Replies to post #351 on ExpressJet (XJT)

[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 ?