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This is actually a great question. I asked myself the same one. With some DD I found this out...
It appears that the business model Baltia set forth for themselves in the beggining called for ownership of a plane outright. Once the plane is owned outright this equals zero debt load which is great for a company with zero revenues. With the uncertainty of on how long the certification was going to take, not having an exorbient lease payment each month coupled with all the operating expenses they have had up to this point, you begin to see why purchasing this 747 was actualy an acceptable move.
The 747 200 was also chosen for it's cargo capacity, which is in line with Baltia's goal of generating high margin of profits per flight.
Add in the fact that the millions of dollars spent from inception till when they begin income generating activities are considered tax deductible.
This all together puts Baltia in a unique position when it comes to growth potential since most of the profit generated should be used to grow the business.
Leasing planes in the future are definitely an option.
I know I'm way late to the party responding to this post, but O/S share structure has changed substancially in last few years (2billion+ shares added) which maintains stock price at current levels even taking into account the plane as an asset.
We all knew what you were doing right from your first post with a :( in it. Im sure your average is around .0175. Welcome aboard.
One thing I'd like to know is what do you think the reaction would be if Baltia did this without certification:
http://easternairlines.aero/news/eastern-air-lines-orders-twenty-boeing-737-800-aircraft-1400516085.html
OMG! This board would crack at the seems if we got word of Baltia's "poor management" placing deposits down on 20 boeing 737's without certification.
But since Eastern Airlines, with it's trademarks and logos being the only thing they own, aside from the plane... this move is okay because it's them.
I don't know, but Baltia having a huge tax break and no future liability with agreements to purchase 20 several million dollar planes without any revenues seems to be a bit more appealing to me. Seems like "good management" in my list of definitions. But that's just a paradigm. I guess we all have the rite to look at things from our own perspective.
If that is the case, then yes, Eastern is in great shape to obtain certification.
Another apple to apple observation is that none of what you claim is PR'ed on thier website or anywhere else. So the claims about Baltia not PR'ing every little detail can be laid to rest, because neither is Eastern Airlines.
I'm excited to see Eastern get back in the sky. I visited an airplane museum out in N Carolina with one of thier original planes and was saddened to find out that airline had gone out of business. It has a rich history.
At the end of the day...it takes nothing away from what Baltia is doing. Baltia needs to get mini evac straightened out and commence proving flights. When doesn't matter as long as it does!
Comparing Apples to Apples:
I found a reuters article dated Jan 31, 2014 on Eastern Airlines;
http://www.reuters.com/article/2014/02/01/usa-florida-airlines-eastern-idUSL2N0L602K20140201
Here is a snipet of what the stated plans were of the investors:
Eastern plans a common stock offering in the next few months to raise up to $14 million to cover startup costs, it said in filings with the Department of Transportation.
It will take delivery of a leased Airbus A320 in late August in order to finish certification and hopes to add two more to the fleet within a year.
So two things I see here that Eastern shares in common with Baltia...
1) they saw that offering common stocks to raise capital is an option.
2) creating a new airline requires many adjustments to plans as you go along. They planed on purchasing Airbus A320 but ended up with a used 737-800
Now I haven't been able to find a stock symbol for EA, so if there is one, and any of you know it, I'd love to have it. It doesn't seem as if they went the common stock offering route as far as I can tell.
Baltia's journey hasn't been the smoothest text book start up for an airline...but it seems like no airline ever had a smooth text book start up since that text book doesnt even exsist.
Looks like they beat us? The article linked by Darthpilot can be compared to where Baltia was when the iCNN reports began to surface over a year ago.
Eastern Airlines in certification process = True
Eastern Airlines certified by next month = False
Are we comparing apples to oranges here? = True
No stock symbol available for EA since it's funds seem to be stemming from private sources.
This snipet from the article you linked leads me to believe that Eastern Airlines is no where near as close as Baltia is to certification...
In addition to the Boeing 737-800 that arrived in December — a plane previously owned by Kenya Airways that is now undergoing modifications to meet FAA standards —
The article is dated 1/11/2015. So this leads me to believe that this modification is still underway if it has even began already. So your assumption of "less then a month away", as a comparison to where Baltia is in the certification process, isn't feasible.
But thanks on the lead on a new airline. If there's a way to get a return on an investment with Eastern, I'll definitely look into it. I wish them all the best. Sounds like a great story.
Go BLTA all day!
