JetBlue TrueBlue - Stocks: Falling shares a bargain at JetBlue
JetBlueFA
Jan 21, 08, 1:55 pm
Soaring jet-fuel costs, management miscues and stiff competition have combined to run the shares of once high-flying JetBlue Airways into the ground. To be specific, they have driven the carrier's shares to a recent low of $4.48--down 72% in the last year, versus a 58% fall for the Amex Airline Index over the period.
Story By Crain's New York Business (http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20080121/FREE/699196135/1085)
The carrier is still not as liquid as they need to be and they are in a bind in one of the most cyclical markets out there, and the entirety of the market looks bad, especially on domestic routes where there is so much capacity that yields are terrible.
They have the one airline analyst calling the liquidity issue a done deal, but it is not all that clear, especially if the pressures on yields remain, as B6 has a lot of new birds coming online in 2008/2009 and they have to find something (hopefully profitable) to do with them.
Too risky for me - I'm not buying.
j3823x
Jan 21, 08, 3:20 pm
The carrier is still not as liquid as they need to be and they are in a bind in one of the most cyclical markets out there, and the entirety of the market looks bad, especially on domestic routes where there is so much capacity that yields are terrible.
They have the one airline analyst calling the liquidity issue a done deal, but it is not all that clear, especially if the pressures on yields remain, as B6 has a lot of new birds coming online in 2008/2009 and they have to find something (hopefully profitable) to do with them.
Too risky for me - I'm not buying.
The Q4 and Full Year 2007 earnings release is scheduled for 1/29/08.
Among other items, that call will give a relatively current update around cash on hand.
No doubt, these are times when market share matters.