Mesa Air Group, Inc. (MESA)
The Company is a holding company whose principal subsidiaries operate as regional air carriers providing scheduled passenger and airfreight service.
Recs
Profits have gone FLAT.
Recs
Wouldn't put any real sure bets on this one. After the lawsuit with HA and the distruction of evidence, you can see how these guys play. They can't do it on their own. It's gonna take them some time to recoup from their wounds and losses. As you can see where it was and now where it is. Not going anywhere fast or soon.
Recs
Mesa is currently under investigation that it used Hawaiian and Aloha Airlines financials during bankruptcy protection to start a new inter-island airline (Go!). They have been claimed to use internal accounting data claiming to be a potential investor. Hawaiian and Aloha claim that this was never their attempt. Personally I think they never intended to invest and all along intended to enter the market. They will loose and damages alone could bankrupt the firm.
Recs
The rule of MESA is buy under five. Historically if you look at the technicals there is strong support in the $4.50-5.00 area. This is trading at near historic lows to book and sales ratios. They continue to deal with rising oil prices in step and I trust management to position this company to move stealthfully into the Chinese market.
Nero
Sagetrade
Recs
Mesa will be helping create a mainland China feeder airline and will hold a minority interest in the new company. (Chinese law dictates the percentage of ownership allowable.This relationship will begin after the first of next year.Remember - -The World Olimpics will take place in China nest year
Recs
In the short term this may ride the wave of airline happiness, but they are setting up to get killed in the Hawaiian market ($19 fares!!!) and tend to run the rest of their operatioin on a shoestring. Unable to attract pilots because of a industry worst labor agreement they will languish in their growth. All of the regional airlines are having a VERY hard time recruiting pilots and it will be interesting to see how it all plays out.
Recs
P/B loooks appealing, value play
Recs
growth, profitability,
could benefit from lower fuel costs

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