SilverJet
Are Silver Jet the next casualty? Doesn't look good to me.
Yesterday's trading: Silverjet in for crash-landing
Geoff Foster, Daily Mail
15 January 2008, 7:50am
Storm clouds hovered above Luton-based business class only airline Silverjet as its shares nosedived 14p to 35½p after Daniel Stewart said sell and put a zero price target on the stock.
It believes the group's business model will never work and the company will eventually run out of cash. It raised £12m in a placing at 60p in November. The broker forecasts a pretax loss of £31m for the year to end-March 2008 and a £27m deficit for 2009.
Silverjet's claim that it only needs to sell a certain number of seats to break-even was rubbished by Daniel Stewart which said that its figures do not account for additional costs, such as advertising, administration and depreciation.
These could be quite substantial and with jet fuel prices up around 16% and 'dire' current traffic levels, all airlines are having a rough time.