Anyone know the specifics of the legislation and if they will effect Baltia in any way? If Baltia can fly back and forth to St. Petersburg and can open new direct routes to different parts of Europe then these proposed sanctions are a mute point.
Two Interesting articles I found for alternatives for the 747...
A380 Airbus - probably not feasable because it may be discontinued but does offer cargo space. With the discontinuation of this line, maybe Baltia can pick one up for a cheaper price.
The 787 - Not sure how the cargo space is on this model (I'm sure its comparable to the 747) but the perks for long distance travel will make Baltia a popular pick for non stop flights into Europe.
The 777 doesn't seem like a viable option since it's smaller then the 747 and will probably have less cargo space. Now if they get several 777 and fly alot more flights per week, then it does become a viable option since its a midpoint for comfort and cargo space.
http://crankyflier.com/2014/05/19/the-747-is-quickly-disappearing-from-passenger-service/
http://www.forbes.com/sites/marcbabej/2014/12/11/airbus-a380-vs-boeing-787-revisited/
I'm hoping that the Purchase of this plane was to begin and complete the certification process. Over time, there should be an adjustment to the business plan to purchase and/or lease more fuel efficient airplanes which will net more profits. I hardly expect this 747 to be in service for more then three years top and in my opinion should only be used to commence revunue producing flights to expand the fleet. I'm sure when the topic to purchase additional planes and/or replace exsisting planes, the gentleman in charge of making these decisions will make sound judgements on proper models. We have to take into account that cargo will be a main source of revenue for Baltia and any planes obtained by them will have to accomodate this fact.
Mini Evac is, from what I understand, a task that most airlines do not meet the first time around. So Baltia not passing it's first attempt is not a game changer. I also seem to never recall any official PR stating that Baltia promised that anything was going to be done on any particular date. So if it's not in black and white on paper, then I dont believe it. Barry saying what he said on camera at willow run airport doesnt count as a company declaration nor a PR or promise that something was going to definitely happen, it was a projection and / or a forward looking statement.
The speculation of failure is great news to me, I didn't think I had another opportunity to load more shares under .02. Eventually they will pass and back up we go!
Question for the pilots on this board... Or anyone who knows the answer...
For the planned test flights, do they show up on flightaware.com or are these test flights something that would not register on a website of this sort?
iCNN not the official CNN. But hopefully it will soon be on the official CNN page.
These small purchases at the end of the day could be a numerous amount of things. If it were someone just doing it to drive the price down a bit, it's just a psycological play so a stock holder can sit there all night thinking to themselves...OMG my penny stock is dropping! The world as we all know it will soon end.
So if your the one who sits there and falls for it, you will go and place your shares on the table so that the same person who psycologically tormented you, purchases a stock that has very little volume at a lower price.
Don't get me wrong....it's great that you point these sales out because it makes us aware of it but don't loose sleep over it. Even at .008 with PP shares selling at .004, at the time, didn't make me loose sleep. I just bought more =)
One thing we all should prepare ourselves for is that those same exact .004 PP shares I spoke of are soon to come off restriction and you will see a high volume due to profit taking. So just prepare yourself mentaly for a rollercoaster ride when it comes to this stocks price.
At the end of the day, you can't sit and look at the price movement of this stock each and every single day. Take a break from looking at it for a period of time, you'll thank me for it.
When you only have 1 747... you best believe you better care about the Heavy C Check. I was extremely happy to hear a confirmation of the plane passing that highly intensive and expensive check. I originally planned to sell my shares before the first flight took off, now I might wait for at least 1 round trip =)
I don't have any idea what's getting my posts deleted but once again, all I want to point out is the fact that Baltia had issues certifying in NY hence the move to willow run airport, michigan. This is the only instance in where you would see a repeat of any sort in Baltia's certification. Never in the 20+ years of Baltias history have we seen the level of accomplishments being made in the last year.
I believe Flaflyerfan knows very well who is accredited to be able to invest in PP shares. He has made the accusation that not all PP shareholders in Baltia meet these mandatory requirements.
I believe flydady is under the impression that PP shareholders are insiders when he made that statement in that post.
I believe flaflyersfan, in mentioning that the shares were "sold to millionaires" was in reference to the fact that BLTA actually didn't sell to qualified investors who meet the terms and eligibility requirements to purchase PP shares. You might not be a millionaire but you (and correct me if I'm wrong) should have an annual (household, I believe) income above $250,000 if you were allowed to purchase these PP share packages. He has stated before that unqualified individuals have been allowed to purchase PP shares so that statement can be assumed to be sarcastic.
