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XJet Out Of The Woods?  
User currently offlineEnilria From Canada, joined Feb 2008, 7308 posts, RR: 14
Posted (6 years 3 months 5 days 17 hours ago) and read 2697 times:

So XJT stock is trading at 40 cents and the entire company is worth $21 million. Given that XJET has now jettisoned all their unprofitable operations (except charter?) and will now return to exclusively flying guaranteed flying for CO, shouldn't XJT be a good bet for increased value? As soon as the new CO deal takes effect and September rolls around they basically won't have a fuel bill (except for charter).

It seems to me that they have fixed their fuel/fleet problem and could climb in value toward Republic and Skywest which are worth 20 to 40x more.

Thoughts?

9 replies: All unread, jump to last
 
User currently offlineFutureFO From Ireland, joined Oct 2001, 3132 posts, RR: 21
Reply 1, posted (6 years 3 months 5 days 17 hours ago) and read 2613 times:

I would think not. Remember they have to answer to stockholders now. Also the stock has been at less than a dollar now for a couple of weeks. They should be receiving the delisting notice anytime now.


I Don't know where I am anymore
User currently offlineKAUSpilot From United States of America, joined Jan 2002, 1959 posts, RR: 33
Reply 2, posted (6 years 3 months 5 days 16 hours ago) and read 2577 times:



Quoting FutureFO (Reply 1):

No one is out of the woods, your beloved chitaca is furloughing too.


User currently offlineJoeljack From United States of America, joined Feb 2005, 939 posts, RR: 0
Reply 3, posted (6 years 3 months 5 days 16 hours ago) and read 2528 times:

I was looking at that too...I was going to give it a month or two and then buy the stock depending on if anything happens in the near term. Right now though, will they make it without the Chap 11 filing?

How much cash do they have on hand? It'll tell a lot on the 2nd quarter earnings filing.


User currently offlineFlight152 From United States of America, joined Nov 2000, 3401 posts, RR: 6
Reply 4, posted (6 years 3 months 5 days 16 hours ago) and read 2479 times:



Quoting Enilria (Thread starter):
all their unprofitable operations (except charter?)

Charter is profitable and doing very well.


User currently offlineFutureFO From Ireland, joined Oct 2001, 3132 posts, RR: 21
Reply 5, posted (6 years 3 months 5 days 15 hours ago) and read 2363 times:



Quoting KAUSpilot (Reply 2):

First off learn how to spell Chautauqua. Second I did not say we were perfect. We are furloughing 200 pilots, but no F/A's. It is bad everywhere.



I Don't know where I am anymore
User currently offlineEnilria From Canada, joined Feb 2008, 7308 posts, RR: 14
Reply 6, posted (6 years 3 months 5 days 14 hours ago) and read 2297 times:



Quoting Joeljack (Reply 3):
Right now though, will they make it without the Chap 11 filing?

I would think that with the impact of returning to a cost plus business model, they would no longer be considered a fuel risk company. Thus, they should be able to get financing. Additionally, their cash position becomes largely irrelevant after September since they will be on a pay as you go program with Continental for basically all their flying.

The only variable I don't know the answer to is whether they have agreement for return of all the surplus aircraft. They have spoken in releases as if that is already in place, but it's not that clear.

Absent that variable it would appear to me they are once again a viable company.


User currently offlineAzstar From United States of America, joined May 2005, 621 posts, RR: 0
Reply 7, posted (6 years 3 months 5 days 14 hours ago) and read 2280 times:

I believe their CO contract is considerably less than what they wanted, and were making prior to the new contract.

User currently offlineFutureFO From Ireland, joined Oct 2001, 3132 posts, RR: 21
Reply 8, posted (6 years 3 months 5 days 11 hours ago) and read 2078 times:

They are taking a loss on the CO flying just like they took on the DL flying.


I Don't know where I am anymore
User currently offlineEnilria From Canada, joined Feb 2008, 7308 posts, RR: 14
Reply 9, posted (6 years 3 months 5 days 11 hours ago) and read 2057 times:



Quoting Azstar (Reply 7):
I believe their CO contract is considerably less than what they wanted, and were making prior to the new contract.

Agreed, but it wouldn't have to be much to make the stock worth more than 40 cents!

Quoting FutureFO (Reply 8):
They are taking a loss on the CO flying just like they took on the DL flying.

That's not true. The DL deal was a prorate deal where Delta didn't pay them. In fact, they probably paid Delta a fee to use their brand. The CO is a traditional cost plus deal which is essentially a wet-lease. If they are taking a loss on the new deal, they must believe they can get contractual concessions. I doubt they are actually taking a loss. At worst it is probably breakeven plus performance bonuses.


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