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I'm hoping now that the dust has settled on the note issue,things will stabilize from hereon.This just can't be worth only 30 cents!
Earning report out tomorrow... 10:00 am Eastern
Half a million shares in accumulation today...
Hmmm.
Drifted up to $0.34 in after hours...
Still a number of unanswered questions, which will need to be answered pretty soon. I'm guessing that the "strategic update" will be timed to coincide with the requirement for timing in SEC filings on new stock holdings... so at the same time as we find out who, we will likely also find out what happens next ?
Word now is that the notes were selling for $0.45 on the $1 before XJT paid full face value for them in shares. Makes this look more likely than not that what was driving the stock was, in part, the need or desire of the bigger players to bail out debt holders. That they bought shares at $0.37 likely doesn't mean much right now... at least not as much as who they are and why they converted. If they converted simply to gain liquidity they didn't have in the notes, there could be some significant selling. I think we would have seen that presaged in the trading and prices on Friday.
Having converted, they'd still more likely rather not take the cash and run rather than see a profit instead of a loss on their investment ?
The financial picture is changed somewhat by the conversion, too, with the elimination of about half the notes. Without the recent drag on the bottom line from branded, XJT would have been profitable recently. Under the new CPA the fuel costs are covered by CAL, so no real future benefit is available to XJT from declining fuel prices... other than increased business... but also no hit from higher fuel costs if oil goes higher. The shift on the balance sheet resulting from the conversion looks like XJT will still be worth roughly $1.25 a share based only on asset value. The rest is dependent on XJT doing a good job of controlling expenses... which they were able to avoid as a function of below market fuel costs under the old contract. With those efforts already being implemented, it looks as if XJT may be profitable again beginning in September ???
There appears to be an ongoing interest in acquiring XJT... which I expect may be made more apparent on Wednesday ?
Where this goes next is, in my opinion, now primarily a function of who converted, why and what they intend to do with their shares... which we likely won't know for a few days yet.
"a further strategic update on Wednesday, August 6, 2008, at 10:00 a.m. EDT (9:00 a.m. CDT)."
Great. Hurry up and wait... but for what ???
Or, I guess I could have posted "Weeeeeeeeeeee. $0.31 !!!! " ???
So, what we are getting is the muddle in the middle... ???
Or, will the anti-takeover provisions kick in on Wednesday and dilute new note holders as much as the common shareholders ?
Seems unlikely, now. Probable the notes that were tendered were those grandfathered under the holding period in which the shareholders rights were stripped away. It is looking more and more like the plan is for a take down with the tacit cooperation of management and the board instead of a take over.
It does suggest there may be some legal issues relative to the actions of a board that doesn't represent ALL the shareholders interests... rather than a specific set of minority shareholders interests.
It looks like the note holders weren't math challenged. No BK and no massive dilution. A net grab bag of technical improvements in the company financial position, but also not anything near a painless total victory for the company and shareholders. Looks like there may still be a "buyout" going to happen soon, only this time for less $ per share, even if it is more in total that will be paid for the company... So, the new owners (Haywood / CAL ?) will get to pay more $$$ for the company in a buy out than SKYW, but in buying it they will be paying the $$$ to themselves... ???
It appears that everyone here likely comes out ahead EXCEPT for the long term share holders...
I don't see these kinds of events happening without changes: a new management and board... which given the recent problems should be all to the good... save that with majority control they will be more likely take it private and deny shareholders the future benefit of having held when the business does turn around.
The company does cut its debt in half... but while the debt has half the face value in $$$, it still delivers an INCREASED cost in debt payments, as the interest rate goes up to 11.25% from 4%.
Don't have a clue where this is going next... other than that it is drifting higher now with ZERO selling pressure. So, hold, wait and see...
ExpressJet Reports Expiration of Tender Offer and Notes to be Repurchased
Friday August 1, 1:00 am ET
HOUSTON, Aug. 1 /PRNewswire-FirstCall/ -- ExpressJet Holdings (NYSE: XJT - News) today announced the expiration and results of its tender offer with respect to $128.2 million aggregate principal amount of its 4.25% Convertible Notes Due 2023.