Thanks for this info plus your article on the Russian population in and around the Brooklyn, NY area. I wanted to share that info also since I live in NY and there is a huge concentration of Russian natives who are going to really appreciate the service Baltia is going to offer.
Baltia is a no brainer with just these two facts and it's not a question of will growth occur (in acquiring more planes and routes) but a question of how fast will they meet the demand once they become certified and a viable option. I think Baltias first headache, when they begin operations, will be how they wont meet current demand and wheres that second plane.
Any wise international importer and exporter should set up a shop in St Petersburg Russia now that this new link to the US will be formed. Go Baltia!
PS this should probably be Baltias next 747...lol
http://en.wikipedia.org/wiki/Boeing_Dreamlifter
I know these facts very well. Vick's transactions have nothing to do with what I'm discussing in my posts. He falls within the realm of Insiders, not a PP holder. I might sound negative with me pointing out this reality but I'm a major supporter for this stock and know this airline will be a success and very profitable... I drank the kool aide a long time ago. But there is no logic in any stock where DILLUTION can be justified. There is just no going around that.
LT classifying it "A necessary Evil" is as close to justification as we can get
I want to point something out to make it clear. A reverse split is not always a bad thing and not my fundamental worry. I just recently went through a 4/1 RS on INO and it has panned out very well. The intention for the RS for that stock was to move it off the OTC markets and get it on NASDAQ where all the institutional investors that had already bought into it, wanted it. So get it out of your head that an RS is a bad thing. An RS for BLTA will pan out to be a great thing when it happens because it will make it viable to probably go from OTC to the NYSE opening the doors to were most investors feel comfortable now investing thus driving up the price of a less dilluted stock if the financials support it. (which based off what the possibilities for BLTA are, should be very well)
My issue is with dilution. When you add 1 Billion shares to a stock and the price stays the same you can almost compare it to inflation of a currency. My request for a plan on how BLTA is planning to handle this is the equivalent to asking Ronald Regan explain to all off us in the 80's how he was going to fix inflation.
You have to all understand that it's all fine and dandy that the management portion of the shares can't be sold, but Private Placement shares can be, once off restriction. And I highly doubt the new shares are for management, it's to be sold for fund raising purposes. (Or at least I hope that's what they are for to get the doors open) Alot of PP shares are coming off restriction and will continuosly do so. There is no real need for PP holders to be long on BLTA. They double thier money and can purchase even more PP, close to double the amount they originally held, and do it again in 6 months....it's a beautiful play on this stock. All while non PP shares get dilluted. At some point, someone respectable with a strong following will analyze this company down to the very last pubic hair and based off thier assesment will drive the price either up or down. At this level of dillution, there's only one direction the price can go if it gained any traction. So yeah, dillution is a major thing to consider when investing in this stock.
So if your plan is to sell this stock on the OTC at a profit, your ticking time bomb is an article that breaks the fundamentals down. So start making noise about these guys creating shares out of thin air until they stop or explain how they plan to handle it. GLTA.
In theory, your shares are lowered by the amount of the ratio set, and the price of the shares will be higher but the total value of your position is the exact same... Until the market reopens and it reacts to the R/S.
This is exactly my point. We see 5.5 Billion now but they will need to create more shares before profits roll in. So where and when do the brakes get applied?
Thank you
First of all, it's not moaning.... it's a statement of a FACT, that I as a share holder, have the right to be concerned about. I agree with you that it's a necessary evil, like LT stated. What I don't agree with anyone is the fact that they can simply add, 1 BILLION, not 100 million, not 200 or even 500 million...but 1 BILLION shares with the flick of a pen. (Guys, don't waste your time explaining the cost and time and effort that goes into authorizing shares for a corporation, it's not the point here)
All I request as a shareholder is an actual detailed plan on how Baltia plans to handle this O/S structure.
Yes...Yay for the tax break, yay for no debt. Baltia is still not exempt from how shares need to be managed. Thinking long term here... At some point BLTA needs to be lifted off the OTC markets. If there is no plan for an R/S, how much is Baltia willing to pay to buyback billions of shares so this company can become marketable for the stock exchange? Doesn't seem realistic to me. The only thing feasible at this point is an R/S, minimum of 4/1. I personally think it should be 8/1.
