if we don't have a major recession and simply have slow steady growth, this is priced insanely cheap. Most bankss trading for ~10X PE when interest rates around the world are going negative and with increased regulations and fines. OMF you get a company trading less than 4X and experiencing solid growth in the business. Insiders were buying at these levels, so is there a skeleton in the closet, or pessimism about the economy so high that it has crushed this stock? 3-4 yrs of steady economic growth, and the earnings pay for itself.
Domestic company with no impact from Brexit. Financials have rallied back all of their pre-Brexit losses, but OMF fell off a cliff and isnt really coming back. Trading for less than 4 times forward earnings! US economy shows no signs of strain and is actually growing nicely, so why is this priced for a dooms day scenario?
Let TA and its shareholders make some money and stop extracting all profits in the form of excessive rents, and you will have a TA stock that does well, happy shareholders, and no takeover noise... Portnoys are getting too greedy by completely squeezing TA dry to the point it is becoming a non-profit set up solely for the benefit of the Portnoys and cronies they are in bed with.
Share the wealth and avoid headaches of lawsuits, takeover, angry shareholders, etc...
Why wouldnt they just cut the dividend as opposed to put themselves in a position where they struggle to meet capital ratios and have to dilute shareholders at these low prices? Cutting dividend saves them like $1billion or so a year and could help avoid dilution at these record low prices.
Yes, stop buying planes and ramping up capacity where there is no demand for, go use the money on share buybacks...
"Double Digit Capacity Growth" is great news for JBLU? When the industry, now being led by JBLU goes on a capacity expansion binge, what usually happens next is overcapacity and a collapse in pricing. Happens to Drybulk, oil, commodities, etc... THANK YOU JBLU, JUST BUY MORE PLANS AND OFFER $50 ONE WAY FARES.
Poor RASM #s reported again today, stock moves toward new lows... Expanding for the sake of expanding is just a horrible model for JBLU and the industry... Look at all the support on this board for expanding and causing price wars...
No wonder this industry is getting destroyed. JBLU, who is leading these rediculously low fare initiatives is likewise getting crushed. So why price so low??? Is this a charitable industry? Why do JBLU shareholders encourage this?
JBLU's capacity ramp and super aggressive pricing ($60 one way trips) is killing the industry, including themselves as oil blasts higher. In an environment of rapidly declining oil prices, this cut throat strategy may work in winning marketshare and eking out a small profit while at it, but when oil rises, it just kills the industry as everybody is forced to match those $60 trips. 2015 was an anomaly year of plunging oil, and the aftermath of the capacity increases from 2015 environment will bring pain in 2016.