers are willing to take a small discount in order to "cash out" now (rather than wait until the merger closes), and buyers won't be interested unless there is room to cover their commissions plus make a profit.
08-27-2010, 08:38 AM
#3
Gets Weekends Off
Joined APC: Jul 2007
Posts: 568
There is always the chance that the deal won't go through. Skywest offered to buy ExpressJet 2 years ago and that fell through. Skywest CEO Jerry Atkin does not want to merge his non-union pilots with ExpressJet, whereas the ExpressJet pilot contract requires a merge in the seniority list upon acquisition. The legal wrangling is underway. Long story short, I would grab the massive profit and move on. I wish I would have had XJT stock myself for the more than double overnight. AAI and JBLU are very attractive right now FWIW.
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