I get your point and agree with the sellers sticking to thier asks...but... and this is a big but...
.019 x 5 bil = a valuation of 95 Million
.019 x 3.8 bil (around where I got in) = a 72.2 Million valuation
With no revenues. It was already a tough sale. Sorry to point this out but the truth is the truth. And I know you all want me to shut up, including myself, but the dilution of this stock needs to be contained already or a Press release from Baltia Management explaining in detail a specific plan with estimated dates on how they are going to manage all these outstanding shares.
Two things holding this stock at the current levels, IMHO... PP SHares coming off restriction and Dilution.
I'm sure alot of the investors sole intentions for purchasing PP shares was to at least double thier investment. Mission accomplished. I'm pretty sure no longs are selling off right now. To wait this long for phase III and sell just doesn't seem bright. Purchasing at 50% discount then selling at 100% once off restriction....very bright for a short term play.
Dilution! Why?????? I hate this about this stock! It should be illegal to produce 1 billion shares from one day to another without shareholder input or vote. And then do it again! So to Ink50 who purchased at 0.21 at the time, it was probably ok to do so, but I sit here and wonder how many A/S were available at that time. Since I bought in last year, they've added over 2 billion shares!
So anyone know what the actual Float is at this moment? As of today. PP Shares coming of restriction will maintain this stock price in this range. There is no fixing this until Baltia decides to buy shares back since they swear up and down they are not going to do a reverse split "for some time". "For some time" = At some point they know it's necessary if they want to move off the OTC markets.
I guess that answered my question, lol
Honest intentions here with this question... What are your views on BLTA now that phase III has been entered. Do you still see a share selling scam here or are you beginning to see an actual operating airline? Your opinion on the matter would be greatly appreciated because any indication that you have begun to adjust your perception, would be considered a positive outlook.
I want to set the ask for all my shares at $3.50....discuss...
Who's going to the shareholders meeting and who plans to post here ASAP after attending? I want to make sure I follow you so I can be informed. I'm frustrated that I live 45 min away from the meeting but I won't be able to attend due to my work schedule.
So if BLTA now has a fuel service support now, does this mean LT's money is going to be used to get these test flights going? Things are looking good. But yeah I know.... the average company that is only into selling stocks for profit usually require fuel service, yada yada, yada....
Baltia Air Lines Chooses World Fuel Services
Sep 18, 2014 (Close-Up Media via COMTEX) -- Baltia Air Lines reported that it has reached a Fuel Services Support Agreement with World Fuel Services.
According to a release from the airline, Russell Thal, Baltia's Executive Vice President said, "World Fuel will plan, coordinate, source and purchase jet fuel to satisfy all of Baltia's needs."
Baltia Air Lines is an airline, currently undergoing Air Carrier Certification.
More information and complete details:
www.baltia.com
((Comments on this story may be sent to newsdesk@closeupmedia.com))
Copyright Close-Up Media, Inc. 2014. All Rights reserved
I actually laughed to this. Good one!
Bro, it's well documented that Baltia's airplane went through a Heavy C check. It wasn't paint and corrosion fixes. If your going to argue or point something out, at least use something viable.
Having Baltia featured on a news program with Barry stating they are aiming to be officially certified by Oct 1st was a surprise to me. Actually a miracle since i've been following since 2003. But everyone has there own perceptions. I think this past weekend was great for Baltia because my expectations were based on reality and not fantasy. One more step in the rite direction. Shareholders should be proud!
Shares get sold for many reasons. Someone probably had to pay rent or something and sold at the bid. People are trying to get in as low as possible and if someone has a need, they are going to sell. Some people will sell shares of BLTA so they can use the cash on an upward trend stock today then probably come back. The volume is a little over 1mil at time of this post so no need to worry guys. If it bothers you so much, (not directed to you directly investorpaul) just log off your investment accounts and come back on tuesday to see where it's at. There's no need to NERD rage just because you see a little red.
Consult with tax expert first, my disclosure.
If you were to sell all your shares at the same time and you have mixed dates, then yes, each individual share is taxed based on purchase date. I believe, and correct me if im wrong, your oldest shares are considered sold first. So if you still retain shares after a sale and you sold an amount that was more then the shares held for a year, you will get hit with capital gains on the portion of shares not held for a year.
Ex: 100k shares purchased >1yr + 100k puchased <1yr. you sell 150k shares, 100k are at normal tax rate, 50k at capital gains rate.