ExpressJet (XJT)

[mtrewulf]

Interesting that these people are all of a sudden coming out of the wood work reporting ownership. Yesterday Credit Suisse 13.8 percent of ExpressJet. Maybe this thing might start moving!?!?!?!?

[mtrewulf]

AP
Quattro Global owns 11.8 percent of ExpressJet
Wednesday September 10, 5:53 pm ET
Quattro Global Capital owns 11.8 percent of regional carrier ExpressJet


HOUSTON (AP) -- Investment manager Quattro Global Capital LLC said in a filing Wednesday that it owns 11.8 percent of the stock of ExpressJet Holdings Inc., which is attempting a reverse stock split to keep trading on the New York Stock Exchange.
New York-based Quattro owns the Quattro Fund Ltd. ExpressJet operates regional flights for Continental Airlines Inc. It shut down its own branded carrier and flights for Delta Air Lines this month.

ExpressJet shareholders are scheduled to vote Oct. 1 to consider a 1-for-10 reverse split of common shares, a move designed to boost the shares over $1 to avoid a delisting.

The shares rose a penny to 21 cents.

[klonnie24]

Noone bought yesterday? Who buys on Sunday...It's a football day not a trading day...think maybe you are a day or two ahead of yourself.

[downsideup]

Accumulation patterns in the buying yesterday and again today. Apparently the future for XJT is so ugly that someone wants to own a large number of shares...

[frenchee]

With the analyst ratings so negative, next surprise likely to be on the upside...


ANALYST RATINGS RELATED INFO: • Reuters Research


ExpressJet Holdings Inc.

Mean Rating
Based on scale of 1 to 5* Current Last Month 2 Months
Ago 3 Months
Ago
Company 4.50 3.80 3.62 3.40
Industry ( Airlines) ...
Sector ( Transportation) ...
* Scale based on the following: 1 equals strong buy, 2 equals buy, 3 equals hold, 4 equals underperform, 5 equals sell.

[frenchee]

Key insider buying...

8/29/08 KELLY T PATRICK D Bought 282,350 $0.2 $55,453
Source: First Call / Thomson Financial

[Skidzzz]

Let's not forget the soon to be reverse split.

[klonnie24]

Thanks bubb? What's a bubb? XJT turn down of a 3.50 offer was the single stupidest BUSINESS decision the company has ever made. How do you know what would of become of the employee's? The pilots were all cry babies anyway and should all be fired then gagged like a pink T/A. I don't care about you or how many shares you own or the pathetic attempt to revive this dead board.
turning down a buyout offer of 3.50 so your stock price could sink to 20cents is a bad business decision and as long as XJT is going to be the "caring" company they will never be anything but bankrupt. You people justifying Managements actions make me sick...

3.50 or .20 wich one would you want

Crap in one hand wish in the other then let the board know wich one filled up faster.

[jetjock69]

let me tell ya bubb, XJT turning down SkyWest was the best thing that ever happened. Maybe not on the front side but for sure on the back side.

Skywest was going to dismantel XJT piece by piece until there was nothing left, including the guys that drive the planes. If you think this is good practice.... your wrong.

You may have missed out on a couple of bucks but at least there is still 7000 plus people making a somewhat liveable wage.

Do I own? yes... 10k shares... am I waiting for the come back that will happen in the future? Sure I am, just as the other people that put money into this company.

Please dont insult the bigger picture of the airline industry by saying skywest was going to be the best thing that ever happened to XJT. Just ask some of the people that fly for them.

[downsideup]

I don't expect any management to have a perfect crystal ball...

But I do see that the same rocks you are throwing at them, you could just as well throw at all the investors (including yourself ?) who didn't sell when the shares had run up from $2 to over $3 on takeover speculation ??? Or, as a SKYW shareholder you could ask "what were our management thinking, offering that much for that company...?"

Why do you expect either management would have known any better than other investors what was going to happen next ???

I still see that management made rational choices... to liberate the company from the onerous anti-competitive provisions of the CAL contract... which rationally would have allowed them to make the airline worth a lot more than it ever would be as a SKYW subsidiary still saddled by the CAL contract provisions. And that new, expanded potential still exists... even with the share price where it is now.

I don't like what appears to be their tacit cooperation in the market events around the buyout of half the notes... and haven't been an apologist for them where I disagree with them... which still doesn't mean that every decision they've made was fully predictable as wrong in its inevitable result when the decisions were made.