ADVERTISEMENT
(Logo: http://www.newscom.com/cgi-bin/prnh/20080221/NYFNSN01LOGO)
The Paying Agent, The Bank of New York Mellon Global Corporate Trust, reported that $58.9 million in aggregate principal amount of outstanding notes had been validly tendered for purchase as of 5:00 P.M. Eastern on July 31, 2008. As a result and pursuant to the terms of the tender offer, the company will issue 161,494,295 shares of common stock in payment of the repurchase price for the principal amount of the notes validly tendered and to settle accrued and unpaid interest due August 1, 2008.
Following the completion of the tender offer, the company will have $69.3 million aggregate principal of its 4.25% Convertible Notes due 2023 remaining outstanding. Noteholders of record on August 2, 2008, will automatically receive the benefits of the supplemental indenture that becomes effective the same day. From August 2 forward, the notes will be referred to as 11.25% Convertible Notes due 2023.
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).
A live webcast of the call will be available at www.expressjet.com. To access the conference call by phone, dial (866) 638-3022 approximately 10 minutes prior to the scheduled start time and ask to join the ExpressJet call. International callers should dial (630) 691-2765.
About ExpressJet
ExpressJet Holdings operates several divisions designed to leverage the management experience, efficiencies and economies of scale present in its subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services, LLC. ExpressJet Airlines serves 166 destinations in North America and the Caribbean with approximately 1,450 departures per day. Operations include capacity purchase and pro-rate agreements for mainline carriers; providing clients customized 50-seat charter options; and ExpressJet branded flying, providing non-stop service to markets concentrated in the West, Midwest and Southeast regions of the United States. ExpressJet Services is the North American partner to three major European original equipment manufacturers and provides composite, sheet metal, interior and thrust reverser repairs throughout five facilities in the United States. For more information, visit www.expressjet.com.
--------------------------------------------------------------------------------
Source: ExpressJet Holdings
No news release until tomorrow...
Yahoo being inundated with positive hype in B.S. "fabricated news" type posts...
Would be nice if they were true... but I'll take them as a net negative indicator until I see the fact.
My prior was in error on the shorts... "only" 10% of the outstanding is held short...
THE OFFER TO EXCHANGE AND THE WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON JULY 31, 2008
That is... an hour after the close today.
We'll find out tonight or tomorrow morning what IS happening with the tender offer, instead of having nothing better than the people on the boards guessing what might be happening ???
Even the tenders in hand now won't actually be meaningful until 5 pm today, at which point they are what they are and can't be pulled any more ?
And then, there will still be questions :
If all the notes are tendered... BK... but there will be no debt to take any priority in the resolution of the BK if all the notes have been tendered... and the time the notes were bought will then be a thing that matters, when shareholder rights provisions kick in. So, IF all the notes are tendered, there will be dilution in the shares that are issued to older note holders, and dilution of the shares of newer note holders by the implementation of shareholder rights in the anti-takeover provisions. Seems that should leave existing common holders sort of in the middle... depending on how many of the notes were older, and how many were recently purchased ??? It would be useful to find out if there is volume/timing information available on trading in the XJT notes ?
If none of the notes are tendered... Hmmmmmm ? The risk of BK and the risk of any dilution evaporates... and a share is suddenly worth 3 to 5 times more than it is presently ???
If "some" are tendered... it will matter "how many"... and in determining dilution risk, it will still matter when the notes tendered were bought.
I expect the meaning implicit in the alteration of the rights that was just made, is that "someone" was active in buying up notes in the expectation that conversion would allow them to take control of the company. The change in rights would have put that expectation to rest...
It seems to me that one of the most misunderstood aspects in the evolving situation here is the BK risk. IF all the notes are tendered, there will be a risk of insolvency due to the inability of the company to pay the note holders in the specified currency: shares. At the same time, the tender will have eliminated all the debt... so there will not be any priority given to note holders in any BK... while pretty much leaving it up to a judge to decide what the company can and should do about making the payment to complete the tender offering. Of course, the company could also act, quickly, to solve the problem in any way allowed by the law and the indenture... before there is actually any real insolvency. Which is what I expect would happen IF all the notes are tendered.
I still tend to agree with others who say it looks like it will be, for all practical purposes, an "all or none" result... with "none" being far more likely than not. Those who do tender, if it is a less than meaningful number being converted, will likely get settled in the alternate currency... cash.
