irishNJ

So you'd prefer the company to be delisted then?

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11thHour

In the end, it doesn't matter. The outcome will be the same - bankruptcy. You can take that to the bank.

Texas-Star

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Stock Splits - Getting More For Your Money
From time to time, companies will want to change the amount of shares available in their company or the price of their stock. The typical way of doing this involves stock splits and it is very successful in accomplishing the desired objectives. The stock market news has grown very accustomed to this phenomenon and while there is usually some initial excitement over a stock split, the end result is generally very smooth. We will discuss several of the reasons for stock splits and what effect they have on the stock market.

Reverse Splits
Reverse stock splits are less common and have a somewhat negative investment strategy attached to them. If the price of a stock drops too low, many mutual funds will not purchase them and they even run the risk of being delisted, or removed from the market indexes. In addition, the low stock prices create a psychological stigma as people view them as worthless. By doing a reverse stock split, companies can raise the stock price by lowering the number of outstanding shares, eliminating the problems caused by the low stock prices.

Stock Splits

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DTM212

Remember that if we declare bankruptcy, the new CAL CPA that just bailed us out can be revoked.

Seems to me this may help stave off the B-word. At least we can see it in the papers...

tptp

Reverse stock split: (I own XJT, but bought in at a higher price )

Let's say I'm in 1,000 shares at $2. $2,000
Price now is $.20 $200
1:10 = 100 shares @ $2/share $200

Now I have to hope the market will get the stock price back up to $20/share just to get my money out.

100 shares * $20 $2,000

What do you think is more likely? $0.20/share going up to $2.00

or

$2.00 going up to $20.00?


I'd rather just take my chances with delisting. The stock will still trade OTC.

Nova

So even after we sign a 7 year CPA with CAL, shutdown branded, slash our employee numbers and oil drops 25% the stock still tanks. I've heard folks throw around the notion that the stock tanked due to a lack of confidence in the company. How will artificially inflating the stock price do anything to change that? What do the investors want to see from this company/management to get them to buy into this outfit? As tptp spelled out this stock split is going to hose every investor which (again) will kill investor confidence in the company.

Perhaps the only way out of this is a change in Management. I'm not saying that our current leaders have done wrong since CAL ditched the 69 (that's for a different discussion) but are the investors looking for a change there? About the only thing left for Management to do is strike a pay concession deal with their employees, which may or may not happen. I have a hard time believing that after everything else that has happened in the previous 6 months that the stock value is absolutely hinged on getting 6% from the employees. I don't believe it. Perhaps it'll take XJT getting their version of Bethune at the helm to truly improve the companies value. Up to this point nothing else seems to have affected it, at least positively.

IAH2LAS

Yes, I'd prefer the company to be delisted. We've shutdown Branded and Delta. We signed a 7 yr deal with CAL that is truly non-profitable. Like mentioned previously, I don't think the stock is hinging on the pilot 6% paycut. Look, nothing is really going to bring the stock back up unless something drastic happens...ie management change, huge company restructure, or a buyout.

This stock will never be back at the IPO price in this economy. So, take the chance with delisting. Management has just as much at stake as we do then to get the stock back up. Tough times are ahead but maybe....just maybe....the union over at Boeing is on to something.

Corso

I think it's been said before, but doing the reverse split gets the stock price up over a certain threshold which then allows institutional investors to invest.

The fact that we're a penny stock may preclude an investor from buying our stock due to their buying rules. Once the stock price is up, it will be available to more buyers. No doubt though that those who bought above $1 will have a tough time getting their money back.

Rob Corso

tptp

You'd also think that on the verge of being delisted some major insiders would work a little harder to get the share price back up if the common shareholders rejected the 1:10 split.

Major insider holders:
KELLY T PATRICK 290,350 29-Aug-08
CROMER FREDERICK S 95,214 23-May-08
REAM JAMES B 87,500 23-May-07

It's going to get tough for Ream to unload 87,500 shares if we get delisted.

Ask the people we just gave 150M shares what they intend to do with them when we get delisted. [Thanks for calling that bond!]

Good point Corso about institutional investors and $1/floor... but haven't the last 6 months shown that every time an institutional investor buys our stock they screw over the company? Those short sells really killed our stock...

Another point, SKYW offered $3.50/share. If we 1:10 reverse split, that offer would need to be $35/share for parity. We're never going to see that.....

I'm voting no...

There's got to be some other maneuvering or lever pulling to get the price back up without reverse splitting.

philw

more importantly.... is there any way to make money on the stock split and then it going down. if the facts are inevitable, then how can the pilot group make money as well