““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 ”
Honeywell Forecast Hedges Helicopter Market Bottom
Honeywell's annual market forecast for civil turbine-powered helicopters released in late February predicts flat to slightly increased deliveries in the next five years compared with the previous five, but there are caveats aplenty. The forecast calls for deliveries to remain near 2008 levels this year before declining in 2010. The sharpness of the drop and how long it will last is largely unknown, forecasters noted, "due to the uncertainty of the global economy." Measured customer purchase expectations for the period are down 21 percent worldwide. Medium- and intermediate-twin helicopters posted the biggest anticipated drop, down 43 and 49 percent. Only expectations for turbine singles and light twins rose, but Honeywell anticipates that a good portion of this demand will be triggered by fleet attrition and by operators who trade down to smaller helicopters.