““CEOs go to their vacation homes just after companies report favorable news, and CEOs return to headquarters right before subsequent news is released. More good news is released when CEOs are back at work, and CEOs appear not to leave headquarters at all if a firm has adverse news to disclose. When CEOs are away from the office, stock prices behave quietly with sharply lower volatility. Volatility increases immediately when CEOs return to work.” —David Yermack, a New York University finance professor, whose recently released study shows a correlation between when CEOs take their private jets on vacation and movements in their companies’ stock price ”
A Boost for King Air 300s and Citation 500s
BLR Aerospace has received a supplemental type certificate from the FAA for winglets that mean good news for King Air 300 owners. The Everett, Wash. company claims the winglets will increase the twin turboprop's cruise speed by five to eight knots, reduce fuel consumption 3.5 percent and increase the rate of climb by 300 feet per minute. At the same time, Sierra Industries of Uvalde, Texas, is developing winglets as a retrofit item for the Citation 500 and 560 that will similarly enhance performance. FAA approval is expected in the third quarter of 2007.