If I were them, in the situation they were in re CAL and SKYW, I'd probably have done something much like what they did...

If I were them in the situation they were in relative to the notes... I expect I would have made very different choices.

My overall analysis of the management is that it seems they are really pretty good at operating an airline... but are not all that good in the strategic and tactical maneuver in corporate governance, where it seems they have been led around by the nose by their financial advisers. The CFO got fired... too late for that do any good for shareholders. Management seems not to have the financial market skills they need to be able to do the job that shareholders need done. I expect the new owners... like it that way. Looking forward, you likely can't honestly claim to be surprised by the impact of that now known situation...

[klonnie24]

Well, Thats obvious............

You ask a lot of questions now that the company sank to a all time low. recheck your charts on XJT and admit the company not accepting the 3.50 offer was a mistake. that will be your first step.

[downsideup]

I'm not an investment adviser, and I'm not here advising anyone what to do... haven't told anyone they should buy or average down rather than make their own decisions... I'm just sharing MY opinions. If you don't like 'em... fine. If your perspectives and opinions on what is happening in the market for these shares are vastly better than mine... ??? ... where are they... ?

Looking back at the last week or two here... I'm not seeing that I was too far off in noting the predictors of change here and calling attention to them before the changes occurred ???

Otherwise, I don't think the price action on one day, or one week, or one month... determines the outcomes of investments which will likely take some time to reflect changes in the company, in the markets for the product of the company, and in the economy...

There are different interests to consider here... ranging from the concerns of day traders to those of long term investors... with focus elements ranging from technical aspects only day traders will care about... to fundamental elements only long term holders need to consider.

"Don't watch" what is coming and "Bollies pinching to a point"... were wrong ??? Likely doesn't or shouldn't matter much to long term investors that share prices are lower now than they were two weeks ago... but some traders likely found those notes timely ???

So, where do you think the share price will be next week, next month, next year... three years from now?

What are the odds the company will be bought out in the next six months... or that the unions will refuse to make concessions ???

I guess, if you don't post any opinions, I can note that you haven't been right once, ever... ???

[mtrewulf]

no you were speaking about me.

"You post nonsense Downside you post your consistent avg down buying on XJT and as the company crumbles to nothing you continue to provide dialogue that is worthless and misleading to people who don't know or understand any better."

Downsides previous post was to ME, "people who don't know or understand any better" according to YOU.

PS: Do you own XJT????????

[klonnie24]

I wasn't talking to you, speak to who you wish. First time I've ever read a post from you is the reply you gave me


All My posts are in my own opinion I'm sure your opinion will differ and your welcome to post it cause thats What IHUB is for.

[mtrewulf]

I'll speak for myself klonnie24 if you don't mind. By the way, are you a XJT shareholder?

[klonnie24]

You have never once been right......Ever

You post nonsense Downside you post your consistent avg down buying on XJT and as the company crumbles to nothing you continue to provide dialogue that is worthless and misleading to people who don't know or understand any better. Mark this post XJT will R/S then the PPS will fall quick once again bringing the company to a new exchange called OTCBB. After the R/S the PPS will hit .00 and the PK pump and dump people will be all over it.

well, maybe not in that order.

This entire post is my own opinion should your opinion differ please post it cause thats what ihub is for.


All My posts are in my own opinion I'm sure your opinion will differ and your welcome to post it cause thats What IHUB is for.

[downsideup]

Funny thing is that while it seems obvious that XJT shares are getting whacked by the news of the reverse... the other airline stocks are also getting whacked pretty hard now, albeit in slower motion, by the market recognition that minor oil price declines based on demand destruction aren't necessarily particularly beneficial to airlines. XJT is performing in line with others, like AAI and UAUA, and is actually outperforming PNCL... at least on a short term chart.

The oil markets today seem to be shifting to focusing on the hurricane in the Gulf, but the creeping awareness that Russia invading Georgia is a major problem with global scope that seems it is not going away quickly... together with the lack of an oil market response, seems to be focusing people here on the reality that demand destruction that is ongoing. That is making it look more like the slow down in the U.S. economy is going to be felt even more, and more than expected, overseas, and that suggests it might take a bit longer than most have expected to complete a correction here. The U.S. might be first to emerge from the decline... which is no great comfort when the rest of the world is still in the entry phase ???

None of that is useful in looking for any silver linings in the market action here... but, at best, it lumps you into the camp with others who have nothing good to see, other than "misery loves company" ??? At best, you might see the evolution as suggesting the Fed has got it right... cushioning the blow in the U.S., while the European banks have created a potential problem with their reluctance to recognize the situation we have doesn't make inflation the greatest risk factor.

