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Trading In WestJet Shares Probed  
User currently offlineGoose From Canada, joined Aug 2003, 1840 posts, RR: 15
Posted (9 years 7 months 2 weeks 12 hours ago) and read 2240 times:

From today's Toronto Star.

Quote:
Trading in WestJet Shaes Probed

Stock market regulators are scrutinizing trading in shares of WestJet Airlines Inc. in the days leading up to the dramatic collapse of its rival, Jetsgo Corp.

WestJet shares soared Friday when the stock market opened hours after Jetsgo shut down its operations and announced it would seek bankruptcy protection. WestJet stock climbed again yesterday, meaning anyone who bought shares before Friday made a killing.

Last Wednesday, nearly 3 million WestJet shares, worth about $35 million, changed hands. Then Thursday, 1 million were traded. The volume both days was well above the average 410,000 shares that have traded daily in the past six months....

.... Rest of the article here.


"Talk to me, Goose..."
11 replies: All unread, jump to last
 
User currently offlineA332 From Canada, joined Feb 2005, 1644 posts, RR: 2
Reply 1, posted (9 years 7 months 2 weeks 12 hours ago) and read 2229 times:

Meh... anyone who had any clue about the state of Canada's airline industry as a whole knew that Jetsgo's collapse was imminent. It was simply a question of when it would happen, not how or why.

Whether or not this is coincidental, I would not know. On Thursday evening I would have given Jetsgo another few weeks before we saw them close up shop or be shut down entirely. When I learned of Jetsgo's collapse the next day I was surprised by it's immediacy, but not at all surprised by it's occurrence.



Bad spellers of the world... UNTIE!
User currently offlineSwissy From Switzerland, joined Jan 2005, 1734 posts, RR: 4
Reply 2, posted (9 years 7 months 2 weeks 11 hours ago) and read 2215 times:

Absolutely normal reaction of financial market, just wait
a few weeks until stocks are going back to were they should
be, remember nobody wants buy high stocks as it is very hard to actually make money through re selling
Cheers


User currently offlineA332 From Canada, joined Feb 2005, 1644 posts, RR: 2
Reply 3, posted (9 years 7 months 2 weeks 11 hours ago) and read 2211 times:

It's funny, the first thing I thought of when I heard of Jetsgo's collapse was calling my broker and buying a bunch of shares... it's too bad I didn't have the funds around to do so.


Bad spellers of the world... UNTIE!
User currently offlineLnglive1011yyz From Canada, joined Oct 2003, 1608 posts, RR: 15
Reply 4, posted (9 years 7 months 2 weeks 11 hours ago) and read 2199 times:

WHY Do we in Canada INSIST on "investigating" things that CLEARLY do not need to be investigated, yet we let an airline who clearly had maintenance problems go unnoticed, not telling the public that there was a potential risk of bankruptcy, and then potentially PUNISH other companies for a total normal course of action?

I'm getting sick of the bureaucratic bullcrap that our governments past and present dish out.

We sit back and take all this, without even flinching.

I need to go for a walk. HAHA

1011yyz



Pack your bags, we're going on a sympathy trip!
User currently offlineSwissy From Switzerland, joined Jan 2005, 1734 posts, RR: 4
Reply 5, posted (9 years 7 months 2 weeks 11 hours ago) and read 2184 times:

1011YYZ yes I agree with you lets all go for a walk and get some fresh air, just to let you know WS was grounded back in 96 or 97 by TC because of maintenance (paper work), SG had no short coming in that regard.
Cheers


User currently offlineOlympus69 From Canada, joined Jun 2002, 1737 posts, RR: 7
Reply 6, posted (9 years 7 months 2 weeks 7 hours ago) and read 2116 times:

Quoting Lnglive1011yyz (Reply 4):
WHY Do we in Canada INSIST on "investigating" things that CLEARLY do not need to be investigated,

Why do you say that a huge increase in the number of Westjet shares being traded the day before Jetsgo went bankrupt CLEARLY does not need to be investigated?


User currently offlineGoose From Canada, joined Aug 2003, 1840 posts, RR: 15
Reply 7, posted (9 years 7 months 2 weeks 7 hours ago) and read 2098 times:

Quoting Swissy (Reply 5):
... just to let you know WS was grounded back in 96 or 97 by TC because of maintenance (paper work), SG had no short coming in that regard.

