JetBlue Airways Corp (JBLU)

[I_banker]

According to JetBlue's most recent quarterly earnings report (for the quarter ended June 30, 2023), the company has $1.82 billion in cash and cash equivalents and 333.25 million shares outstanding. This means that JetBlue has $5.45 per share in cash and cash equivalents.

JetBlue's company guidance for full-year 2023 earnings is for adjusted earnings per share (EPS) of $0.05 to $0.40.

[bunda]

read the news and fundamental. looks like you can use some help. keep buying and thank me later

[PennyWorld]

Delisting will not happen so there is virtually no risk of an R/S.. The pps would have to fall below $1 for 30 consecutive day. Not realistic.

JMHO, we'll be seeing $8-10/share somewhere between now and the summer of 2024. That's a 2x profit from these prices.

[I_banker]

He posted the same message two days in a row. It is just wishful thinking. I don't think you will see a meaningful upside move until at least the second week in October. As the 10/16 trial date approaches, you may get interest from hedge funds willing to bet on the outcome. As I have said in a previous post, JetBlue wins regardless of outcome. If the lose, they don't have to spend $3.8 billion for an asset that is not worth $1.5 billion today and if they win, they become the undisputed 5th largest carrier with 500 aircraft and a deep order book. They will have seriously overpaid, but it will vault them into the big leagues going forward.

It is the uncertainty that is weighing on the stock. That and jet fuel prices.

[John_Vallay]

It would not be a hostile takeover. Spirit shareholders do not want to acquire another company and Spirit's balance sheet does not provide an opportunity for an acquisition to happen. Spirit management knows they can not support an acquisition of any type and raising capital would be a moot point.

As for Jet Blue being delisted or moved to OTC, it will not happen because they can do a reverse stock spilt. Jet Blue has an intrinsic value and a book value that exceeds the current market cap.

Not to mention that Blackrock bought over 9 million shares over the 3 month period ending June 2023, as well as other very large investment firms acquiring the stock on the open market.

To be fair Wellington has sold a substantial amount of stock for the quarter ended June 2023, but the buying by other institutional investors has been far more than the selling.

This can be as simple as hitting the bod for the past 3 months

[John_Vallay]

I am LONG JBLU and would like to see an increase in stock price, but I am curious why do you post BIG UPSIDE TODAY

What is your thesis behind the statement, or are you just hopeful the stock will go up. I am trying to understand what you are posting or if its hyperbole

[bunda]

big upside today.

[PennyWorld]

Good points, but with a positive outcome from the upcoming October trials (which I believe will happen), then everything else will be a moot point IMO.

[bunda]

big upside from here

[I_banker]

The removal of jetblue from the S&P 400 midcap index on 9/18 may have led to some near term selling pressure. JBLU was added to the small cap S&P 600 but there is substantially less interest in that index by ETFs/Mutual Funds that net net there was selling pressure on the stock.

[PennyWorld]

I believe that Jetblue will be the winner in that trial. They have been taking actions by divesting assets to improve the optics on their behalf. Time will tell.

BOSTON, March 21 (Reuters) - A U.S. judge on Tuesday scheduled an Oct. 16 trial in the U.S. Justice Department's lawsuit seeking to halt JetBlue Airways Corp's (JBLU.O) planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines Inc (SAVE.N).

U.S. District Judge William Young in Boston scheduled the nonjury, four-week trial during the first hearing to be held in the blockbuster case, which the Justice Department filed two weeks ago.

[I_banker]

JBLU is stuck in a bearish trend until the antitrust trial next month. Too much uncertainty for people to go long. However, resolution of the trial will be bullish for the stock regardless of outcome. If they lose, the market will cheer the fact that they are not overpaying by almost $2 billion for Spirit. Spirit stock will likely crater to half its current value (less than $10/share). If they win, the market will cheer because they just became the lowest cost bulge bracket airline with almost 500 aircraft and a deep order book and in the process they eliminated a lower cost rival. The only airline of any real size that will have a lower cost structure will be frontier (and allegiant but they are really too small to consider). Frontier's and Jetblue's route structure doesn't really overlap. Frontier may well be a future acquisition of Jetblue.

[PennyWorld]

Won't happen. That would be panic thinking. In 6 months this will be at $8+. Good buy opportunity for those with longer term thinking.

[Idiot Mayor]

Won’t be long before it loses NASDAQ qualifications and gets bumped down to the OTC….. this is beyond ridiculous.

[Idiot Mayor]

Wouldn’t it be ironic if Spirit initiated a hostile takeover.

[alchemytrader]

Under 5.00 today. Im waiting for 3.00s.

[John_Vallay]

A public company WORTH is determined by the market cap. The stock price determines the WORTH, but only when calculated on a fully diluted basis.

In other words, a company with a $5.00 stock price can be WORTH $10 Billion, and can acquire a company that has a $25.00 stock price if the WORTH is only $5 Billion.

Jet Blue is worth $1.6 Billion
Spirit is worth $1.7 Billion

These numbers are based on today's closing stock price.

Spirit has been valued (WORTH) in the $1.7 Billion range for last few months.
Jet Blue was valued (WORTH) in the $3.2 Billion range just 2-months ago.

The recent decline has been bad for Jet Blue and therefore not sure how and if that will impact the acquisition/merger.

[PennyWorld]

Donald Smith & CO. Inc. (and others) Increases Stake in JetBlue Airways.
https://beststocks.com/donald-smith-co-inc-increases-stake-in-jetblue/

[PennyWorld]

This is a patience game.

[Idiot Mayor]

Sweet Jesus….. We have a company worth $4/share trying to buy a company worth $16/share.