So, is all the bad news for XJT fully out on the table, now ??? There is still the matter of contract adjustments to be negotiated... and ongoing risk related to the economy and its impact on XJT customers... but, on a short term basis, it seems like XJT might be getting close to being a tad oversold here at $0.16 per share ??? Hard to say, still, given the overlapping elements in the dynamics... and it might be necessary to see something resembling a capitulation here before the markets accept it ?

[mtrewulf]

Note to self, DON'T WATCH.................ughhhhhhhh

[novicetrader]

This is my understanding-The O/S(outstanding shares) is the one that would come down automatically by one-tenth,by a 1-for-10 R/S.The Authorized can be kept at a higher figure if the company so chooses,to give them room for future transactions.That is to say,the company does not have to bring down the A/S to 40 million from 400 million.
Will someone confirm the above please.This is the way I understand it.

[novicetrader]

[klonnie24]

How does that math equate? how does the S/A go from 400m to 150m on a 10-1 R/S?

If you have 10k at .38 I would think you'd be left with 1,000 shares with a PPS of 3.80 after the R/S. But the 150m thing still has me puzzled someone explain on a 10-1 why there wouldn't be 40m S/A after split?
Increase the A/S only to do a R/S is not seen as a good thing.

[jetjock69]

so in lame terms what does this mean to someone that has about 10k shares with a cost basis of .38/share? thanks

[mtrewulf]

(AP:HOUSTON) ExpressJet Holdings Inc., which operates regional flights for Continental Airlines, said Friday it will hold a shareholder meeting Oct. 1 to consider a reverse stock split.

The company said in a regulatory filing that shareholders will vote on a 1-for-10 reverse split of common shares and whether to reduce authorized shares from 400 million to 150 million.

Houston-based ExpressJet said it needs the reverse split to avoid the delisting of its shares by the New York Stock Exchange, which demanded that the average share price rise above $1.

Shares closed Friday at 23 cents and were unchanged for the day.

Earlier this summer, the company announced it would repay debt by issuing new stock, which would reduce the value of current shares.

ExpressJet lost $31.7 million in the second quarter and is demanding wage concessions from employees to return to profitability. The company, which was spun off from Continental, is ending feeder service for Delta Air Lines and grounding its own ExpressJet Airways next month.

ExpressJet has been exploring strategic possibilities including a possible sale. It rebuffed an unsolicited takeover bid from SkyWest in April.


Copyright 2008 The Associated Press. All rights reserved.

[novicetrader]

I'm totally with you on that.I've quit looking at it too.
I think we'll be fine on it someday.For now,let's leave it on the back-burner.
Good luck to all of us here.

[mtrewulf]

LOL, well I appreciate the latter very much and will put the day to day on ignore for a while. I agree, the game is fixed.

[downsideup]

Or, I could have posted:

Bollies pinching to a point...

[downsideup]

I've pretty much quit bothering with the day to day happenings here...

They've done what they've done and that is that. My opinion is that management should be in jail now, instead of running an airline, but I recognize that won't happen. They screwed their shareholders... because they know they don't work for the shareholders. They found that keeping their jobs was more important to them than doing the right thing for the owners... and I think that is criminal.

There are still unresolved questions... but the probability of the SEC actually protecting shareholders from bad management or financiers bad intent, and insisting that the management should work for the benefit of shareholders instead of designing to facilitate financiers robbing them... ??? The SEC is owned and operated by and for the benefit of the crooks, not owned and operated for the benefit of shareholders or the public. Is it that organized crime in fact runs Wall Street... or just that Wall Street is organized to and does in fact operate as a criminal enterprise ??? Both ??

The public interest is in having markets that function properly to facilitate trust and capital formation... not in having markets that intend to and do enable outright theft from investors as the management, financiers and authorities all wink and nod at each other. Similar issue with the broader "debates" re the utility of enabling short selling and the rules that do or should govern it... is it a legitimate public objective to deliberately enable profit from the destruction of capital ??? Or, is it only legitimate to engage in deliberate destruction of capital until those designing those rules are themselves put at risk by them ? Or, legitimate only until it threatens to fully destroy the underpinnings of the economy ???

