Stockchase Opinions

Bruce TattersJetBlue Airways Corp.JBLUTOP PICKNov 21, 2016

The will get tax relief from the election. For decades airlines were hated businesses because they were so competitive. Now the top 4 airlines represent 91% of the industry in the US. They are almost an oligopoly. They now have pricing power. (Analysts’ target: $22.42)

$20.67

Stock price when the opinion was issued

$5.15

As of Jun 01, 2026. Market Open.

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DON'T BUY

Too risky for him. Are better fundamentals elsewhere.

DON'T BUY

She sold it earlier this year at a profit. As for today's 14% spike on merger talks, JBLU has talked mergers before which didn't happen. She won't buy it.

SELL

Sold it at a big loss. She held it for the last 1.5 years because she felt it was oversold. It's suddenly up 36%, but she took a loss. She may return to this lower. They took on too much debt among other problems. Are neither a discount or non-discount airline. In no man's land.

DON'T BUY
Announced a hostile takeover of Spirit Airlines today. Really? Won't the Justice Department and Pres. Bidec nix this deal for being anti-competitive?
COMMENT
options action It's trading at a 52-week low, but a huge buyer in option has bought 22,000 of the May 15 calls. Trading around $12. 19,500 of these are at 15-20 cents. The stock has been terrible no matter what, but the market is looking for a bounce.
BUY
She bought it last fall, knowing it was early, but she planned to be patient. The Spirit acquisition announced today should accrete. True, there may be regulatory headaches, but on the whole this deal makes Jet Blue stronger in 3, 5,10 years. Be patient.
COMMENT
The question is will Washington allow this merger with Spirit, just announced. It's better for the entire airline industry if it passes.
DON'T BUY

He doesn't expect their recent strength to continue. Instead, he'd look at Southwest Airlines.

COMMENT

Aerospace has had some pretty tough volatile times lately. A bunch of industry metrics are pretty toppy. This company has found a way to squeeze out operational efficiencies. Their revenue generation and cost efficiencies have really improved. It has had a tough year with only mid-to single low digit EPS growth, so there is not a lot to pin your hopes on. He would look at other defense areas or an ETF.