I’m now wondering if JBLU is on the verge of insolvency. This is now hitting all time low levels with zero reason (that are known publicly) for it. Fuel rates affected other airlines, but this is pathetic.

Will we see $3’s?

[PennyWorld]

I think that once the acquisition/merger with Spirit gets the green light we'll see a 2x banger here.

[gladeshawk]

I believe JBLU is hedged against rising oil prices. Just a FYI.

[TheFinalCD]

SAVE JBLU https://www.reuters.com/markets/deals/jetblue-agrees-sell-spirit-assets-boston-newark-allegiant-2023-09-11/

[gladeshawk]

Oversold can always get more oversold. I have fair value around $5.75-$6.00. HAWK

[PennyWorld]

I think institutions are pushing the pps down and accumulating at this level. We'll see teens again by summer 2024 (or much sooner).

[Idiot Mayor]

Selling down here is just sheer stupidity. So is not buying, for that matter. It hasn’t been this low in 12 years. On no bad news. Hell, even on bad news, it’s too low right now.

[gladeshawk]

All my chart indicators are in oversold territory. IMHO, $4s would be a "screaming" buy.

[gladeshawk]

Chart looks oversold.

[PennyWorld]

If I see 4, I'll average down again.

[Idiot Mayor]

Good Lord are we going to see 4’s?!?!??? Maybe Republic can attempt a hostile takeover? This is getting stupid.

[PennyWorld]

6.92 for me. I may average down on a deep dip.

[Idiot Mayor]

And dropping. Double ouch. No tangible reason for it though. This stands to make good profit.

[alchemytrader]

5.58. ouch.

6.47 starter position here. not liking this but luckily bought small.

[PennyWorld]

I think 10 is an easy 12 month target (maybe 3 month). Fundamentals are very good. I suspect that the pps push downward is the result of institutions playing around so that they can accumulate 'in mass' at lower prices. JMHO

[John_Vallay]

I do not know where the stock will be 1-month from now, none the less 6-months from now, but the balance sheet, cash flow and pro forma earnings per share tell me that $6.00 a share is undervalued.

I am not thinking $10 or any price right now, I am just hopeful the sell-side is out. What I really mean is that I hope all the current shareholders that wanted to sell are out, and I hope that the shorts had to cover so they are out (and made their money) so now LONG investors can come in and make money on JBLU.

If I am wrong, it wont be the first time I am wrong, but it doesn't happen that often.

[PennyWorld]

It's not a swing trade play. She will be at $10 within 6 months. JMHO

[gladeshawk]

Just got in with a small "starter" position. Chart looks oversold to me. Just a FYI. Maybe another run to $8-$9.00.

[John_Vallay]

The summer season has been predominantly good for all airlines so as long as JBLU doesn't have massive expenses or unforeseen costs associated with respect to software and computer updates and hardware then I expect the next 10Q to be good, but that alone will not drive the stock price up. I think new routes and somehow getting away from all the price wars with other airlines will be the driving force for stock.
I also think a merger or some form of acquisition with a regional international carrier is something that JBLU needs in its quest to be considered one of the true major carriers on an international level

The Spirit deal has and will create headaches and that is why I think some other type of M&A is necessary. Truth is I am not a fan of the Spirit deal, unless JBLU believes Spirit has that many loyal customers and those customers will use JBLU for routes that Spirit does not fly. But that is something only JBLU and Spirit management know because they have all the data on customers.

But it better be good for cross-selling to the other airline customers post closing of the deal.

$2 Billion market cap does seem quite low for their revenues, assets, cash flow and future expectations.

[PennyWorld]

Give it 1 year and this will be a 2x or 3x banger.

[alchemytrader]

I predicted COVID would come back just in time for the elections. The plan is to lock people down again and try and force mail in ballots. I dont think people will comply again. You can call it a coincidence but to me its too convenient.

COVID was MANUFACTURED.

[Idiot Mayor]

You can blame the stupidity of people (and the Democrats ability to prey on it) for this drop. An election is coming up that needs to be rigged again - therefore Covid is coming back - therefore travel will drop - therefore who the hell knows what happens to any airline anymore.

Financially, there’s ZERO reason why this stock isn’t back above $12. It’s just fear. Now the question is, can it tread water long enough to see the other side. Being lower than it was during the worst of 2020 when business is booming is just plain mind boggling.

[alchemytrader]

i still have 6.47 avg. i dont add anymore just in case it breaks believe 6.00.

Market not looking too hot. Holding 2 other bags and being down 5 figs is not fun.

[Idiot Mayor]

You were saying?

At its 5 year low with no bad news. This one is fish in a barrel.

[alchemytrader]

I regret not adding 6.30s today. I think that was the last chance and we've likely bottomed (for now).

[John_Vallay]

Just got into Jetblue over the last 2-weeks.

The run down in stock price does not reflect the fundamentals or true value of the stock. Based on institutional investors holdings it would seem as if some large funds sold the shares but that doesnt mean the sell off was due to JBLU, or maybe the funds had to sell.

Regardless, fundamentals look good and it's time to take a flight with this stock.

[alchemytrader]

Got in some 6.47 today. Will hold and not fold for scraps this time. I like Jet Blue.

[PennyWorld]

Looks like JBLU is going to ALMOST hit is 'all time' low! Two years from now investors will be looking back at today price and feel sick that they didn't get in now.

[alchemytrader]

6.43

[gladeshawk]

Saudi oil cuts will raise fuel costs. PPS will drop back into the $6s maybe lower.

[gladeshawk]

I have it on my watch list. Still looks a bit "iffy". HAWK