MESA chart looks great-technically could easily run to .28 IMO. All indicators up/crossing or turning up!
27.9 ml float 39% owned by institutions,
2.96 ml short for 10.2%
Insider acq and Purchase through Oct 08- no data found after that.
However- fundamentals aren't great. Looks like they are getting debt restructured though. Look at last para below for potential 1-100 reverse split????
AZCENTRAL.COM---Mesa Air Group said it has reached a tentative agreement on the restructuring of a "significant portion" of its bonds that have key payment deadlines looming.
The regional airline's ability to repay or restructure the debt has been a big question mark because of its precarious financial condition.
The Phoenix-based company, which flies commuter routes for US Airways, United and Delta, has had large legal bills and cash settlements related to its Hawaii operation and also is faced with the potential loss of business from Delta.
In its latest fiscal year, Mesa's cash balance fell from more than $200 million to $65 million.
The company has acknowledged its problems and said bankruptcy is an option if it doesn't work through the challenges.
The restructuring announcement was made Thursday afternoon. On Friday, Mesa's shares surged 23.3 percent, to 18.5 cents.
Under the restructuring, Mesa said certain holders of two groups of its senior convertible notes have agreed to waive the Jan. 31 put right related to $15.6 million in aggregate principal and to exchange $89.8 million in principal amount for $5.6 million in cash, 13.6 million in Mesa shares and $14.3 million of new debt.
The stock and new debt portion of the deal is expected to close on Feb. 10. Mesa said the closing of the transactions is subject to certain conditions, including the negotiation of a definitive agreement.
The company said it is continuing to negotiate with certain remaining bondholders.
"We appreciate the willingness of our bondholders to work with us through this difficult situation and remain optimistic that the company will be successful in the long term," Chief Executive Officer Jonathan Ornstein said in a statement.
The Street.com----The Phoenix-based regional carrier was recently threatened with delisting by Nasdaq. It has sued Delta(DAL Quote - Cramer on DAL - Stock Picks), one of its principal partners, which had sought to terminate a contract.
Attempted new business ventures in other parts of the world have had some unintended consequences. In Hawaii, where it set up a new interisland airline in 2006, Mesa lost one lawsuit, paying out $52.5 million to Hawaiian(HA Quote - Cramer on HA - Stock Picks), and settled a second, paying $2 million to the estate of defunct Aloha. Mesa was accused of using confidential information obtained from Hawaiian, and of predatory pricing.
Meanwhile, in China, Mesa sold a once-vaunted partnership with Shenzen Airlines, taking a $7.4 million loss.
Currently, with $92 million worth of bonds coming due, Mesa is trying to convince bondholders to take stock in payment. It's not an easy sell, given that shares traded Tuesday at 20 cents, but bondholders may decide that getting something beats getting less in bankruptcy court.
Last week, Mesa reported earnings for its fiscal fourth quarter, which ended Sept. 30. The net loss was $22.3 million, compared with a loss of $62.2 million a year earlier. Excluding special items, pro forma net income was $3.1 million, the company said, up from $2.2 million. Revenue was $325 million, down 1%.
Jesup and Lamont analyst Helane Becker says Mesa can conceivably turn things around, but first must solve its many problems. "The airline industry in general is going to be profitable this year, but whether Mesa can be profitable is still up in the air," she says.
"They have a lot of issues they are dealing with," she says. "They are looking at having bonds put to them, they have to settle with Delta before they can grow in any large measure, and the balance sheet needs to be restructured. It's still a cloudy and highly risky picture."
------Meanwhile, in a recent report CreditSights said Mesa inflated its share --------count to settle convertible bond issues, and now, "with share count ----------growing from 30 million to 900 million, it will need a 1 for 100 reverse --------split after everything settles." But after going "through semi-hell and ---------almost back," Mesa is "almost bottoming," the firm says.-------------
