SilverJet (Merged 30/05)
Join Date: Jan 2007
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What?! Silverjet shares closed 3.9 percent lower yesterday -- less than Ryanair (- 4.1 percent). Saying they ``collapsed by 6 percent'' is just wrong. They never even fell that low on the intradat, and say what you will, 6 to 8 percent swings in the shareprice (up or down) are not exactly unusual for this particular stock.
Join Date: Mar 2007
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Re:
"Its simple maths. low cost will always win during times of economic down-turn."
True, but that might well be where Silverjet scores because companies have to cut costs on business travel and they're not going to send their executives on economy/coach, are they? So Silverjet's a very good option.
"Its simple maths. low cost will always win during times of economic down-turn."
True, but that might well be where Silverjet scores because companies have to cut costs on business travel and they're not going to send their executives on economy/coach, are they? So Silverjet's a very good option.
Join Date: Jul 2002
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Silverjet shares today have collapsed by another 6% ending the day at their lowest since flotation. According to reports a major investor has sold a large stake based on the latest analyst reports.
Are we watching a sinking ship? I hope not.
Are we watching a sinking ship? I hope not.
Silverjet has announced a 54% load factor for January.
They are still claiming they will be making pre-tax profit and be cash generative in March. March is when the next two 767ERs are delivered, but still nothing about their deployment.
They are still claiming they will be making pre-tax profit and be cash generative in March. March is when the next two 767ERs are delivered, but still nothing about their deployment.
That's not quite how share prices work, as the share price quoted is often a sort of "theoretical" price, if there were to be a sale. Many shares do not trade each day, yet their prices are always quoted and still go up and down.
The large block could have been put up for sale but no one had bought them, then the price just goes down and down.
The large block could have been put up for sale but no one had bought them, then the price just goes down and down.
Join Date: Aug 2005
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LTNMan
You are ENTIRELY wrong I am afraid.
The market where Silverjet shares are traded have what are known as Market Makers who are the guys who quote 2 way spreads, i.e. a Buy price and a Sell price.
I used to do this for a living. Before becoming a Pilot a decade ago.
A Market Maker will adjust prices on what it believes the real price to be worth. He/she does not need to buy or sell any shares in order to set a price. Just use their judgment.
If the judgment is wrong, and say the price is set too low, the Market Maker will se a flood of buyers. The Market Maker will then take evasive action and raise the price of the shares until he/she sees a more realsitic two way flow of buyers and sellers. An efficient market. The same works in reverse if the price is set too high.
I am afraid that in my opinion Silverjet is going to struggle to see the year out.
A collapsing share price will make it difficult to raise new capital on the market via a rights issue or the like.
Quite frankly, we are in the midst of a credit crunch. People are wary of making investments or lending money to others. Silverjet is not a prime business, it is going to the wall. There are far better businesses to invest in currently than ANY airline. Let alone Silverjet. Sadly.
You are ENTIRELY wrong I am afraid.
The market where Silverjet shares are traded have what are known as Market Makers who are the guys who quote 2 way spreads, i.e. a Buy price and a Sell price.
I used to do this for a living. Before becoming a Pilot a decade ago.
A Market Maker will adjust prices on what it believes the real price to be worth. He/she does not need to buy or sell any shares in order to set a price. Just use their judgment.
If the judgment is wrong, and say the price is set too low, the Market Maker will se a flood of buyers. The Market Maker will then take evasive action and raise the price of the shares until he/she sees a more realsitic two way flow of buyers and sellers. An efficient market. The same works in reverse if the price is set too high.
I am afraid that in my opinion Silverjet is going to struggle to see the year out.
A collapsing share price will make it difficult to raise new capital on the market via a rights issue or the like.
Quite frankly, we are in the midst of a credit crunch. People are wary of making investments or lending money to others. Silverjet is not a prime business, it is going to the wall. There are far better businesses to invest in currently than ANY airline. Let alone Silverjet. Sadly.
Stansdead has given a much more eloquent description of what I over-summarised !
I feel one of the key reasons BA announced their London City to New York route so unusually far in advance, well over 12 months to inauguration, is to upset things for all the various premium operators going round looking for capital. I would do the same. You can't expect in a free market to be able to start a service against an established operator and expect them not to respond. Nor to grow suddenly to multiple frequencies and routes without the capital behind the business. It's what Freddie Laker told Richard Branson in the very early Virgin Atlantic days. I think one difference is that Richard Branson actually listened and took it on board; even then he had touch-and-go times (and I'm not speaking about training flights either).
If I was a Silverjet investor I would now be saying each month "shut up about load factors and published fares, just give me actual cash in and cash out, and the rest of the Balance Sheet for the company, and I'll soon work it all out for myself". Profit is opinion, cash in the bank is fact.
I feel one of the key reasons BA announced their London City to New York route so unusually far in advance, well over 12 months to inauguration, is to upset things for all the various premium operators going round looking for capital. I would do the same. You can't expect in a free market to be able to start a service against an established operator and expect them not to respond. Nor to grow suddenly to multiple frequencies and routes without the capital behind the business. It's what Freddie Laker told Richard Branson in the very early Virgin Atlantic days. I think one difference is that Richard Branson actually listened and took it on board; even then he had touch-and-go times (and I'm not speaking about training flights either).
If I was a Silverjet investor I would now be saying each month "shut up about load factors and published fares, just give me actual cash in and cash out, and the rest of the Balance Sheet for the company, and I'll soon work it all out for myself". Profit is opinion, cash in the bank is fact.
