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.
Given all these factors, why would SUNE have liquidity problems? They sold their Japanese assets, raised liquidity in January, and the biggest cash event with VSLR is off the table. Don't they now have excess cash?
SUNE and Terp up and VSLR getting crushed.... Outcome is pretty clear, the loser is VSLR and SUNE gets off the hook. SUNE to be at $5 soon. May be able to buy VSLR on the cheap when VSLR plunges... Sun coming through for SUNE and TERP, clouds covering VSLR...
Brilliant idea! Botch the VSLR and leave them hanging so that VSLR are the ones to go into bankruptcy. Then come in an buy up the assets for a fraction of what it would have cost. SUNE are the smartest guys in the room..
SUNE sold off many of their assets in recent months, did a capital raise, so without a deal to get done, they should be flush with cash. Further, this overhand should clear up on SUNE and the stock appreciation alone could be billions. So over time, SUNE is super strong, they just may not be able to pay right up front.
Market is saying this is great so party hard for SUNE, TERP, but VSLR just got screwed and falls off a cliff. So SUNE and company gets off this easy and it just sucks for VSLR shareholders?
Not much volume, so just lack of interest generally. BAML came out and reiterated $48 price target ,so plenty of upside. Sector also ran a lot lately and probably just taking a breather before moving up again. Nothing concerning, just lack of interest...
Analysts were asking about the debt repayment coming due and they kept dodging it and saying they will address it when that time comes???
Exactly, consumer are probably waiting for the two new products (Alta and Blaze) and not pull the trigger now. Company is in a refresh cycle, so a slowdown right before new products are launched isnt that surprising.
Full year guidance is in line with analysts, despite lower Q1 vs analysts estimates. Fitbit is coming out with two new products at the end of Q1, so lighter sales in Q1 shouldnt be a huge surprise. Who would be buying old models now when you can get the new Alta or Blaze in March/April. So given there is a reason for Q1 softness and still the company is guiding toward $2.4-$2.5B in revs, in line with analysts, this is by no means a shortfall, simply a product refresh cycle. With $700M in cash on the books and no debt and great products coming to market, there is no reason that this stock should crash like things are heading south.
Many analysts have said the selloff is an over reaction. However, their estimates have come down for future EPS and price targets by 30+%. JPM price target went from $320 down to $186. Cowen lowered PT from $272 to $140. So given the magnitude of lowered EPS and price targets, how is a 50% selloff way oversold??? Great hearing analysts say how overdone the selling has been, but at the same time lower their own price targets by a similar %.
LNKD issues 3-5% extra stock every year to doll out to employees. They already pay their employees really well, and with these types of employee grants every year, it is extremely costly and dillutive to shareholders. You factor these excessive grants to employees, the company looks pricey and extremely unfriendly to shareholders.
Given fed stress tests and high capital requirements, C has been building capital capital by not paying out earnings in the form of a dividend or doing stock buy backs. As such, C balance sheet is now flush with capital from retaining multiple years of strong earnings. Sell off to multiyear lows make no sense as the company 's balance sheet is strongest now than in recent history.
What can be better as an investment in turbulent times than prime US real estate? No global exposure, currency risk, etc. Great assets this company owns, poor execution...