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Mesa Stock Is Down 24% Today  
User currently offlineOswegobag From United States of America, joined Oct 2008, 169 posts, RR: 0
Posted (5 years 10 months 2 days 10 hours ago) and read 2742 times:

In the 1st hour of trading, Mesa stock is down 6 cents per share, or 24%! The rest of the airline industry is down about 1% on par with the market. Does anyone know of any reasons for this? I am not looking for responses that "Mesa is going under" or "they are the worst regional who have thier days numbered". I am looking for breaking news about Mesa.

Did they lose the lawsuit with Delta? Getting delisted from the exchange? Any news that can cause this?

16 replies: All unread, jump to last
 
User currently offlinePohakuloa From United States of America, joined Jun 2006, 418 posts, RR: 0
Reply 1, posted (5 years 10 months 2 days 8 hours ago) and read 2627 times:

*all specualation*

I dont think the DL contract looks good for Mesa, and people could be doing exactly what I am doing and speculating and getting out while they still can. Even stalwarts have their breaking points.

On a smaller note. Only other thing I can think of (though having little to no obvious affect) is that in the Hawaii market, Mokulele starts jet service (E170) on 19 Nov 2008 (this wednesday) competing directly with Mesa in the island market. Arguably it could be said they are competing with everyone, but Mesa stands to lose the most with this new entry.

just my thoughts....



Fast cars and 'Jet A' - such a sweet smell!
User currently offlineNorCal From United States of America, joined Mar 2005, 2459 posts, RR: 5
Reply 2, posted (5 years 10 months 2 days 7 hours ago) and read 2533 times:



Quoting Oswegobag (Thread starter):
I am not looking for responses that "Mesa is going under" or "they are the worst regional who have thier days numbered". I am looking for breaking news about Mesa.

Well those are pretty much the reasons, they are a sinking ship for many reasons and investors know that. Between the law suits, the pissed off labor groups, and the bonds coming due in January they are finished. Their assests are worth more than the company right now and the investors will probably choose to liquidate when the time comes.


User currently offlineScottB From United States of America, joined Jul 2000, 6762 posts, RR: 32
Reply 3, posted (5 years 10 months 2 days 7 hours ago) and read 2492 times:



Quoting Oswegobag (Thread starter):
Does anyone know of any reasons for this?

I doubt that there's an underlying reason for any "large" fluctuations in Mesa's share price. It's not uncommon for penny stocks to see wide swings on a percentage basis.


User currently offlineTango-Bravo From United States of America, joined Jun 2001, 3805 posts, RR: 29
Reply 4, posted (5 years 10 months 2 days 7 hours ago) and read 2466 times:

Given the "Extreme Roller Coaster" ride that has been the price of Mesa stock over the past 6 months or so...is this really anything at which we should "sit up and notice?"

User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5432 posts, RR: 7
Reply 5, posted (5 years 10 months 2 days 7 hours ago) and read 2454 times:

Morningstar put out a report this morning called "5 Stocks That Look Completely Worthless." Mesa was one of them.


I love long German words like 'Freundschaftsbezeigungen'.
User currently offlineEnilria From Canada, joined Feb 2008, 7164 posts, RR: 13
Reply 6, posted (5 years 10 months 2 days 6 hours ago) and read 2399 times:



Quoting Pohakuloa (Reply 1):
On a smaller note. Only other thing I can think of (though having little to no obvious affect) is that in the Hawaii market, Mokulele starts jet service (E170) on 19 Nov 2008 (this wednesday) competing directly with Mesa in the island market. Arguably it could be said they are competing with everyone, but Mesa stands to lose the most with this new entry.

Let me first disclose that I hate Mesa and JO. Having said that, the vast majority of their operations are with UA and US, right? That stuff is basically guaranteed to make a profit. Why is a company with a guaranteed profit on the vast majority of its operations worth $5 million?


User currently offlineT prop From United States of America, joined Apr 2001, 1029 posts, RR: 1
Reply 7, posted (5 years 10 months 2 days 5 hours ago) and read 2330 times:



Quoting Pohakuloa (Reply 1):
On a smaller note. Only other thing I can think of (though having little to no obvious affect) is that in the Hawaii market, Mokulele starts jet service (E170) on 19 Nov 2008 (this wednesday) competing directly with Mesa in the island market. Arguably it could be said they are competing with everyone, but Mesa stands to lose the most with this new entry.

go just anounced thier 'shot across Mokulele's bow fare' ..err I mean holiday fare sale today $49 starting tuesday till 12/31.

http://www.honoluluadvertiser.com/article/20081117/BREAKING01/81117033


User currently offlinePohakuloa From United States of America, joined Jun 2006, 418 posts, RR: 0
Reply 8, posted (5 years 10 months 1 day 23 hours ago) and read 2157 times:



Quoting T prop (Reply 7):
go just anounced thier 'shot across Mokulele's bow fare' ..err I mean holiday fare sale today $49 starting tuesday till 12/31.

http://www.honoluluadvertiser.com/ar...17033

LoL!!! Wow!!!! Threatened much me thinks!



