in the absence of a business plan or creative leadership, it is nice to ponder how a 15,000 shares will impact company valuation. this is why the stock price hasn't moved in a decade. what if they change to LED lights in mens' room? that will save some money too.
i will not suggest this stock as investment that can be held for long term, until there is a dramatic change in the business where growth is a priority and shareholders are considered important. up til now, this has largely been a company run by the executives for the executives.
There is only a small window for Swenson to buy and he took advantage of it. I do not think this stops the company from buying back stock. The spread is large evidencing that there are no serious sellers at this level.
I presume that Swenson and the Company are in a black-out period now (until earnings are announced for Q1 and during other insider knowledge about current developments). During such periods, I have observed that there tends to be lower trading volume and a slight market weakness--a good time to add to holdings.
All good from my perspective. Parry was a good employee but he is replaceable. His options are being bought out and will reduce the float and will ultimately result in higher earnings. Simpson is still needed and the company has worked out a mutually beneficial arrangement. The puzzle is starting to take shape.
Trading has been thin with big spreads between the bid/ask. I am still holding and will add on dips below $11.75. i have confidence in Nick. .
The option previously held by Parry did not expire until Dec 15, 2016 (or earlier under certain conditions such as termination, etc.). So, I believe if you used Black-Scholes to value this option, then the Company got a good deal (if the Company repurchased the option, which I would bet that it did).
John Parry sold his option (presumably back to the Company) on 15,000 shares (with a strike price of $9.30) for $3.90 per share. This leaves him with ownership of 1,502 shares. Who will take over as CFO is still not announced.
Simpson goes to two days per week and then 1.5 days per week over the next two years. It would appear that these changes will reduce SG&A costs and streamline the management team, while letting Simpson transition into full retirement.
tesi... What do you think about these developments?
i doubt this is a coincidence. if new management is going to be more aggressive, then you need a different guy to run that expansion. however, i still see no business plan. what am i missing?
The news probably spooked a few people today. too bad, given the momentum that was building. The test will be whether Swenson still is a near term buyer.
tesi... From the language in the 8-K, it suggests to me that he resigned on his own and did not negotiate any separation agreement (or a departure date, beyond the standard 30 days), or this information would have been specifically mentioned in the SEC filing. Perhaps, more shares and in-the-money options may be acquired by AIRT from Parry.
This year should/ will be much better than the last ones:
- Air cargo will remain at least stable, possibly there will be growth, thanks to a better economy.
- Ground services continue to grow and contribute a nice profit.
- Global signed new (higher margin) contracts.
- Last year there were exceptional legal & contract termination costs.
- The number of outstanding shares has been reduced (buyback from Clark).
Additionally, there is not a separate scale (at FedEx in the pilots contract) for pilots on single and twin-engine turboprops. Getting one would be very expensive and not worth the diversion of management attention at FedEx. To attempt it would be courting a big disaster. FedEx would end up with much higher costs. It's not just wages, but also benefits and work rules.
The major air carriers have fought this problem for years, and this is the principal reason why there exists a group of regional carriers (look at what happened at Comair, American Eagle, some of the various regionals that historically supported USAir, etc.); they must be separate corporately from the major carriers to exist with labor law as it is now comprised in the USA.
Obama has packed the NLRB; the Supreme Court will soon speak on non-recess appointments that Obama claims were recess appointments. The US Constitution must be preserved.
He has implemented changes at Global and we should see improved margins. Revenues may drop but profit should go up since they are no longer going to bid on marginal contracts.
agreed, but i still see no business plan. so it looks like a zero growth, high p/e stock. the worst of both worlds.
A union shop? I don't think so..... The pilots are the only unionized group at the company... It's. Not like UPS.