Clearly, you have no idea what you're talking about… Because the only way this jerk off could have placed a trade so large with so little equity would be to use daytrading buying power which is four times versus two times margin. That said, when you hold any position you've used daytrading buying power for overnight you automatically get liquidated the next day especially if you're a repeat offender like this jerk
Yesterday's volume was not daytraders, I do have to believe a private equity firm bought most of the stock and will likely do a take under at lower prices, then spinoff the remaining ops to another carrier.
Prob $3-4 stock at best. Maybe $5-6 if the faa backs off.
Really? Do you care to share with us which regional can absorb $2.7 billion of leases and debt?
Yes, some time ago, the capital structure was changed such that the existing preferred holders at the time (retail like you) would become the common holders, and, the preferred shares would become those of the Constantino family and larger investors and split 35/1. There are now like 2 BILLION preferred shares and 277 million common shares, which are the bagholder capital structure shares remaining for the individual investor.
You see, the Constantino family spun off "SMILES S.A." as a lifeboat from GOL. It trades under the ticker SMLE3 on the Bovespa and of course not on the NYSE. since spinning off for a whopping $400m for GOL to squander, the market cap of SMLE3 has grown to $6 billion reais while GOL's has tumbled to $1.4 billion reais. Meanwhile, GOL has held 54% of SMLE3 stock and assumed all of it's debt which is denominated in USD.
So what happens next?? GOL is restructured, all of Delta's loans are secured by the SMLE3 stock held by one of GOL LUXCO's shell companies (see the GOL investor relation website if you do not believe me). The new "preferred holders" and bondholders get made whole by the liquidation of 54% of SMLE3 and whatever is left after $2.7 billion USD ($9B reais) debt is paid off (less than zero or something like that) will be available to the new "common" holders who once thought they were getting a bargain staving off the 35/1 split.
all in all, I have brought this ponzi scheme to the attention of the SEC and other regulatory authorities and we will see if they choose to investigate. sad really, considering GOL has a CASK lower than any airline on planet earth. if gol's debt had been properly denominated in local currency this would be a $30-40 stock easily. unfortunately, $0 is the long term price objective now. GOL is terminal.
Unless the FEDS ease on the new law. Will take 5-6 years to bring along enough pilots to fix this problem. By then, RJET will see a take under or maybe even go the way of Pinnacle = BK
you deserve it and you're also in violation of Regulation T which could carry a criminal penalty since I am 99% certain the only way you obtained 93,000 shares is with "day trade buying power" which is a violation to hold overnight with, hence the forced liquidation which you deserved. It is idiots like you and hedge funds that excaserbate moves such as these and give guys like me opportunity to invest cash (only) into distressed situations. if it makes you feel any worse, I owned 51,000 RJET from $2.78 to $13, sold, and bought back almost twice that amount under $3.50 yesterday and sold it all @ $5.50+ today. good news for you is you'll get another chance if you want it, however, you'll lose it all next time bc this was nothing more than a dead cat bounce...BK is coming for Bryan Bedford who sold the golden goose in Frontier.....
And btw, flying is not a right or entitlement....period.
Where was the govt when the sector was liquidating in 2008-10??
Source SEC filing on Gol website.
That said, it is now time to buy a little.
As far as I know, the 8,000,000 share buy made by Janus is a new holding. That's a pretty nice bet. I myself predicted $1s months ago but began buying today @ $1.91....could go lower, maybe even BK, but not likely ahead of the olympics....likely a chance to double $$ here in 6 months or so.
In fact, I will go further and say the stock has NEVER, EVER been so cheap on a valuation basis. It is my opinion that this is quite possibly the very last chance to buy these stocks before they make a march into the triple digits and stay there for many years. Don't believe me? Well, UAL, AAL and DAL were all over $100 in the 90s....in fact, UAL was $200+ at one point with half the EPS it has now. AAL has $100+ written all over it if you can just ignore these idiot analysts and hedgefunds for a year or two. Just buy here or slightly lower and take a look a couple years ago.
It's different this time. Why? For one, the commodity supercycle is over and occurs 10 out of every 30 years. We have 10-20 years of cheap oil ahead....
I told a client of mine in 2007 ALK would earn $20/share ($10 now adjusted for splits) within 5-10 years....it's happenin' people! AAL will earn $10-15/share for many years to come, quite possibly more.