The market reality is that shitting in your own nest in those ways has real consequences in both the short term and long term ... with more to follow... either by "corrections" that send some number of perpetrators to the housgow... and I expect that there will be events of reform will include a number of public servants in that number... OR the market over time will tend to more properly reflect the value or lack thereof in the utility of the market itself. Past speculative excesses are not the issue... as opposed to the current excess inherent in enabling the sure thing that is wrong.

XJT is a case study... and it is being studied...

The rest that is specific only to these shares in the here and now...

The time line here is now driven by two elements. One is the events taking place at the pace at which business developments occur. The other is the market reality that post dilution share prices are being allowed to, encouraged to, deflate... while it appears that shares are being bought up in accumulation mode by the big players. The timing is being driven by those two events... and by the union decisions to sign contracts, or not, by the performance to be seen at the end of the current quarter, and that which will be seen in the next. I'm not going to worry much about much of it until after the results from operating for a full quarter under new contracts and without branded are available...

I see no reason for long term holders to sell here... see few real reasons to avoid the shares now, as the risks are more than fully priced in... and see no reason to think you need to make rapid decisions in regard to these shares.

[mtrewulf]

Thanks so much for the updated figures and perceptive analysis. As it stands the pre-diluted shareholders that
are more resent with our purchases should be alright if .75 is still the post diluted value. I think my avg is around .35
and have been holding in spite of all my co-XJT investors throwing in the towel. LOL
PS: my apology for the out dated figures.

[downsideup]

They'll keep shaking the tree as long as shares keep dropping out when they do. The impact of completing the dilution from the conversion of debt changes a lot in the dynamic, here, most notably altering dramatically the portion of institutional ownership, and the meaning of the other numbers based on shares outstanding... so mtrewulf's post is inherently incorrect, being based on an outdated number of shares outstanding.

Total Shares Outstanding 51,856,425
% Owned by Insiders 8.42 %
% Owned by Institutions 75.40 %

Total of 83.82 %... but, insiders and institutions now own something closer to 95 % of the total... and the market cap is a bit higher, too... with more shares out.

Shares Float 52,090,400
Total Shares Outstanding 51,856,425
% Owned by Insiders 8.42 %
% Owned by Institutions 75.40 %
Market Cap. $ 13,996,049

Here is the current data from Yahoo:

Shares Outstanding5: 216.94M
Float: 216.44M
% Held by Insiders1: 2.04%
% Held by Institutions1: 17.30%
Shares Short (as of 28-Jul-08)3: 8.18M
Short Ratio (as of 28-Jul-08)3: 4.4
Short % of Float (as of 28-Jul-08)3: 15.90%

Looking at that, it makes sense that the insiders ownership percentage was diluted along with other holders... but, it makes no sense to me that the institutional holdings were diluted, too... unless the converted shares aren't held by institutions ???

Still don't have an answer to the question of who the note holders are/were... so, not knowing who is driving the bus, it is still harder than it should be to figure out where they are intending to go, and what the schedule looks like.

Hayman clearly was correct in identifying a problem with a management that has far too little ownership incentive to do anything that is even close to being the right thing for shareholders. The key question, post conversion, is who are the new owners, and how responsive will management be to shareholders interest now ???

I expect there is ongoing interest in taking over XJT... and, while management was correct that the company was worth a bit more than was being offered by CAL... that same market value now is had at only $0.75 a share... The right question for shareholders, then, wasn't "what is the company really worth"... it was "who is going to gain the benefit of a sale for fair value". Not pre-dilution shareholders. The company will sell for a higher value... it just won't be pre-dilution shareholders who gain any benefit from a higher price.

[klonnie24]

I'm not really sure, definatly manipulated but by who and why I haven't a clue. I've watched the stock forever as much as the Airline sector complained about oil prices in the 140's and tanked the PPS I just would have figured XJT would bounce off decreasing oil prices. I do know the A/S was recently Increased and I can only imagine some offloading is to keep the company from going belly up until either sell out for much cheaper or get some new routes.

[TikiGal]

Who are the people behind XJT management? Beavis and Butthead?

This stock is really starting to weigh on my last nerve. I think watching paint dry would be more entertaining at this point.

They start to eat thru .25, but than bam .24's show right back up on the Ask. Someone is holding this down for a reason. Why?

[klonnie24]

I hope so, I do own it.....

[PIZZABUSTER1]

I GOT BETTER ONE ITS GOING TO BE BOMBASTIC,,,

[klonnie24]

This is still by far the best line ever by XJT Mngmt.