So, I'm still expecting, no BK, and no dilution... making a share worth 3 to 5 times the current price, with 20% of the shares held short... and, we should know soon.
ExpressJet Announces Execution of Unilateral Amendment of 4.25% Convertible Notes Due 2023
Wednesday July 30, 5:39 pm ET
HOUSTON, July 30 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc. (NYSE: XJT - News) announced today it has executed a supplemental indenture to unilaterally amend the indenture governing its 4.25% convertible notes due 2023. The company announced on July 22 that it had determined to enter into this amendment in order to provide improved terms and additional flexibility for the noteholders, and both the trustee under the indenture and the company executed the amendment earlier today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080221/NYFNSN01LOGO)
The benefits of the amendment will apply to any noteholder holding the notes on August 2, 2008 following the consummation of the exchange offer that is currently being conducted as required by the indenture. Under the current indenture, noteholders may require the company to exchange their notes on August 1, 2008 and the company has begun the required exchange offer with the intention to satisfy the obligation wholly in shares of common stock. Those noteholders who retain their notes will automatically receive the benefits of the unilateral amendment, including:
-- Security based on a pro-rata amount of collateral appraised at
approximately $181 million, including approximately $96 million in
spare parts and $85 million of spare engines;
-- Coupon increased from 4.25% to 11.25% over the remaining note term; and
-- An additional put right in three years or on August 1, 2011.
Now that the company and trustee have executed the supplemental indenture and the related security agreement, the company has filed these documents with the Securities and Exchange Commission via a Form 8-K, which is available on the SEC's Internet site (http://www.sec.gov).
ExpressJet Background
ExpressJet Holdings operates several divisions designed to leverage the management experience, efficiencies and economies of scale present in its subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services, LLC. ExpressJet Airlines serves 166 destinations in North America and the Caribbean with approximately 1,450 departures per day. Operations include capacity purchase and pro-rate agreements for mainline carriers; providing clients customized 50-seat charter options; and ExpressJet branded flying, providing non-stop service to markets concentrated in the West, Midwest and Southeast regions of the United States. ExpressJet Services is the North American partner to three major European original equipment manufacturers and provides composite, sheet metal, interior and thrust reverser repairs throughout five facilities in the United States. For more information, visit http://www.expressjet.com.
Important Information Regarding Tender Offer
This report is not a recommendation, an offer to purchase or a solicitation of an offer to sell any securities of the company. The company has commenced such tender offer as required under the indenture and filed with the SEC a tender offer statement on Schedule TO-I and related exhibits, including an offer to exchange, letter of transmittal and related documents. The company has also mailed such materials to the noteholders. Noteholders are urged to carefully read these documents, as they contain important information, including the various terms of, and conditions to, the tender offer. Noteholders can obtain a copy of the tender offer statement on Schedule TO-I, offer to exchange, letter of transmittal and related documents free of charge from the SEC's EDGAR database, which can be accessed through the SEC's Internet site (http://www.sec.gov).
Both hands...
Down to $0.28... Buying...
Post on Yahoo pointed out to me... that the tender offer isn't closed, yet, so share price moves today are still likely to influence note holders choices. Today making it clear they'll pay $0.37 a share... when they could buy it in the market for $0.30 today. Yep. That makes sense... at least for another day or two... the higher rate note with the security in tied assets might be looking pretty good to a note holder today who is making an economic decision. Those angling for shares to get power instead of safety and total return... still have to figure a way out of the box management has built to prevent dilution, or to prevent any change of control if dilution happens. Still looks like a win for the company to me... only with even better prices today than yesterday.
The patterns are looking like MM taking it down for someone to load up...but if it is the standard shaking the tree effort, there are some pretty large chunks of stuff falling out... but the volatility seems more absent in the afternoon... trading flat. Oil moving back up, airlines down on that... and the American Airlines debacle unfolding in the airports and on CNBC isn't helping anything... but they've been saying good things about CAL and its best in class effort, mentioning the better than average fleet of smaller planes...
Well, not looking like a rocket scientist so far today... LOL
Worst performing airline so far today... and I'm in the red along with everyone else on a full days volume already today.
I think it might take a little time for the reality of what is happening here to sink in, and more time for some than others. And, of course, it isn't done yet... won't be until after the first of Aug, and it might take a bit of time to happen after that. I do expect that there are going to be a couple of shorts out there who are a bit quicker than others... and there may be a first move up soon just based on short covering...
