There has been a remarkable increase in short interest since January. Almost 4m shares have been sold short in 3 months, and there are only appx 31m shares in the float. Seems to me the somewhere down the road this thing is in for an explosive move one way or the other.
I think the Republic/Frontier story is developing well and streamlining of operations and synergies of combining the airlines and offering additional routes will pay off in the long run. However, we are certainly highly leveraged and if oil prices do not cooperate in 2011 and beyond, things could get tough.
DATE SHORT INTEREST STOCK PRICE
4/15/2010 6,599,741 $6.68
3/31/2010 4,934,702 $5.94
3/15/2010 4,213,493 $5.44
2/26/2010 3,037,871 $6.09
2/12/2010 2,831,335 $5.31
1/29/2010 3,163,628 $4.89
1/15/2010 1,874,234 $6.85
BUMP. Painful day today but I'm sticking with my short and looking to add to it if RJET continues to go up. If you read my posts, you will see that I have predicted accurately over the past year what will happen with RJET.
Can't believe one analyst could have this effect on the stock. Oil down in the past few weeks does help RJET though, but I still like my short.
its funny how people do not like to admit when they are wrong. Take your losses and run away. Long term short.....thats just an excuse, not a strategy. Even if RJET declines a little, 8.40 is a huge area of support and probably wont be broken easily. Your $5 and $6 and $8 short positions have a long way to go amigo.
I expect a slight earnings beat, but I don't necessarily expect the stock to go up. It depends on what forward guidance they give during the call. If they talk about October-Dec bookings and provide honest guidance, it will go down.
However, I won't be surprised if it goes up because I don't really expect them to be honest. We will see.
Further, I am a long term short so I'm not trying to time this stock or day trade it.
I did buy 20 Feb 19 12.50 puts today. I have run out of capital to continue shorting.
Not much of a market for puts. Orders never get filled unless you pay the ask price.
Will buy more if the stock bumps on a slight earnings beat (which I expect).