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Buy under $40, sell over $40 has been the trend for about a year now it seems.
Time to reload under $40!
They'll get dragged yes, but I just want to play the upside once we hear what that magic offer $ is. JBLU says hey we offer $47, it's gonna go straight to that and that is when I'm out.
I'm hearing $47 is the target number.
I've seen a few analysts call for an expectation of $45-$50. The key thing in this case is the amount of cash in the deal versus stock. Either way, there is no brainer upside there. I'm just looking for some kind of small pull back in VA but it's not happening...
Anyone else wising up and buying some VA shares for this buyout?? JBLU and ALK are both bidding...
JetBlue, Alaska Air Bidding for Virgin America
Source: Dow Jones News
Low-fare startup Virgin America Inc. may soon have a new owner.
Takeover offers from two other U.S. airlines—JetBlue Airways Corp. and Alaska Air Group Inc.—are due by the end of the week, according to a person familiar with the matter, in what could signal the latest wave of consolidation in the industry. A preferred buyer could emerge as early as this week, the person said, though a final deal could take longer to complete. The details of the potential offers couldn't be determined.
The possible takeover of Virgin, a small, San Francisco-based carrier, suggests consolidation in the industry is moving to the regional carriers and ultradiscounters after mergers between 2008 and 2013 combined eight big carriers into four, which now control more than 80% of the U.S. domestic market. The four, in order of size by U.S. traffic, are American Airlines Group Inc., Delta Air Lines Inc., United Continental Holdings Inc. and Southwest Airlines Co.
Virgin America, based in Burlingame, Calif., near San Francisco International Airport, was launched in 2007 and was a steady money-loser until 2013, when it started turning itself around by slowing its breakneck growth and filling more of its seats with higher fares.
Virgin America, now the ninth-largest U.S. airline by traffic, recently started expanding. It took five new Airbus planes in 2015, has five more coming this year and recently ordered 10 more. The company, which has a market capitalization of $1.7 billion, has launched service to Hawaii, expanded into Denver and Dallas and has added flights out of Los Angeles.
But its chief executive, David Cush, has complained the company can't get the gates or slots it needs to grow freely. Part of the problem, he has said, is that all the mergers have winnowed opportunities for smaller carriers.
The takeover talks were reported earlier by Bloomberg.
Virgin America went public in November 2014, and its founding shareholders, Richard Branson's Virgin Group Ltd. and New York-based investment adviser Cyrus Capital Partners LP, still control about 54% of the shares.
Helane Becker, an analyst with Cowen & Co., said those large holders could be seeking to monetize their investment.
She added that JetBlue would make the most sense for Virgin from an aircraft, network and product-offering perspective. JetBlue, the No. 5 U.S. airline by traffic, operates the same types of narrow-body Airbus A320s as Virgin America. The two compete on some major transcontinental routes. JetBlue also has a reputation for offering superior service at relatively low fares.
The person familiar with the matter said JetBlue would be seeking to boost its West Coast presence by buying Virgin America. Alaska's Alaska Airlines unit was interested in boosting the price passengers paid for their tickets in its existing markets, this person said.
Alaska Air Group, the parent of Alaska Airlines, is the No. 6 U.S. carrier by traffic. The Seattle based-company, which has been around for more than 80 years, hasn't made major airline acquisitions since the 1980s.
Under U.S. regulations, a foreign carrier would be limited to buying just 25% of Virgin America, although its voting share could go up to 49%. Virgin Group and Cyrus had to redo their initial plans for the equity in the new airline to satisfy U.S. regulators.
Write to Susan Carey at susan.carey@wsj.com, Robert Wall at robert.wall@wsj.com and Dana Mattioli at dana.mattioli@wsj.com
(END) Dow Jones Newswires
March 28, 2016 20:55 ET (00:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Damn!!!
JetBlue, Alaska Air Bidding for Virgin America
Source: Dow Jones News
Low-fare startup Virgin America Inc. may soon have a new owner.
Takeover offers from two other U.S. airlines—JetBlue Airways Corp. and Alaska Air Group Inc.—are due by the end of the week, according to a person familiar with the matter, in what could signal the latest wave of consolidation in the industry. A preferred buyer could emerge as early as this week, the person said, though a final deal could take longer to complete. The details of the potential offers couldn't be determined.
The possible takeover of Virgin, a small, San Francisco-based carrier, suggests consolidation in the industry is moving to the regional carriers and ultradiscounters after mergers between 2008 and 2013 combined eight big carriers into four, which now control more than 80% of the U.S. domestic market. The four, in order of size by U.S. traffic, are American Airlines Group Inc., Delta Air Lines Inc., United Continental Holdings Inc. and Southwest Airlines Co.
Virgin America, based in Burlingame, Calif., near San Francisco International Airport, was launched in 2007 and was a steady money-loser until 2013, when it started turning itself around by slowing its breakneck growth and filling more of its seats with higher fares.
Virgin America, now the ninth-largest U.S. airline by traffic, recently started expanding. It took five new Airbus planes in 2015, has five more coming this year and recently ordered 10 more. The company, which has a market capitalization of $1.7 billion, has launched service to Hawaii, expanded into Denver and Dallas and has added flights out of Los Angeles.
But its chief executive, David Cush, has complained the company can't get the gates or slots it needs to grow freely. Part of the problem, he has said, is that all the mergers have winnowed opportunities for smaller carriers.
The takeover talks were reported earlier by Bloomberg.