"The special committee indicated the $3.50 per share price proposed by SkyWest does not fully and fairly reflect the inherent value of ExpressJet or its prospects, whether as a stand-alone company or part of a larger entity."


Hahah WOW!!!

[TikiGal]

This is for tommorow :)

Gooooooooooooo XJT before I roast you over the fire.

[mtrewulf]

ExpressJet Holdings Inc. $ 0.27
XJT 0.02

Short Interest (Shares Short) 8,178,200
Days To Cover (Short Interest Ratio) 3.2 <<<<<NOTE
Short Percent of Float 15.70 %
Short Interest - Prior 5,039,300
Short % Increase / Decrease 62.29 % <<<<<<<<<<NOTE
Short Squeeze Ranking™ -47

% From 52-Wk High ($ 4.91 ) -1718.52 %
% From 52-Wk Low ($ 0.22 ) 18.52 %
% From 200-Day MA ($ 1.83 ) -577.78 %
% From 50-Day MA ($ 0.37 ) -37.04 %
Price % Change (52-Week) -93.50 %

Shares Float 52,090,400
Total Shares Outstanding 51,856,425
% Owned by Insiders 8.42 %
% Owned by Institutions 75.40 %
Market Cap. $ 13,996,049
Trading Volume - Today 218,658
Trading Volume - Average 2,518,700
Trading Volume - Today vs. Average 8.68 %
Earnings Per Share -2.11
PE Ratio
Record Date 2008-AugA

Sector Services
Industry Regional Airlines

[RonnieD]

I picked up some of this bad boy late yesterday and this morning.. impressive revs let's see it turn around from here.

Go XJT.

[mtrewulf]

.23 to be exact


"When the power of love overcomes the love of power, the world will know peace."
-Jimi Hendrix

[downsideup]

Down to $0.25... with almost 2 million shares in accumulation over the prior two trading sessions...

[downsideup]

Gone only because traders put in more prices between the pennies pushing it off the screens... still there...

Also note there is a HUGE list of numbers on the ask side, that spreads sells out all in blocks smaller than 50K at prices all the way up to $15.

Otherwise, the trades are unusual today, too, with the vast majority of shares moving being intermarket swaps. Also far more than average in the number of blocks being bought outside the range of the the bid/ask, with most of that being trades at prices higher than the market.

[downsideup]

And, now it is gone...

[downsideup]

Wow. A pretty big block on the bid just popped up... 452,000 shares to buy at $0.25. Then, everything just stopped... and now it just dwarfs everything else on the screen, making every other block look insignificant... flat as a pancake...

[novicetrader]

Thanks for the reminder on that.I guess with so much happening on XJT lately with no effect on the share price,I had kind of stopped watching it that closely,sort of resigned myself to holding this for quite sometime more.Hope we're given some kind of a pleasant surprise when we least expect it.
And thanks a lot for all the in-depth details of your posts.
Good luck to all of us.

[downsideup]

The only thing I find now is this:

The company will report its second quarter financial results and provide a further strategic update on Wednesday, August 6, 2008, at 10:00 a.m. EDT (9:00 a.m. CDT).

I don't think what we got today could be considered a strategic update... but, it might mean only that I was off by a day and we got what we are going to get... ???

[downsideup]

They had previously announced that the day after the earnings call they would have a public statement to make about the recent events and their "strategic choices" or regarding "strategic options" or "direction" or some such thing.

The meaning of that is not at all clear. It could mean anything from finally fessing up and administering the coup de grace in "we sold you out and you are screwed" to an announcement of an acquisition plan or some other element that is "strategic" and not yet considered in the valuation of a share.

It could turn out to be something that turns the tables in the current discussions about the future of the company and the value of a share... or it could turn out to be nothing. I expect that with the ownership having changed, it may be the statement the new owners intend to make about what they plan to do next... which would have been more useful for everyone else BEFORE they took 75% of the company for a roughly $30 million consideration. It might include a discussion of legal options resulting from recent events... but I doubt that they will make any effort to follow up on SEC and NYSE complaints... but, I could be wrong about any or all of that.

[novicetrader]

I've been following up your posts on Yahoo,where you seemed to mention some event tomorrow for the company.I guess I must've lost track,but is something scheduled for tomorrow?The earnings & CC are already over today,so what's for tomorrow?

[downsideup]

I've been posting more on Yahoo...