WestJet pulled the plug on its own; it knew TC was going to pull their license, so they decided to save face and do it themselves to get everything in order. It was actually a misunderstanding-slash-Transport Canada changing the rules on WestJet mid-stream. I could explain further, but it'd be lengthy. The short of it is that WestJet's issue had nothing to do with safety, just paperwork.

JetsGo had some serious issues, with the off-runway excursion, the exploding engine in YYZ a few weeks ago, and their RVSM being pulled after TC investigated their operation, name three. These weren't misunderstandings, as was the case with WestJet.



"Talk to me, Goose..."
User currently offlineYukimizake From Japan, joined Mar 2004, 529 posts, RR: 0
Reply 8, posted (9 years 7 months 2 weeks 7 hours ago) and read 2083 times:

Quoting Lnglive1011yyz (Reply 4):
WHY Do we in Canada INSIST on "investigating" things that CLEARLY do not need to be investigated

Basically you are suggesting the market regulator not look into what is quite likely insider trading.

Quoting Lnglive1011yyz (Reply 4):
we let an airline who clearly had maintenance problems go unnoticed, not telling the public that there was a potential risk of bankruptcy

The maintenance issues were not going unnoticed, this was being reported on in the press before the demise of SG.
SG was a privately run company, how could the gov't have known they were on the brink of bankruptcy. Also, even if they gov't was aware of the tenuous situation at SG, if there was some sort of public warning that in itself would be the final nail in the coffin. To the people who booked on SG and lost out, that very unfortunate but hey, caveat emptor.

Quoting Lnglive1011yyz (Reply 4):
We sit back and take all this, without even flinching.

So what should we do, have a bonfire on parliament hill and burn effigies of Paul Martin and Jean Lapierre?


Here is the official government statement on the SG situation, it seems to be appropriate to me.

http://www.tc.gc.ca/mediaroom/advisories/2005/05-ma002e.htm



'Opfer müssen gebracht werden (Sacrifices must be made)' - Otto Lilienthal
User currently offlineLnglive1011yyz From Canada, joined Oct 2003, 1608 posts, RR: 15
Reply 9, posted (9 years 7 months 2 weeks 6 hours ago) and read 2059 times:

Quoting Olympus69 (Reply 6):
Why do you say that a huge increase in the number of Westjet shares being traded the day before Jetsgo went bankrupt CLEARLY does not need to be investigated?

and:

Quoting Yukimizake (Reply 8):
Basically you are suggesting the market regulator not look into what is quite likely insider trading.

Gentlemen,

I retract my original email. It was written before I had more knowledge, and I now have egg on my face. After watching the news this evening, it appears that both AC and Westjet appear to have known something.

Quoting Yukimizake (Reply 8):
SG was a privately run company, how could the gov't have known they were on the brink of bankruptcy. Also, even if they gov't was aware of the tenuous situation at SG, if there was some sort of public warning that in itself would be the final nail in the coffin. To the people who booked on SG and lost out, that very unfortunate but hey, caveat emptor.

Perhaps that's the root cause -- Maybe airlines should be regulated so that they are *not* Private, and hiding away from us.

Under the circumstances of this bankruptcy, etc, agree, Caveat Emptor. But, again, that does not make it right or not open to fair suggestion that the laws need to be changed..

1011yyz



Pack your bags, we're going on a sympathy trip!
User currently offlineYeggerman From Canada, joined Mar 2005, 143 posts, RR: 0
Reply 10, posted (9 years 7 months 1 week 5 days 5 hours ago) and read 1972 times:

IMO and the mumbles I've heard around the water cooler is that Mr.Leblanc purchased a lot of shares in WS and AC on Thursday just before he announced his airline was going under. Makes sense if you think about it, your airline is going under, might as well make some money out of it..... Not saying it is the right thing to do "insider trading" and all....


"All great things must come to an end"
User currently offlineWJV04 From Canada, joined Jun 2001, 584 posts, RR: 4
Reply 11, posted (9 years 7 months 1 week 5 days 1 hour ago) and read 1937 times:

Im with Yeggerman...
If ML did indeed do such a thing, and could get away with it, he would have some capital for starting a new airline. LOL I can see it now. Aircraft painted some odd color (remember how ugly jetsgo's scheme seemed when they first started) with "Third times the charm" slogans painted on the fuselege LOL.


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