Jblu is a good buy out target for one of the majors. They have found a niche in the market and the marketing has created a Brand. People like flying the blue and I have taken many flights in the last few months and the planes are always packed. Becuase of the day with all the cancellations the stock went onto a spiral but this was a rare thing for Jet Blue to encounter. In any event their business model is sold, people accept and like flying this airlline and they have made a dent and a difference in a very compteitive market. They have good gates, planes, simplified maintenance having one model plane, good routes and expanding so airlines that want to add their routes to there especially if they are flying more foreign routes would benefit from buying this airline. Wonder who is waiting in the WINGS for this airline. Price is depressed so I see a lot of intrest coming soon especially before they get back up as a stellar performer. The time for this is NOW or it won't get any cheaper down th runway.
View: Annual Data | Quarterly Data All numbers in thousands PERIOD ENDING 31-Dec-06 31-Dec-05 31-Dec-04 Total Revenue 9,086,000 7,584,000 6,530,000 Cost of Revenue 6,311,000 5,091,000 4,488,000
Gross Profit 2,775,000 2,493,000 2,042,000
Operating Expenses Research Development - - - Selling General and Administrative 1,326,000 1,204,000 1,057,000 Non Recurring - - - Others 515,000 469,000 431,000
Total Operating Expenses - - -
Operating Income or Loss 934,000 820,000 554,000
Income from Continuing Operations Total Other Income/Expenses Net (67,000) 137,000 (16,000) Earnings Before Interest And Taxes 867,000 957,000 538,000 Interest Expense 77,000 83,000 49,000 Income Before Tax 790,000 874,000 489,000 Income Tax Expense 291,000 326,000 176,000 Minority Interest - - -
Net Income From Continuing Ops 499,000 548,000 313,000
I agree with you, the buyout looks more possible every day. As fuel climbs in price more people will look to fly rather than drive. This will allow JBLU to raise their prices. The increase in jet fuel prices will be somewhat nulified by JBLU's fuel hedges between 40 and 60 %.The fact that the price of their shares being down is also more reason for a buyer to come foward now rather than later. The gate space and equipment as in planes and ground equipment could not be bought cheaper than buying the whole pie and selling off things that are not needed. The market cap of 2 billion is less than 1 times revenue, very cheap compared to most buyouts. my guess is 15 per share if an offer comes by the end of May. If no one comes knocking by June I still think you will see 15 before the end of june...