Oh how the mighty have fallen. Its sad when a rally off of the opening lows to 18.30 ish becomes a selling opportunity, but JBLU longs will just have to get used to that because reality keeps setting in bit by bit and it is like a boa constrictor, it ain't going to let go. No the reality is that JBLU is taking on a mountain of debt and as has been noted, much of it is variable and interest rates are rising. Combine this with the fact that they are not making any money of signficance, and have to continually increase debt to pay for unprofitable expansion, and unlike luv, relatively unhedged in a screaming oil market, and it isn't to hard to determine that a continual downward force to the trading range is what is likely to continue , just as it has been doing for quite some time. Your buy limit order at 17.5 will eventually get filled, the question is, will you want it when it does?
I didn't get it today. I did sell a load of naked march 17.50 puts this morning for 30 cents each. I think short term blue may rally from here, If it's below 17.50 next Friday I'll take the stock for a spin.
Everything you say is true, but there are true believers like lutzy that will support the stock so I'll be fine here. The same institutions that dumped this week are lining up for the convertible, issue is being very well received.
Notice I have not directed any posts to LLL of late, only to the board and you. You are right, I cannot convert any of my sep to roth with the income i am enjoying now, but the first year they created it , they gave a deal of spreading any conversion over five years on a tax treatment, and I arranged things, to make sure to be able to take advantage of it. Even then it was a partial conversion of the sep. My sep is still much larger than my roth. Re the convertible, they set the conversion price yesterday, 25 and change. Very telling. For thirty years the buyers get a cheap option that they get paid interest to hold. There are even provisions whereby they can force JBLU to pay back in full at certain interim dates if they get nervous about the way things are going. If the conversion price has been 35 or so, it would have been less diluting. But 25 and change! Quite a bit of dilution and capping of the stock price for the forseeable future. Very telling, because management essentially is paying the owners of the convertible to buy a 30 year leap call option of JBLU shares with at strike price of 25 and change. Why buy the stock?