There is also the reality that there was a fair amount of market power applied in the effort to take it down... and if anything like that sort of effort is made to take it back up... it will go back up. There is a possibility of luck in timing, with a couple of those factors helping to move it back up... which might result in a pretty good pop at some point, if the short covering turns into something a little more frenzied.
At the point where everyone realizes serious dilution isn't going to happen, and most think it will be back up over $1 soon... it ought to move more quickly.
It's going to be something that moves this, I think. It's not just suddenly going to move. I think the drop in oil prices, if they continue, may be that stimulus. Or a PR of some kind, but what would have to be said I don't know.
Shareholders are pretty well focused on share prices. Most, right now, will be thrilled if the company doesn't implode and returns to even half its former value pretty soon. Most could care less that note holders are making out like bandits with the HUGE bump in the coupon.
I agree with others here that they ARE making out like bandits, and that the company could have been much less generous and still done the deal. And that means they are making out like bandits while avoiding proper shareholder outcry about that, just by doing the dirty deeds under the cover of threatened vastly more dire dirty deeds, threatened to create perceived risks of predicaments that were never going to happen... without equally dire results for those acting as for shareholders.
The good news, for me, is that I bought shares today just minutes before the close... so my upside is looking pretty good... and my downside is more limited than it could have been...
That's what I think. Most of these delisting notified stocks moke at least one go at it sometime. It's usually just to wait and hold.
Their numbers check out. The conversion price calculation is based on taking 97.5% of the average closing price of $0.382, then rounding down to the even share and paying the difference in cash.
Now, with the conversion price determined, note holders KNOW that if they tender ALL their notes the company will probably declare BK... and they will be left with the option of waiting for the company, AFTER declaring the BK, to increase the authorized to issue the extra shares in a now BK company... and they'll get the shares issued while the company is in BK, paying $0.37245 for each share in accordance with their properly submitted tender offer... and then they can try to sell them for whatever a share in a BK XJT would get in the open market.
There seems to be a misconception on the boards that if the company declares itself insolvent due to insufficient shares to make the payment on demand, that the terms that apply in the tender offer somehow won't apply in BK... and the note holders who tendered will be treated as debt holders rather than common share holders. NOT.
The trap for note holders in this arrangement is that once you've tendered, you've tendered... tough luck... and the BK isn't declared until after you are committed, which is necessary to generate the demand for payment which cannot be met. Then you proceed to getting what ever comes next without having any of the protections that would be afforded to you as a note holder in BK. That, and if you didn't tender your notes before the cut off date, your conversion shares will be considered subject to the anti-takeover provisions... which means the dilution you intended to gain by conversion at low prices just won't happen... as the terms of the offering specify the notes gain the benefit of any rights issued DURING the period in which the price is calculated... NOT AFTER. Once it is determined that the conversion constitutes a takeover attempt, the shareholder rights kick in... and those rights are issued only to common shareholders or record and those who tendered BEFORE the cut off date.
Looks to me like the company wins this all the way around... There aren't many note holders who are going to subject themselves to that kind of crap shoot on the off chance the company survives BK, while their holdings are considered as common shares without the same rights as others... so instead of note holders diluting others... they'll get vastly diluted themselves as holders of devalued common in BK.
There are backups that exist... in case note holders find a way to wiggle out of that series of traps. As is its discretion, the company, in BK or not, can simply determine that in fact the general conditions for the offer were not met... and they can terminate it. If they terminate the offer for reasons contained within the general conditions... then the note holders won't have made a claim... so there isn't a cause for BK... note holders are still debt holders... and the company comes up with another plan. They may simply decide "we tried" suffices, given the general conditions for an offer were not met, and punt until the next mandatory offering under the indenture, when, hopefully, the general conditions WILL be met.
Of course, I could be missing some minor nuance that matters... IANAL, IANAIA, etc., and, IF the note holders decide to tender some but not all, the results might vary.
It still seems to me they will need to be VERY careful not only to avoid demanding more shares than are now authorized to avoid the ugliness of BK... but ALSO still need to avoid a level of conversion that will make the anti-takeover provisions kick in.