Fast cars and 'Jet A' - such a sweet smell!
User currently offlineApodino From United States of America, joined Apr 2005, 4272 posts, RR: 6
Reply 9, posted (5 years 10 months 1 day 9 hours ago) and read 2013 times:



Quoting Enilria (Reply 6):
Let me first disclose that I hate Mesa and JO. Having said that, the vast majority of their operations are with UA and US, right? That stuff is basically guaranteed to make a profit. Why is a company with a guaranteed profit on the vast majority of its operations worth $5 million?

Not necessarily. The United contract was bid so low, that now even the United Operation is losing money, especially with the ORD operation and having crews time out, and planes out of position and everything like that. It all adds up.

The only two aspects of the Mesa operation that have been moneymakers have been the Delta flying (In fact this flying is so key to their business plan that if they lose it, they say they will have to file bankruptcy, which is why they are trying so hard to keep it), and the USAirways flying. Now what happens with the USAirways flying if Mesa goes under is the big question, because its a huge operation in CLT with the 900's and out in PHX, Mesa is the only US Express carrier. It won't be easy to replace that flying.


User currently offlineSaab2000 From Switzerland, joined Jun 2001, 1610 posts, RR: 11
Reply 10, posted (5 years 10 months 1 day 9 hours ago) and read 1990 times:



Quoting Apodino (Reply 9):
It won't be easy to replace that flying.

I know of at least one carrier that would love to have it. I think you do too. Speaking of which, when is their contract with US Airways up? I have heard that US does not intend to renew the contract with Mesa when it expires.



smrtrthnu
User currently offlineApodino From United States of America, joined Apr 2005, 4272 posts, RR: 6
Reply 11, posted (5 years 10 months 1 day 8 hours ago) and read 1968 times:



Quoting Saab2000 (Reply 10):
I know of at least one carrier that would love to have it. I think you do too. Speaking of which, when is their contract with US Airways up? I have heard that US does not intend to renew the contract with Mesa when it expires.

Not sure, but someone said it was up next year. As far as ZW getting the flying, I am hearing all kinds of rumors about additional flying for ZW, and much of the rumors circle around flying that Mesa is currently doing. The big rumor right now is that ZW is going to get Q400's to replace the Mesa Dash 8 flying in DEN for United.

Of course, these are all just rumors, and I will believe it when I see it.


User currently offlineLoggat From United States of America, joined Feb 2000, 666 posts, RR: 0
Reply 12, posted (5 years 10 months 1 day 5 hours ago) and read 1911 times:

I think the PHX exclusivity deal runs out next year some time, and Mesa's actual flying contract with US goes to about 2013.


There are 3 types of people in this world, those that can count, and those that can't.
User currently offlineOswegobag From United States of America, joined Oct 2008, 169 posts, RR: 0
Reply 13, posted (5 years 10 months 1 day 5 hours ago) and read 1889 times:

Is there an escape clause in the regional contracts protecting the airline if the regional files bankruptcy? If Mesa filed BK, I wonder if another regional would make some kind of deal with Mesa's creditors to try to pay them off some of the debt (pennies on the dollar) to buy the airline and secure the flying Mesa currently has.

User currently offlineGoldenshield From United States of America, joined Jan 2001, 6027 posts, RR: 14
Reply 14, posted (5 years 10 months 1 day 4 hours ago) and read 1846 times:

Looks more bleak for them now. They just closed a $0.1804.

How many shares would they need to issue now to reach that magical $1 mark? Anyone care to venture?



Two all beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun.
User currently offlineNkops From United States of America, joined Jun 2005, 2664 posts, RR: 6
Reply 15, posted (5 years 10 months 1 day 2 hours ago) and read 1759 times:

I think this was discussed before, but when exactly does NASDAQ de-list this stock??

I am so glad I got rid of my MESA stock when I left the company back in '03.



I have no association with Spirit Airlines
User currently offlineBravo1six From Canada, joined Dec 2007, 397 posts, RR: 2
Reply 16, posted (5 years 10 months 1 day ago) and read 1703 times:



Quoting Oswegobag (Reply 13):
Is there an escape clause in the regional contracts protecting the airline if the regional files bankruptcy? If Mesa filed BK, I wonder if another regional would make some kind of deal with Mesa's creditors to try to pay them off some of the debt (pennies on the dollar) to buy the airline and secure the flying Mesa currently has.

The clause is likely in the CPAs, but you can't terminate a contract solely because a company files Chapter 11. If they file Chapter 7 that's a different story.


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