Pinnacle Airlines Corp. (NASDAQ:PNCL) has traded as high as $1.45 during today’s trading session and last traded at $1.33 for a gain of 18.75% from yesterday’s close… PNCL shares traded as high as $7.48 over the past 52 weeks, which is 82.21% over that high at last traded stock price.
PNCL has taken a substantial hit in stock price after announcing its traffic statistics for December 2011 which showed a decrease in results year-on-year. Available seat miles fell by 6.7% and revenue passenger miles dropped by 6.9% in December 2011 for the month period in 2010. Get my next ALERT 100% FREE
As of February 1, 2012, Pinnacle Airlines and its subsidiary, Colgan Air, Inc., entered into an agreement with Continental Airlines, Inc. and United Air Lines, Inc.: (i) amending the terms of the parties’ Capacity Purchase Agreement dated February 2, 2007 for an interim period; and (ii) setting forth provisions related to possible further modifications to and restructuring of the Capacity Purchase Agreement after such period. The material terms of the Interim Agreement include:
· The term of the Interim Agreement commenced on February 1, 2012 and will end on April 2, 2012.
· During the Term, United shall pay certain aircraft ownership expenses and increased rates for Colgan’s provision of regional air services, including services provided by Colgan’s Saab aircraft under provisions substantially identical to the Capacity Purchase Agreement. Increased revenue received from United under the Capacity Purchase Agreement is expected to more than offset the lost benefit the Company previously negotiated with Export Development Canada for deferral of principal and interest payments for Q400 aircraft.
· If the parties do not reach a long term agreement revising the relationship of the parties under the Capacity Purchase Agreement and their pro-rate agreements beyond the Term, then United shall have the right, upon notice, to elect to modify the number of aircraft Colgan would operate under the Capacity Purchase Agreement after expiration of the Term. United would continue to pay the increased rates during this modification period.
· The increases in the rates to be paid by United to Colgan under the Capacity Purchase Agreement during the Term shall be structured as an interest-free loan which shall be automatically forgiven upon expiration of the Term or of the modification period, whichever is applicable.
The Company will file the Interim Agreement as an exhibit to a future periodic report.
About StockPreacher.com
StockPreacher.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
StockPreacher Disclaimer
This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. StockPreacher.com is a wholly owned subsidiary of BlueWave Advisors. BlueWave Advisors has not been compensated, and holds no positions in any of the stocks mentioned in this article.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