That is the significance of the announcement of a date certain to avoid the anti-takeover provisions. "Some" notes will have been tendered before that date... which will avoid the provisions... and only the company and the note holders know how many were tendered by that date and WHO tendered them.
... so, the entire scheme to get more for less using conversion of debt to shares... taking shareholders value by dilution... with conversion at below market share prices that would give note holders more shares for less $$$ in note face value... seems roundly defeated.
Thanks downsideup. I really enjoy reading your indepth anaylsis here. So far you have been pretty close.
Now I would like to pick your brain on tonight's pr. lol!
Posted by: side_job Date: Tuesday, July 29, 2008 7:05:11 PM
In reply to: None Post # of 8082
HOUSTON, July 29, 2008 /PRNewswire-FirstCall via COMTEX/ -- ExpressJet Holdings
(NYSE: XJT) today announced the number of shares of its common stock that will
be issued in exchange for each of its 4.25% Convertible Notes due 2023 that is
validly tendered under the company's previously announced Offer to Exchange,
dated July 2, 2008. The company is conducting the exchange offer as required by
the indenture governing the notes. Pursuant to the indenture, the company has
determined that holders who validly tender and do not withdraw their notes prior
to the expiration date of the tender offer will receive 2,684 shares for each
$1,000 in principal amount tendered. This calculation is based upon 97.5% of the
average closing sale price of the common stock for the five consecutive trading
days ending on July 29, 2008, which closing prices were $0.43, $0.36, $0.38,
$0.37 and $0.37, respectively, as reported by the New York Stock Exchange Group.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080221/NYFNSN01LOGO)
The company has previously announced its intention to unilaterally amend the
indenture governing the notes in order to provide improved terms and additional
flexibility for the notehol! ders. Th ese benefits will apply to any noteholder
holding the notes on August 2, 2008 following the consummation of the company's
exchange offer. Those noteholders will automatically receive the benefits of the
unilateral amendment, including:
-- Security based on a pro-rata amount of collateral appraised at
approximately $181 million, including approximately $96 million in
spare parts and $85 million of spare engines;
-- Coupon increased from 4.25% to 11.25% over the remaining note term; and
-- An additional put right in three years or on August 1, 2011.
The trustee under the indenture is supportive of the company's decision to
provide noteholders additional flexibility and improved terms beyond the August
1, 2008 put date. These amendments have been reviewed and substantially approved
in form and substance by the trustee. The company intends to issue a press
release and file the amended documents with the Securities and Exchange
Commission via a Form 8-K, along with the third-party appraisal of the
collateral, tomorrow, July 30, 2008.
ExpressJet Background
ExpressJet Holdings operates several divisions designed to leverage the
management experience, efficiencies and economies of scale present in its
subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services, LLC.
ExpressJet Airlines serves 166 destinations in North America and the Caribbean
with approximately 1,450 departures per day. Operations include capacity
purchase and pro-rate agreements for mainline carriers; providing clients
customized 50-seat charter options; and ExpressJet branded flying, providing
non-stop service to markets concentrated in the West, Midwest and Southeast
regions of the United States. ExpressJet Services is the North American partner
to thre e major European original equipment manufacturers and provides composite,
sheet metal, interior and thrust reverser repairs throughout five facilities in
the United States. For more information, visit http://www.expressjet.com.
Important Information Regarding Tender Offer
This report is not a recommendation, an offer to purchase or a solicitation of
an offer to sell any securities of the company. The company has commenced such
tender offer as required under the indenture and filed with the SEC a tender
offer statement on Schedule TO-I and related exhibits, including an offer to
exchange, letter of transmittal and related documents. The company has also
mailed such materials to the noteholders. Noteholders are urged to carefully
read these documents, as they contain important information, including the
various terms of, and conditions to, the tender offer. Noteholders can obtain a
copy of the tender offer statement on Schedule TO-I, offer to exchange, letter
of transmittal and related documents free of charge from the SEC's EDGAR
database, which can be accessed through the SEC's Internet site
(http://www.sec.gov).
