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Red Oak Partners boosts stake in Global Crossing Airlines with $274k purchase

Published 04/17/2024, 05:12 AM
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Red Oak Partners, LLC, a significant shareholder in Global Crossing Airlines Group Inc. (OTCMKTS:JETMF (OTC:JETMF)), has increased its investment in the company with a recent purchase of shares valued at approximately $274,580. The transaction, which took place on April 11, 2024, saw Red Oak Partners acquiring additional shares at a price of $0.38 each.

The investment firm, which has a history of active involvement in the companies within its portfolio, added a total of 722,581 shares through two separate transactions. These purchases were made indirectly by The Red Oak Fund, L.P. and The Red Oak Long Fund, L.P., for which Red Oak Partners serves as the general partner.

This latest move by Red Oak Partners demonstrates a continued commitment to Global Crossing Airlines, an organization within the scheduled air transportation sector. The acquired shares bolster Red Oak Partners' total holdings to a significant number, reflecting confidence in the future prospects of the airline group.

The transactions were disclosed in accordance with regulatory requirements, and the details were made public through a Form 4 filing with the Securities and Exchange Commission. David Sandberg, the managing member of Red Oak Partners and the portfolio manager for the funds involved, signed off on the filing. It is important to note that Red Oak Partners disclaims beneficial ownership of the reported securities, except to the extent of their pecuniary interest.

Investors and market watchers often scrutinize such transactions as indicators of insider sentiment towards the company's financial health and future performance. With this acquisition, Red Oak Partners has signaled a bullish stance on Global Crossing Airlines, potentially influencing the perspectives of other stakeholders and market participants.

InvestingPro Insights

Global Crossing Airlines Group Inc. (OTCMKTS:JETMF) has recently seen significant investment activity from Red Oak Partners, LLC, suggesting a vote of confidence in the airline's potential. To provide further context to this development, key metrics from InvestingPro reveal a mixed financial picture for the company. With a market capitalization of $30.1 million, Global Crossing Airlines operates with a negative P/E ratio, reflecting its current lack of profitability over the last twelve months as of Q1 2023.

The company has experienced robust revenue growth, with a 64.89% increase in the last twelve months as of Q1 2023, and a quarterly growth rate of 65.91% for Q1 2023. However, this has not translated into profitability, as indicated by an operating income margin of -9.91% and a return on assets of -22.78%. The gross profit margin stands at 8.65%, highlighting challenges in cost management and profitability.

InvestingPro Tips for Global Crossing Airlines underscore the financial hurdles the company faces. It operates with a significant debt burden and may have trouble making interest payments on its debt, which is further exacerbated by a rapid cash burn and weak gross profit margins. Additionally, the company's short-term obligations exceed its liquid assets, and it does not pay a dividend to shareholders. With these challenges in mind, Red Oak Partners' recent share acquisition presents an interesting dynamic in the assessment of the airline's outlook.

For investors seeking a deeper analysis of Global Crossing Airlines, InvestingPro offers additional insights. There are currently 7 more InvestingPro Tips available, which could provide a more comprehensive understanding of the company's financial health and future prospects. To access these insights, visit https://www.investing.com/pro/JETMF and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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