Join Date: Dec 2006
Location: UK
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Suspect this post will go the way of my last attempt. [zap]
I wish this airline all the best (sad that Maxjet failed) but
http://uk.finance.yahoo.com/q/bc?t=2...l=on&z=m&q=l&c=
does not give one much hope
I wish this airline all the best (sad that Maxjet failed) but
http://uk.finance.yahoo.com/q/bc?t=2...l=on&z=m&q=l&c=
does not give one much hope
Join Date: Sep 1999
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As an ex Laker employee I really want Silverjet to succeed. There must be lots of people like me hoping to travel with them later in the year at a price that I can afford.
...as for the thought of travelling in an A318 with tech stops, probably in both directions....
...as for the thought of travelling in an A318 with tech stops, probably in both directions....
Join Date: Dec 2006
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SilverJet Shares
London stock exchange have recently not been applying any changes to the Silverjet shareprice and seems to be sticking firmly at 25.50
Any ideas as to why?
Any ideas as to why?
Join Date: Oct 2006
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Does not look like the board even know what is happening or even what to say!
Are there cracks starting to appear?
Comment & Analysis
Silverjet Shoots Itself Down By David Stevenson
Onwards and upwards. Or not, in the case of Luton-based business-class-only carrier Silverjet (LSE: SIL), whose board had a quite extraordinary 'senior moment' this morning.
Two apparently conflicting trading statements within twenty five minutes left investors baffled and the share price battered, fuelling fears of more turbulence at the troubled airline.
At 7.01 am today, Silverjet (LSE: SIL.L - news) cautioned: "We no longer expect the group to be broadly cash neutral...by 31 March 2008".
But by 7.26 am, this had morphed to: "Whilst we expect the group to absorb cash (this financial year), the board continues to be confident Silverjet will be cash generative in March 2008".
Shum mistake surely!
Perhaps the management has had a rapid re-think.
Or maybe it's that early start, befuddling the brain.
Though neither these, nor any other explanation, appear to have filled the market exactly sky-high with confidence.
Particularly after the carrier 'fessed up to a January load factor, the proportion of seats sold per flight, of just 54%. Not only has this dipped below the 12 month average of 58%, it stacks up badly against the 64% level initially specified by the company as a break-even requirement.
After an initial 20% plunge, Silverjet shares rallied briefly but were still over 18% adrift at time of writing.
It all tends to reinforce a bit of recent analytic cynicism...
You may recall the company experiencing a little local difficulty less than three weeks ago. Broker Daniel Stewart had published a damning verdict on the airline's business model, forecasting that Silverjet was "doomed to fail after running out of money".
The carrier's management then hit back, unusually, with an official statement challenging several aspects of the broker's report, claiming the research contained "numerous material mistakes and inaccuracies" including overstated cost estimates.
But now, Silverjet's earlier forecasts of cash generation next year are clearly looking more questionable.
And previous protestations that the airline is in a strong financial position to "revolutionise long-haul business flying" are hardly looking more credible.
Are there cracks starting to appear?
Comment & Analysis
Silverjet Shoots Itself Down By David Stevenson
Onwards and upwards. Or not, in the case of Luton-based business-class-only carrier Silverjet (LSE: SIL), whose board had a quite extraordinary 'senior moment' this morning.
Two apparently conflicting trading statements within twenty five minutes left investors baffled and the share price battered, fuelling fears of more turbulence at the troubled airline.
At 7.01 am today, Silverjet (LSE: SIL.L - news) cautioned: "We no longer expect the group to be broadly cash neutral...by 31 March 2008".
But by 7.26 am, this had morphed to: "Whilst we expect the group to absorb cash (this financial year), the board continues to be confident Silverjet will be cash generative in March 2008".
Shum mistake surely!
Perhaps the management has had a rapid re-think.
Or maybe it's that early start, befuddling the brain.
Though neither these, nor any other explanation, appear to have filled the market exactly sky-high with confidence.
Particularly after the carrier 'fessed up to a January load factor, the proportion of seats sold per flight, of just 54%. Not only has this dipped below the 12 month average of 58%, it stacks up badly against the 64% level initially specified by the company as a break-even requirement.
After an initial 20% plunge, Silverjet shares rallied briefly but were still over 18% adrift at time of writing.
It all tends to reinforce a bit of recent analytic cynicism...
You may recall the company experiencing a little local difficulty less than three weeks ago. Broker Daniel Stewart had published a damning verdict on the airline's business model, forecasting that Silverjet was "doomed to fail after running out of money".
The carrier's management then hit back, unusually, with an official statement challenging several aspects of the broker's report, claiming the research contained "numerous material mistakes and inaccuracies" including overstated cost estimates.
But now, Silverjet's earlier forecasts of cash generation next year are clearly looking more questionable.
And previous protestations that the airline is in a strong financial position to "revolutionise long-haul business flying" are hardly looking more credible.
Join Date: Dec 2006
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oh dear, another blow for silverjet. I wonder if anyone on the inside has any information on the shareprice, has it stopped moving so in the event of complete collapse they have enough locked up in investments to tie up all the lose ends?
Yahoo Finance is giving information however on a 
0.30 (1.16%) for todays Silverjet share price
0.30 (1.16%) for todays Silverjet share price
Join Date: Jul 2004
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Probably a little late in the day now, but with results like this why don`t the management see that the business model isn`t 100%. Try changing it maybe too late by removing some of those business class seat and get some economy seating in those 767. Think a business model like Zoom would work better out of LTN. Maybe even those ex flyjet 757`s revamped would have been better.