Forward Looking Statements
Some of the statements in this document are forward-looking statements that
involve a number of risks and uncertainties. Many factors could affect actual
results, and variances from current expectations regarding these factors could
cause actual results to differ materially from those expressed in the
forward-looking statements. Some of the known risks that could significantly
impact revenues, operating results and capacity include, but are not limited to
the company's continued dependence on Continental for the majority of its
revenue; the company's new operations are less profitable than historical
results; record-breaking fuel prices; competitive responses to the company's
branded entry into new markets; certain tax matters; reliance on technology and
third-party service! provide rs; flight disruptions as a result of operational
matters; regulatory developments and costs, including the costs and other
effects of enhanced security measures and other possible regulatory
requirements; competition and industry conditions. Additional information
concerning risk factors that could affect the company's actual results are
described in its filings with the Securities and Exchange Commission, including
its 2007 annual report on Form 10-K. The events described in the forward-looking
statements might not occur, or might occur to a materially different extent than
described herein. The company undertakes no duty to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
SOURCE ExpressJet Holdings
URL: http://www.expressjet.com
www.prnewswire.com
Copyright (C) 2008 PR Newswire. All rights reserved
-0-
KEYWORD: Texas
INDUSTRY KEYWORD: FIN
AIR
TRA
Source: Comtext Market News
There are a couple of things that the close today DOES make more or less clear.
The company has said that a conversion price under $0.40 would mean there weren't enough shares to allow conversion for shares, and there also isn't enough cash for conversion to cash, so, if all the note holders were to convert, the company might have to go BK... at which point, all bets are off over what the result ends up being... which might even include a risk of note holders not getting paid fully at all.
The conversion price is now fixed well under $0.40. That suggests that note holders will not convert, but will opt to hold their notes and take the bump in interest rates... If they don't the company still has an ace in their back pocket that will allow them to avoid BK, as they could terminate the tender offer as a result of not meeting the "general conditions".
If only one note holder opts to convert, the result will be that holder taking a controlling interest in the common, which the other note holders don't want to allow to happen. The only large chance of any share conversions, now, would be if there were collusion among the note holders to convert in proportion only that number of notes, only, that would ensure the conversion would come in under the authorized, which is now 400 million. The divergent interests of note holders between those that are share holders now and those who aren't suggests that won't happen, either... as those holding shares will lose more than they stand to gain in the process.
If the company is wrong in their analysis of the note holders interests, or is wrong about the number of notes that will be tendered, there could be still be some ugly surprises. Otherwise, there is no conversion, we stick with 52 million shares out, and the debt rolls over... but the authorized HAS been bumped up to 400 million now, with 52 million issued. That leaves a fair amount of shares the company might issue, after the market turns and the share price recovers, in order to put more cash in the bank, while salting away some of that additional cash to pay off the notes the next time around, which should put the issue to rest for good.
We should know by the 2nd of August how that will shake out, and it will be interesting to see what happens in the market before then... and after.
On August 2nd, if all the notes roll over, it should pop back up pretty nicely.
clairmontasap I'm still hanging on here. I would think they have more of an interest in seeing their stock go up than further down especially with the delisting notification.
I agree tommorow should start a completely different trading pattern. Well at least I hope it does :)
Enjoy your evening
I can think of a lot of things that will get it to move... but I'm holding out hope for those that get it to move... UP... LOL.
Looks like we will get a first read tomorrow on how it is going to trade when there isn't anything other than the price of a share depending on the price of a share.
There is still a possibility, even if the issues are resolved, that "normal" trading tomorrow and through next week, might include some serious efforts to drive prices down and shake the tree to get more lower priced shares into big boys portfolios before moving it back up. I'm of the school that expects it "ought" to trade higher tomorrow, just because there isn't much "extra-curricular" interest in holding it down now... and there is a lot of interest in seeing it go higher now.
Trading in the last month shows net distribution of almost 35 million shares. Distribution in the last 10 days has swung wildly from positive on Wednesday, to down almost a million shares at 3 pm today, but closed today with 500K fewer in the red. The ten day distribution probably gives you about the clearest picture possible of what has been happening here this week.
Chart a 5 min 10 day chart with accumulation/distribution, and compare closely the patterns in accumulation vs distribution for today, and for last Wednesday. Note that they form almost perfect inverse images of each other, so that if you took the Wed pattern and turned it upside down, it would plug into the pattern today?
That leaves me guessing that fair value right now, given the outstanding uncertainties, is somewhere in between those two... and that we are likely to see less of that sort of market action for a while... ??? Tomorrow could be interesting...
