For the last 3 days Jalsy is going down too fast. Today it went down another 37%. why is that? I believe the article which was posited on Japan time was the main reason for the panic selling. Read this part of the artical
Knight Ridder/Tribune ”Business News ”
(…. According to ETIC’s rehabilitation draft, JAL will cut 15,661 jobs, or about 30 percent of its workforce, by the business year ending in March 2013 .
JAL also plans to cut 31 unprofitable routes and sell about half of its affiliated companies to concentrate on its core airline business.
While JAL is expected to post an operating loss of Â¥265.1 billion for this fiscal year, which ends in March, ETIC said it will reconstruct the company to post a Â¥90.4 billion operating profit after three years. Also in the works is the delisting of the carrier’s stock….)
As I have mentioned on my last artical (JALSY, is it a Buy, Sell or Hold?) JALSY is a company which has filed for bank bankruptcy. Buying any BK stock is a very risky play…this stock can get wiped out in seconds, when the company deiced to exit a BK.
JALSY needs a good news to turn around. But the real question is which will hit the wire first, Delisting of common stocks or the new alliance with Delta Air line ? This uncertainty keeping investors away from buying.
when they announce the partnership with Delta and switch to the Delta -led SkyTeam global airline alliance. which can triple their revenue over their current contract with American Airlines , then maybe JALSY will gain some ground, until then, the future doesnt look bright for JALSY.
GOOD Luck.
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