S&P Removes Mesa from Small Cap 600 Index
04-08-2008 | 08:11 AM
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Joined: Dec 2007
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Ouch. Not good.....
Article from the Plane Buzz..
April 7, 2008
S&P Kicks Out Mesa From SmallCap 600 Index
This afternoon, after the close of trading, S&P announced that it was removing Mesa Air Group from the S&P SmallCap 600 Index. Aftermarket Technology Corp. (Nasdaq: ATAC) will replace Mesa Air Group.
As those of you who are market watchers know -- being included in an index encourages institutional buyers to buy a stock -- as institutional buyers attempt to mimic the underlying ownership mix of a particular index fund. When S&P selects a stock for inclusion in a fund, institutional investors usually flock to the stock, as they attempt to mimic the underlying stocks in a particular index.
Conversely, when a stock is bumped from an index, you tend to see institutions bail out of the stock. We'll see what happens tomorrow.
Meanwhile, Mesa had yet another rough day today on Wall Street, as shares ended the day down 13%, closing at 1.23. The stock collapsed last week -- losing 41% of its value, closing Friday at 1.41. Trading in Mesa shares was extremely heavy again today.
S&P noted in its release this afternoon that Mesa's market cap is now down to $33 million.
Ticker: (Nasdaq: MESA)
Article from the Plane Buzz..
April 7, 2008
S&P Kicks Out Mesa From SmallCap 600 Index
This afternoon, after the close of trading, S&P announced that it was removing Mesa Air Group from the S&P SmallCap 600 Index. Aftermarket Technology Corp. (Nasdaq: ATAC) will replace Mesa Air Group.
As those of you who are market watchers know -- being included in an index encourages institutional buyers to buy a stock -- as institutional buyers attempt to mimic the underlying ownership mix of a particular index fund. When S&P selects a stock for inclusion in a fund, institutional investors usually flock to the stock, as they attempt to mimic the underlying stocks in a particular index.
Conversely, when a stock is bumped from an index, you tend to see institutions bail out of the stock. We'll see what happens tomorrow.
Meanwhile, Mesa had yet another rough day today on Wall Street, as shares ended the day down 13%, closing at 1.23. The stock collapsed last week -- losing 41% of its value, closing Friday at 1.41. Trading in Mesa shares was extremely heavy again today.
S&P noted in its release this afternoon that Mesa's market cap is now down to $33 million.
Ticker: (Nasdaq: MESA)
JO hates Holly becuase she has exposed his terrible biz practices from day one. I love her for it.
Last week she commented that the only 2 airlines she saw making money this year (with oil at $110/barrel) are SWA and Allegiant.
She also said that Frontier got a boost away from being bankrupt due to the stong ski season CO had this year, hence their good 1Q numbers.
Funny thing is, this past friday she posted that Skybus was on its last leg (meaning days), and they shutdown a few hours after her blog hit the web. Next on her list is VA. '...the airline will survive only as long at the ego behind it will continue to pump $$$ into it.'
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