JetBlue Airways Corp (JBLU)

Foolish pick - 10/09

They offer a better product than all the other airlines. TV in every seat, streaming live TV, and Sirius/XM radio streamed to your seat. They also are projected to announce an EPS of .05 this quarter where as last year they reported an EPS of -.02. This is a growing airline that will take over market shares from giants like American and United, that are charging you for every bag you bring on board.

retiring baby boomers will do more traveling!

Unlimited travel pass is giving good exposure to a growing airline that has good service.

While I wasn't excited about the unlimited ride pass that gave JetBlue a nice spike last week, it did cause me to give them a passing analysis. That little 'ol Jet Blue is got a codeshare from Lufthansa shows that some of it's larger peers also believe that this regional airline is revalent. Southwest Airlines has been used in many financial courses as a case study of how to grow a business. Jet Blue could give Southwest some lessons in how to chose routes. My flaw with Southwest has been their not tackling the holiday/vacation routes to the Carribean and Mexico. I do understand it's a limited market, but it's also a market that good margins. Even in a recession JetBlue has shown some decent net tangible book growth. Debt, as a number, as you would expect in a high dollar resource laden business looks a little scary, but JetBlue has managed to hold onto and grow it's cash to help offset the debt if needed. I believe JetBlue is growing responsibly. It is showing that it can hold it's own in a recession, which to me means that it's potential if we can shake the bear would be very worthwhile in the risk/reward realm. The large revenue stream means that with some cost containment that JetBlue can pull their flight upright from the small loss they recently took. Fuel should stay manageable. If Jetblue learned any lessons form SWA on hedging then fuel would be an even lesser issue. Onward and upward, (but pack your parachute just in case the bears eat all the green shoots....silly 'ol bears).

short term unlimited ride pass will garner word of mouth buisness from those getting the good deal.

30% of cost is an unknown factor.....fuel.

expanding heavily in the carribean and other markets where american airlines is out.

just a better product with a better cost structure. waiting for some of the bigger guys to just collapse and jblu will pick up their stronger routes.

Better run than lots of other airlines. If they keep it up, they will be one of few that will survive and thrive in the longer 2-3 year frame.

Too much competition, AirTran, Southwest and Spirit will kill this one. Not to mention oil will go up another 10% before it settles

UP UP UP!!

This is an experimental portfolio consisting of small-cap or larger picks that have recently entered the $1.50-3.00 range (favoring the low end), with the theory being that most stocks entering this range are not going to stay there unless they've been there for a while already.
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Ah, Jet Blue, one-time royal crown of East-coast travel... can you make it there again? Not unless you folks get your debt under control and start putting in some margin... but I'm willing to bank on it, at least in this portfolio. If the other carriers can do it without going bust, so too can JBLU.

Speculative, watchlisting

What a strange market. We beat estimates on our earnings report and the stock gets absolutely annihilated. Strange times.

GMX has a strong case for this beating earnings estimates tomorrow.

Disclose: long with some March 7.50 calls.

Target again of $8

Mr. Market is being delusional to dump this 15% today. Easy money going long here.

JetBlue Airways will continue to be my Airlines play. So far, it's out performing.