Can't win them all, right now I'm just wondering what's gonna get her to move.
Right now it is trading pretty close to my previously projected low of around $0.33... ooops, there it is at $0.33. At the beginning of the 5 day period, it didn't look like it was ever going to get this low, but there it is...
Were I as skillful a trader as I'd like to be, I'd have bought at $0.40 before the pop, sold it at $0.66 two days later, and be buying it back now... which would have nicely doubled my holdings from the first buy... ???
Interesting thought. We'll have to see if it plays out like you say.
Well, at least tomorrow will put an end to the market contest over control of closing share prices used in setting the conversion factors... and, in theory, at least, there ought to be a realignment of interests after tomorrow's close, with both the company, shareholders and noteholders all again having a well aligned interest in getting the share price back up over $1.10 in order to keep it listed on the NYSE.
Shorts have thus far had support either from the company and its advisors, or from noteholders. I think it is the company trying to keep the average closing price below $0.40 in order to prevent conversion of bonds into shares at a highly dilutive rate. I'm not sure what happens on the noteholders side if tomorrows close means no conversion for shares. The company alone, probably, knows how many notes have already been tendered for shares, and how many were submitted for the deal with the bump in the coupon.
I still expect the company to control the outcome... and if they don't, it seems it will only be because they don't want to. The rules and events have given them all the power they need to decide the outcome, I think... It ought to be interesting, still.
For sure, still moving up a little. Just give me a little everyday.
Yeah oil is weak right now.They just had the equivalent of an
Iran threat and oil has no reaction.Last week there was a hurricane,& oil dropped hard.Alot of money is coming out of oil at this time. Makes it sweeter for us,& we have earnings coming up soon.I'm holding for now.Sure is alot of resistance @ the ASK.At these levels it seems like there is also a little support @ the BID.
oil dropping again, looking good
~XJT~ getting hit hard at the ASK!!!YAH!!
Earnings Aug 6- two weeks
8 k out
Dont see anything particular in terms of anything we already didnt know(Definitive Noteholder Agreement finalized).
Although it is nice to see the unusual trading report on a 8 k rather than just a PR.Its kind of like they are putting the SEC on the spot which in effect puts shorters on the spot.I bet the short interest with `XJT~ is still high right now. An Airline stock...who hasnt been shorting them with oil prices the way they are.
The market is starting to turn around short term for Airlines.
Oil is coming off all time highs.Coming down pretty fast too I might add.If this trend continues even just for a little longer ~XJT~ should definitely see daylight just on short covering alone.
Traders right now are still hesitant to take a position in anything that goes against oil.Cant blame them. That will change once traders realize that oil is in a weakenede state now.Not in terms of supply & demand, but in terms of huge pockets cashing in after such a sweet run up.
Next week earnings! Thats what Im waiting for.Looking for a major squeeze here,thats my conservative view. My lotto view is that there could be a buyout at anytime.This could be the cheapest point in time that the airlines have to attempt consolidation.I just dont see bankruptcy in this company's future.Any thoughts on the 8K?Something Im missing?
GL
Expressjet Holdings Inc - Current report filing (8-K)
Date : 07/25/2008 @ 5:17PM
Source : Edgar (US Regulatory)
Stock : Expressjet Holdings Inc (XJT)
Quote : 0.38 0.02 (5.56%) @ 8:00PM
Expressjet Holdings Inc - Current report filing (8-K)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2008
EXPRESSJET HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware
( State or other jurisdiction
of incorporation)
1-31300
(Commission
File Number)
76-0517977
(IRS Employer
Identification No.)
700 North Sam Houston Parkway West, Suite 200
Houston, Texas
(Address of principal executive offices)
77067
(Zip Code)
832-353-1000
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
--------------------------------------------------------------------------------
Item
1.01
Entry into a Material Definitive Agreement.