Virgin America went public in November 2014, and its founding shareholders, Richard Branson's Virgin Group Ltd. and New York-based investment adviser Cyrus Capital Partners LP, still control about 54% of the shares.
Helane Becker, an analyst with Cowen & Co., said those large holders could be seeking to monetize their investment.
She added that JetBlue would make the most sense for Virgin from an aircraft, network and product-offering perspective. JetBlue, the No. 5 U.S. airline by traffic, operates the same types of narrow-body Airbus A320s as Virgin America. The two compete on some major transcontinental routes. JetBlue also has a reputation for offering superior service at relatively low fares.
The person familiar with the matter said JetBlue would be seeking to boost its West Coast presence by buying Virgin America. Alaska's Alaska Airlines unit was interested in boosting the price passengers paid for their tickets in its existing markets, this person said.
Alaska Air Group, the parent of Alaska Airlines, is the No. 6 U.S. carrier by traffic. The Seattle based-company, which has been around for more than 80 years, hasn't made major airline acquisitions since the 1980s.
Under U.S. regulations, a foreign carrier would be limited to buying just 25% of Virgin America, although its voting share could go up to 49%. Virgin Group and Cyrus had to redo their initial plans for the equity in the new airline to satisfy U.S. regulators.
Write to Susan Carey at susan.carey@wsj.com, Robert Wall at robert.wall@wsj.com and Dana Mattioli at dana.mattioli@wsj.com
(END) Dow Jones Newswires
March 28, 2016 20:55 ET (00:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
This went from $10-$100, and back down to $37. It can't seem to catch a break now...
Well, I'm always the first to admit when I'm wrong. They took care of this quickly...
Thanks doing some research on it now. May join you for lotto play...
Yeah some of these airline employees are nuts, and you have to put your life in their hands. I mean I know these planes honestly fly themselves 90% of the flight but still.
Wow... United airlines pilot accused of running a brothel and pimping in Houston. Bet they shoot up Monday.
http://abcnews.go.com/US/united-airlines-pilot-arrested-allegedly-running-prostitution-enterprise/story?id=37903388
Sure, employees receiving raises is a good thing as they do deserve it. Wall Street on the other hand sees it as money not put in their own pockets.
Best damn move since merger was not hedging fuel. News today does not come close. I think we may see some relief tomorrow barring geopolitical mess.
Also, I would think a significant drop in aircraft purchases is a good thing. That is money either saved or given back to shareholders. I'm sure it is a lot more complex than that..
5.5M volume at 11:50am is pretty high. Who's selling?
That $40.19 print must have been a gap fill.
I found this within the durable goods report this morning:
"Spending on defense aircraft and parts led February's decline in durable-goods orders, falling 29.2% on the month. Civilian aircraft orders fell 27.1%. Separately, the nation's largest aircraft manufacturer, Boeing Co., said it received just two aircraft orders in February compared with 68 in January. But earlier this month, Boeing confirmed a new deal to sell 25 single-aisle jets to United Continental Holdings Inc., on the heels of a deal in January to sell 40 Boeing 737-700s to Chicago-based United."
"American Airlines Group Inc. (AAL) said Thursday that it would raise its flight attendants' pay by about 6%, a move that comes on the heels of a decision to allow employee profit-sharing."
I'm sure it has something to do with that..
Damn!
I'm still long with a large position, however, expect to see some downside on the next traffic report second week of April as there will still be some capacity and traffic pressure. Trust me, if there's any one who knows...it is DMC.
That's easy to say on a green day...Monday morning QB. There's still at least another 12 months or so before any "significant" developments. Let's hope your theory holds true...
Hey as long as we are holding these levels I'm a happy camper. Airlines trade on one thing and one thing only at this point. I'm just happy to be on the other side of it.
Yeah a couple more weeks of this and I'll finally be out. Awesome week in the sector
This is why I sell at different stages and unload the whole way up until it's all gone, as opposed to dumping it all at $40 lol.
Good time to get back in?
Just an uptrend in the market off those lows. Everything is going up take your pick.
Come on $43 fill my order...
I think we can get to $48. Coin toss from there as it's the top end. Buy in $30's, sell in $40's but sell in stages ($41, $42, etc). At least that's my strategy.
Got a better chance of Trump being elected than seeing $60. 52 week high is $56 on some of our best reports. The range is $34-48. Choose entries and exits wisely my man.
Hey man I'll take stuck in the mud at this level as oppose to down in the $30's ha.
Hope so. Hideous report this was..
JetBlue Airways Reports February Traffic
Source: Business Wire
JetBlue Airways Corporation (NASDAQ:JBLU) reported its preliminary traffic results for February 2016. Traffic in February increased 19.1 percent from February 2016, on a capacity increase of 19.6 percent.
Load factor for February 2016 was 83.1 percent, a decrease of 0.4 points from February 2015. JetBlue’s preliminary completion factor was 97.4 percent and its on-time (1) performance was 68.9 percent. JetBlue’s preliminary revenue per available seat mile (RASM) for the month of February decreased approximately 10.5 percent year over year. For the first quarter of 2016, RASM is expected to decrease between seven and eight percent year over year.
Brother...I've been holding this bad boy since October 2015 trust me I know haha. Shaved some off but should have taken a lot more off over $25.
Yeah right. Got a better chance of Obama serving a 3rd term. Just saying. I had this thing going into bankruptcy at some point this year. They really have no choice but to file...
Agreed
Was waiting for the Q to hit, and now that it has, I'm waiting on a few big down market days to cause this bad boy to fall big. .25 could be right in due time. I'm looking for at least .58-.62
Yikes