DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A

RE: Lunchtime conversation

[Mongoose11]

The low volume is very frustrating as is the fact that the last few quarters numbers warrant a more favourable response than what we've seen.

Alas, all I can figure is that there is an overall extreme aversion to risk in the macro market these days coupled with a more specific failure to get the financial analysts who follow DA.A to create more demand amongst their investor clients.

I think the best way to create demand would be to make the stock more attractive to shareholders by doing some focused share and debenture buy-backs and/or institute a small dividend. I think the current situation is frustrating for the insiders as well. They must really be thinking "what the hell else do we have to do to get respect!".

If the insiders have any intention of putting more cash into DA.A another option would be to go private. If the market can't reward the efforts what's the point of staying public. 

The 14,511,000 shares of the company are worth a total of only $55.9 million as of today's close (3.85/share). Since the insiders already own 60%. With annual earnings of say 1.25/share why not go for the other 40%? They would save millions per year on shareholder costs that are of questionable value at this point. As well, they could run the business more appropriately in order to maximize opportunities instead of having to answer to a few financial analysts that are really quite useless right now as far as I'm concerned.