http://www.nasdaq.com/asp/Holdings.a...y&selected=XJT

Insiders and institutions have been buying it up as it's been coming down -- they're expecting it to do well or else they wouldnt be getting the stock on its way down... they're seeing it as a discount. Not a lot of bailing either...

 

Ownership Analysis # Of Holders Shares
Total Shares Held: 158 62,776,349

New Positions: 25 2,563,677

Increased Positions: 76 9,917,712

Decreased Positions: 59 7,629,431

Holders With Activity: 135 17,547,143

Sold Out Positions: 17 1,375,121

 

Insurance Companies, Mutual Funds, Hedge Funds, etc. However, it depends on the rules that each has to comply with. Some mutual funds are not allowed to purchase stocks under $10 or under $5. That's why the risk goes up substantially for these "cheap" stocks. You want your interests to be aligned with these investors, as they tend to be the "smart" money in a stock. It is considered to be a conservative strategy to purchase stocks with high institutional ownership. Unless the institutions want out. Then, you could get in to trouble in a hurry.

 

They'd also have significantly less cash on hand. And as anyone who bought a car they can't afford will tell you, you can't take a tire into the grocery store and buy a loaf of bread. Even leasing aircraft from CAL, cash flow is not a problem for XJT. Besides, having an asset to liquidate is only worth while if there is a market for said asset. And there ain't much of a market for 10 year old Jungle Jets. Here's my longshot: CAL pulls more flying, stock price slips further further, XJT gets bought by SWA and turned into SWExpress.

 

lol Jungle Jets...

 

Very likely.

 

Those jets still have value. Why do you think CHQ has CRJ's now? Couldn't get anymore 145's and that's just on the US side of things. Countries around the world want those things. You could always purchase the aircraft then operate off loans taken on the collateral on those aircraft or release more stock.

 

It probably doesn't make much sense for the company to issue more shares with their price so low. It would only serve to dilute the holdings of the current shareholders. I don't know if they have the cash on hand to do it, but a share buy back would likely do a better job of propping up the share price.

 

So now I have less cash on hand, a depreciating asset AND increased interest expense? Yeeeaaahhhh.....sounds like a great business decision, don't know why no one at XJT thought of it first.

One of ACA/Indy Air's big missteps was introducing those Airbii so quickly. I understand the operating economics are better on an aircraft that size but not the acquisition expense for an operation that size. They saddled themselves with a bunch of lease/interest expense at the same time they were burning cash to transition pilots onto the new airframe for an unproven operation. Its the same reason XJT didn't run out and buy E190s or A319s for the branded operation.

Fact of the matter is this, CAL holds the leases, CAL takes the risk. Yes, there may be a market for 50 seat RJs but it is small and unpredictable at best. The reason CHQ scrambled with those CRJs was because CAL wouldn't let 'em use the 170s (and because the arrogant SOBs running CAL and CHQ just assumed XJT would roll over and play dead.) But riddle me this: why were those CRJs available to CHQ in the first place? Because they had been sitting in the desert for years. Why had they been sitting in the desert so long? Because no one wanted them!

 

Yeah, lots of talk here about the numbers. I am not too good with the whole stock market thing. From what they told us, the yearly projected spending would be 30 million. They just spent 24 in the last quarter.

Lots of talk about not getting into an accident cause they would have no other option but to close shop.

There are also some rumors of picking up some frontier work but that will only be as lasting as the Jet Blue work they were given a little while ago.
Was also told that if the stock fell too low that Mesa might be the first to pounce. Yikes!