It does seem likely that the current market dilution risks, in some part, were pre-limited as some of the conversion shares were probably pre-sold. My guess is that their average presold price was close to $1... but it could be more. Likely was the note holders shorting... to drive the price down to force conversion at more favorable rates... more shares per note... and they did get 75% of the stock for half of the debt they held. Now, with the shares in hand, they can cover the shorts and convert notes worth only $500 in the market, into a face value of roughly $2700... just by covering the existing shorts. That, and they still hold shares, and still hold notes that now have a higher coupon.

My look in the rear-view mirror suggests that the note holders converted half their notes into a value that exceeded the face value of their entire original investment. They still have half the debt in hand, and likely still own the majority of the company, too... ???

Add to that... we're not done yet...

It SHOULD raise questions about the naked shorting that did occur. Some obvious concern here about who was lending shares to be shorted... when perhaps there weren't all that many shares to be had to be shorted ??? The shares were authorized, but they weren't issued... so to the degree un-issued shares were used to short against, those who were shorting them were violating the exchange rules by conducting an unauthorized underwriting. THAT is a new wrinkle on complaints about abuse of or by shorts that I've not heard before...

[TikiGal]

They have to be diluting. Now the question is when will they be done and how bad will the damage be? Ugh!

[learner1156]

SkyWest, ExpressJet report results ahead of Street expectations

By Christopher Hinton, MarketWatch
Last update: 8:59 a.m. EDT Aug. 6, 2008NEW YORK (MarketWatch) - SkyWest Inc. and ExpressJet Holdings Inc. reported better-than-expected results on Wednesday, even as jet fuel prices hit record highs.
For the recent quarter, St. George, Utah -based SkyWest said net income fell to $36.4 million, or 63 cents a share, from $40.6 million, or 62 cents a share in the year-ago period.
Analysts polled by FactSet Research expected, on average, earnings of 59 cents a share.
Operating revenue climbed 11% to $950.8 million from $866 million, due primarily from an increase of fuel reimbursements by major partners. Total fuel expense in the quarter was $366.5 million, or 6 cents per available seat mile. Last year the company paid 5 cents per available seat mile.
Excluding fuel, operating expenses rose 4.4% to 9 cents per available seat mile.
SkyWest (SKYW:SKYW
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, , ) said it had $669.3 million in cash and marketable securities on the books as of June 30, up from $660.4 million.
During the quarter, SkyWest received $6.3 million from Continental Airlines (CAL:CAL
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, , ) as a break-up fee related to the failed acquisition of ExpressJet (XJT:XJT
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, , ) .
Shares of SkyWest closed Tuesday at $16.54, up 5.7%, amid a broader sector rally that was spurred on by the falling price of oil.
Separately, ExpressJet reported a second-quarter loss of $31.7 million, 62 cents a share, compared to a loss of $26.4 million, or 49 cents a share in the year-ago period. Total operating revenue rose 13% to $447 million from $395.6 million.
Excluding one-time items, the company said it lost 27 cents a share in the most recent quarter. Analysts had expected, on average, a loss of 37 cents a share.
Shares of ExpressJet added a penny in premarket trading to 31 cents a share.
On June 4, the Houston-based carrier said it amended a 7-year capacity purchase agreement with Continental, effective July 1 and covering 205 aircraft for the first year and a minimum of 190 aircraft for each remaining year.
The company also ceased flying for Delta Air Lines (DAL:DAL
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, , ) , returning 10 aircraft to Continental, and suspended its branded flying operations.
In the second quarter, ExpressJet operated a total of 215 aircraft under capacity purchase agreements with Continental and Delta.
ExpressJet had $191.7 million in cash, equivalents and short-term investments at the end of the quarter.
Christopher Hinton is a reporter for MarketWatch based in New York.

[downsideup]

I agree it is worth more, and I expect the market will recognize that too... but, there are a lot of unanswered questions related to things that are ONLY relevant as issues in terms of the market dynamics. There are many companies that are worth more than their share prices indicate. Whether this goes up or down from here really seems it is much more about the market drivers than about fundamental value.

I expect the questions will be answered on Thursday... in part, at least. That the market is behaving as it is now does give us a good indication that perhaps the dilution risks have been over marketed. I think the shorts and bashers have erred in the elements that are driving the conversion... not note holders converting to get liquidity they didn't have... but note holders converting either to try to take control of the company, or converting because it is a really good investment strategy. The lack of selling thus far, and a solid day of accumulation today, suggests that we may not see the massive share sales many expected to materialize ? If you sold for immediate liquidity, you don't need to wait for the strategic update on Thursday to sell.