Not feeling a lot of love here for the stock. In that, not saying, but a lot has happened lately as you know. Still think JBLU is a take over or merger target in 12 months or so. Don't just jump yet it has a long way to go and I still think it may be back in the the high 20's sooner than later. Gates in the NE are worth a fortune. DAL or LUV are still my two candidates for a buyout. DAL does not want LUV in BOS or JFK to contend with there. Let this Brexit thing pass over and see what is in store for us.
I've seen this same thing dozens of times in the past and it all works out in the long term. The one thing Pilot labor has on its side is that airlines are running out of qualified pilots to fly the big jets. AAL is retiring 23 pilots a day and DAL is on the verge of retiring half its pilot force. Don't tell me there is NOT a pilot shortage. Extending the flying age is crucial to all the carriers at this point in time. OR I guess America can watch another round of ASIANA type of flying by unqualified people at the controls of Americas pilot force. This is a BIG DEAL and Congress is once again asleep at the wheel. Flight Attendants can be trained in three weeks, pilots take years and millions $$$ to get them up to speed. JMHO I flew for forty five years.....
JBLU is an excellent airline and we'll run operation. It opens new routes when other carriers are still sucking their thumbs. Reminds me of LUV in the nineties. The stock is very undervalued currently. It is prime for a merger or buyout. The gates in BOS and JFK are a constant thorn in DAL,AAL, and LUV's side. What better way to alleviate this than to buy them or merge. SAVE is the fly in the soup of the industry and not on anyone's radar. IMHO JBLU is a huge bargain at these prices. HAL was a year ago. Maybe HAL could be a contender.
Sentiment: Strong Buy
Been around a long time in the stock market and buying airlines....I can tell you it is not what you hope for if you see a strike. It never works out for anyone. Take a deep breath. Ask any employee that has ever seen one or been a part of one.
Only a few times have I seen on 'Cramer" do a segment of over ten minutes on any company.
Recently he did on on LUV and it was a glowing report. I subscribe to his website. He had due to his research a $55.00 target for twelve months of LUV. All of the numbers he charted are correct. Debt,income,growth, and future projections were all spot on and concise to the point I was very impressed. However, in the short term how could he be so completely wrong on this one? I think a lot of this downside is a "herd mentality" with a look for the door before the sky falls around you. Don't see what it happening now with the stock as anything but fear of fear.. But Cramer might take a longer look next time. But I could just be the Sell in May and go Away. Down again today along with JBLU which is also a great buy at this price. Calm your nerves and HOLD. Many on WS are licking their chops to buy at these ridiculous prices. Summer will show incredible profits here.
All of this nonsense about fleet cutback is just not accurate. The 300 was planned to be retired and the additional 700's that are out there on the secondary market are there for the taking. This talk about striking will not happen. Labor unions for ever have always talked of strike and no one wins if they do. Cooler heads will prevail here. Getting the MAX online is just a matter on negotiations and is still months away. The sky is not falling as all would believe here and LUV is still a strong BUY. The competition is loving all of this rhetoric on the news cycle and it would be better served to the stockholder and the employee if someone would blink before this gets out of hand. JMHO as a stockholder of thirty years.
Sentiment: Strong Buy
ALK is a great company but what does each carrier get? NOTHING for LUV... Except the Hawaii routes, but SW could do that anyway without all the mess of a merger or buyout. HAL could be possible but that culture for the oldest airline in the USA to come together with the culture at SW might not make it. JBLU might work but the difference in aircraft types would be a huge obstacle for SW. Look at the move SW made with Airtran and the B-717,DC-9's, they paid DAL to acquire and then use them to compete against SW on former AIRTRAN routes. If, and that is a big word, can derive the logic an airline CEO uses to determine what a carriers next move will be you are a genius!!!
What does China have to do with LUV? Nothing. This just happens in a down trading flash. LUV could make $4Billion this year and more in 16 if oil holds steady or down, and it is predicted lower. Don't jump from the ship. It is a really good company and great investment. May get back in the high $40's this year. But never buy a stock with out a stop in place... Might buy more at this price.
I would increase my holding here another twenty per cent. This is a long way from topping out. When it hits $55 pull the trigger and it could hit $60. International terminal opens in Houston in October and maybe one in the future in FT. Lauderdale. This is a great company and makes a ton money currently. Oil is staying down for a long time. And buybacks are coming in Sept. I like AAL also but not as much.
IF they were I can assure you we will read about it in the paper and not here. This rumor has been going on for years. But they have bought three airlines over the duration of operation.