On July 25, 2008, ExpressJet Holdings, Inc. (the "Company") amended its shareholder rights plan that was created under the Amended and Restated Rights Agreement, dated as of April 1, 2002, by and among the Company, Mellon Investor Services LLC (the "Rights Agent") and, for certain limited purposes, Continental Airlines, Inc. Under the Second Amendment to Amended and Restated Rights Agreement, dated as of July 25, 2008, by and between the Company and the Rights Agent (the "Amendment"), holders of the Company's 4.25% Convertible Notes (the "Notes") are exempted from the shareholder rights plan with respect to any shares of the Company's common stock received by tendering noteholders in the Company's Offer to Exchange dated July 2, 2008 in respect of its Notes, but only to the extent such noteholders beneficially owned such Notes as of 4:00 P.M. central time on July 24, 2008. As a result of the Amendment, no such noteholder would trigger the Company's shareholder rights plan solely by virtue of its participation in the exchange offer that the Company is conducting as required by the indenture governing the Notes.
The foregoing summary of the principal terms of the Amendment is a general description only and is subject to the detailed terms and conditions of the Amendment, a copy of which is attached as Exhibit 4.1 to this Current Report on Form 8-K and incorporated herein by reference.
On July 24, 2008, the Company issued a press release announcing that the Company’s Board of Directors had authorized the Amendment. The press release is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item
3.03
Material Modification to Rights of Security Holders.
See the description set out under “Item 1.01 Entry into a Material Definitive Agreement.”
Item
8.01
Other Events.
On July 24, 2008, the Company issued a press release announcing that it had requested that New York Stock Exchange Regulation, Inc. (NYSER) and Securities and Exchange Commission review unusual trading activity. The press release is filed herewith as Exhibit 99.2 and is incorporated by reference.
Item
9.01
Financial Statements and Exhibits.
4.1
Second Amendment to Amended and Restated Rights Agreement dated July 25, 2008.
99.1 Press Release dated July 24, 2008
99.2 Press Release dated July 24, 2008.
------------------------------------------------------------------------------
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
EXPRESSJET HOLDINGS, INC.
(Registrant)
Date: July 25, 2008
s/ Phung Ngo-Burns
Phung Ngo-Burns
Staff Vice President, Finance and Controller
and Interim Chief Financial Officer
--------------------------------------------------------------
EXHIBIT INDEX
4.1
Second Amendment to Amended and Restated Rights Agreement dated July 25, 2008------------------------------------------------------------------
hopefully it will pop, I still hold a few shares.
it's storming here with my dog driving me crazy, she hates storms.
I overslept and the brain isn't into it today. lol!
I'm still liking XJT down here. Looking forward to next week.
Time to go sit poolside :)
fridays are boring???
I've had a great day.lol
I say we have better movement on Monday. Friday's are a boring trading day.
Have a great weekend
It is looking much better..
Looking good Ogclip. Actually bought some at .39 this morning in my daughter's sharebuilder account.
Now it has to run or I am in trouble :)
MFI should go up today.A/D will tell the story.
lil hedgies playin with this right now. Farkers piss me off on NYSE issues under a buck.
I dont expect this gap to fill.& thats alot coming from someone who does believe in most gaps.I missed the third ~UVSE~ move because I wanted to buy post gap closure @.0016...never happend,went to .038 & I was pissed.
This looks like the potential for a genuine short squeeze.Shorters will burn today. GL
Looks like she is gapping though.. .39x.41
Yeah that was the front loaders again,only a few thousand though.Wonder if anyones going to have a chance to get in cheap after such news?If we gap I dont look for that particular gap to fill...some gaps were never meant to happen in the first place...
GLTY
I added more eod at .36. Whoa I was a little shakey buying, but seeing tonights news it does look more hopeful now. More buys then sells were coming in eod and that is why I decided to add more. Perhaps others were aware of the news before it was pr'ed.
Honestly I still don't understand who or why brought it back down this low.
Tommorow should be interesting.
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ExpressJet Holdings, Inc., through its subsidiaries, operates as a regional airline in the United States. It involves in flying aircraft under contractual arrangements for network carriers; and for entities desiring customizable group travel, such as corporations, including other air carriers, collegiate athletic departments, sports franchises, government entities, and hospitality companies. The company also provides aviation services, such as ground-handling and other support services, including baggage handling, station operations, ticketing, gate access and other passenger, aircraft, and traffic servicing functions for various airport locations, as well as offers aircraft repair, overhaul, interior refurbishments, and paint services. As of December 31, 2008, it operated a fleet of 244 aircraft; and 950 daily contract flying flights, offering passenger service to over 130 scheduled destinations in North America, Mexico, and the Caribbean. The company was founded in 1996 and is headquartered in Houston, Texas.
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