Tempted to buy some XJT stock
 

I know stocks can always go lower, but I don't think I can resist much longer buying some XJT stock now. I was there during the IPO at 15 bucks a share, and now I can pick some up at $2.35 a share.

They still have 205 airplanes working for Continental, and though it doesn't seem like the branded operation is working too well, I can't imagine that they will go out of business with so much cash in the bank and all that infrastructure built/purchased.

They may have to resize, cancel the branded department and slowly build from there.

Any thoughts?

It's going to go lower.

Look at their earnings yield vs. their return on captial. If they have a high earnings yield and a high return on capital, its a good buy. My guess is both aren't that great. Get your hands on their income statement from last year. There's a wealth of information in there that will help you make an educated guess rather than a blind hunch purchase. Just my .02 cents.

Bob Crandall, former CEO of American Airlines who was dang good at running the place, and knew the airlines better than anyone else said himself that he never has, and never will invest in any airline.

Actually, our branded loads have been great. I was looking at loads today out of SAN, ONT and MCI.... and almost everything is up between the mid 30s to low 40s. Pretty respectable for a 6 month old operation if you ask me. From previous conference calls management has stated that we are prepared to take losses for the first 6-8 quarters of the branded operation.

IMHO, our management has been dropping the ball with marketing. I always run into people at our focus cities still don't know who we are and where we go. If they want any success in marketing, they should get the employees involved. We're not all Riddle grads with bogus degrees... some of us actually have great ideas that could spread the word a lot more efficiently than some over priced San Francisco marketing agency.

I guess only time will tell.....

Till then, I'll spend a few hundred bucks and see what happens. :D

I thought you "got hired on the 75/6 at CAL"..............

I did. Feb class date.

SAAB- XJT will be fine. Relax.

Oil Price
 

Careful buying any airline stock just yet. With the oil prices as high as they are, most of the majors are seeing some pull back.

I'd like to see the branded operation work because I'm still rooting for my old company, but let's face it, the odds are slim. XJT doesn't even want to release traffice data because they know that the other airlines will move in a crush them. So basically, they can't even get up an running anywhere. We can agree to disagree, but I don't think the branded operation is the way to go. I give it a very low chance of working out and ever making any money.

They really should be working on getting more business and signing more agreements with other airlines, much like they did with Delta.

They will be kicking themselves, if it turns out that Southwest decides to contract with rj feed too. XJT could have had that, had they not decided to compete with SWA instead. Bad move in my opinion.

With today's fuel prices, any young airline would have a hard time.