FJET – Firstjet – first international flight, but SP down

South African airline operator FJET (FastJet) announced that its first international flight will commence on 18 October, 2013.The share price reacted positively at the opening bell, but are now down nearly 3% at 9:15.

Shares are down 29% over 5 days. The share slide on this company has been inexorable, down nearly 89% YTD. FJET has a considerable growth story, but investors should always re-examine their investment thesis in the light of such developments.

FJET generates negative net cash flow, so will need considerable capital to fund expansion, and even just support its current loss-making operations. FJET has an EFF (Equity Financing Facility) in place with Darwin, and it’s clear that FJET shares are being diluted into oblivion.




About mcturra2000

Computer programmer living in Scotland.
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