Neeleman and Soros dumping JB shares? Why?

[General Lee]

NEW YORK, June 4 (Reuters) - Billionaire investor George Soros and David Neeleman, two men who helped launch No. 8 U.S. airline JetBlue Airways Corp. (JBLU.O: Quote, Profile , Research), are selling portions of their holdings in the company, according to regulatory filings.
Soros reported in a U.S. Securities and Exchange Commission filing late on Monday that he had sold about 1 million shares of JetBlue, bringing his stake down to about 10.8 percent of the discount airline.
Soros' sale came the same week as Neeleman, the company's chairman, who sold almost one-quarter of his holdings in the company, according to a separate filing on Friday. JetBlue removed Neeleman as chief executive from the company earlier in May.

"The recent sales by Soros and Chairman David Neeleman represent a strong bearish signal for JetBlue," said Ben Silverman, director of research at filing tracking site InsiderScore.com.


"Two long-term and committed shareholders taking money off the table with the stock down significantly from its January high and during a time of overall bearish sentiment towards the airline industry ... does not send investors a positive message."

JetBlue lost money for the first time in the fourth quarter of 2005 and has struggled since. In February, Neeleman and the company were criticized when an ice storm in New York brought JetBlue to a virtual standstill for several days.
JetBlue shares are off about 26.5 percent since January



Bye Bye--General Lee

 

[52560]

There credit rating was reduced further into junk status in mid-May. That may have something to do with it.

http://biz.yahoo.com/ap/070517/jetblue_ratings.html?.v=1

 

[johnsonrod]

Soros and Neeleman will say that they are simply "diversifying their portfolios." Yeah, sure.... Higher fuel prices for all, summer thunderboomers causing more money-draining delays, money-losing airfare wars by new and over-funded LCCs - this ain't gonna be a fun summer and these guys know it..........

With all of the new LCC capacity coming on line in the very near future (SWA adding 50+ 700s, Air Tran adding 700s, Spirit adding A319/21s, VA and Skybus growing), this low-cost market is only gonna get more competitive and less profitable.

 

[lowecur]

Why do you think?

B6 is overpriced. Should trade at 18-20 times projected earnings in 2007, as it's no longer a hyper growth company. Barger will probably sell 10 older 320's this year to roll back growth even further. He should reinstate the 190 deliveries IMHO, and cut the 320's down to around 75. ERJ has hired 2500 new workers and have a new assembly line to pump out demand from the Asian rim.

Their debt will be skewed even more once the new accounting principals come on line in 2008. Operating leases will have to be shown as a Capital Leases on the balance sheet as debt for both a/c and terminal leases. Even Delta's debt will grow by $10B as 166 a/c are presently under lease. This little ditty will send many airline investors to the doors.

Once the stock is down to $6 or $7, look for the private equity buyout. The same firm just may add FRNT to help synergize the new company. Jetblue will never put together a central hub without it.

imp:​

 

[Beetle007]

When NWA management started selling ALL of their stock 2 months before bankruptcy, everyone said they were just diversifying. Ironically the stock didn't drop like it should have until the day they filed bankruptcy.

When LCC stocks drop, I think we might see some mergers/buyouts. Maybe some of the big boys will even buy them to get them out of the picture.

 

[General Lee]

B6 is overpriced. Should trade at 18-20 times projected earnings in 2007, as it's no longer a hyper growth company. Barger will probably sell 10 older 320's this year to roll back growth even further. He should reinstate the 190 deliveries IMHO, and cut the 320's down to around 75. ERJ has hired 2500 new workers and have a new assembly line to pump out demand from the Asian rim.

Their debt will be skewed even more once the new accounting principals come on line in 2008. Operating leases will have to be shown as a Capital Leases on the balance sheet as debt for both a/c and terminal leases. Even Delta's debt will grow by $10B as 166 a/c are presently under lease. This little ditty will send many airline investors to the doors.

Once the stock is down to $6 or $7, look for the private equity buyout. The same firm just may add FRNT to help synergize the new company. Jetblue will never put together a central hub without it.

imp:​

Our Debt at Delta is down to $7.5 billion, which is down $13 billion total. Most of our leases have been regnegotiated by huge amounts, like the MD88s that went from $280,000 a month to $80,000. They will remain with us for ATLEAST 5 more years. Other aircraft are on the way supposedly. Maybe that is the debt you are talking about. We are in better financial shape than our peers (along with NWA), and if others want to do the same in BK, they are welcome to it.


Bye Bye---General Lee

 

[General Lee]

Another article Lowecur needs to read again

B6 is overpriced. Should trade at 18-20 times projected earnings in 2007, as it's no longer a hyper growth company. Barger will probably sell 10 older 320's this year to roll back growth even further. He should reinstate the 190 deliveries IMHO, and cut the 320's down to around 75. ERJ has hired 2500 new workers and have a new assembly line to pump out demand from the Asian rim.

Their debt will be skewed even more once the new accounting principals come on line in 2008. Operating leases will have to be shown as a Capital Leases on the balance sheet as debt for both a/c and terminal leases. Even Delta's debt will grow by $10B as 166 a/c are presently under lease. This little ditty will send many airline investors to the doors.

Once the stock is down to $6 or $7, look for the private equity buyout. The same firm just may add FRNT to help synergize the new company. Jetblue will never put together a central hub without it.

imp:​

Delta Up on Positive Analyst Notes
Thursday May 17, 12:54 pm ET Delta Air Lines Jumps on Positive Notes From Analysts, Citing Competitive Advantages

NEW YORK (AP) -- Shares of Delta Air Lines Inc., which recently emerged from bankruptcy, rose Thursday after two analysts said the company could become one of the most profitable in the airline industry following its restructuring.
Shares rose $1.23, or 6.7 percent, to $19.57 in afternoon trading.
Lehman Brothers analyst Garrett Chase, in a client note, began coverage with an "Overweight" rating and $26.50 target price. He said he expects Delta's earnings growth to outpace rivals for 2007 and 2008.
"Having emerged from bankruptcy, Delta finds itself on solid fundamental footing with continued momentum behind it," wrote Chase. "Cost advantage combined with new network discipline should sustain modest outperformance in earnings."
Bankruptcy forced Delta to cut costs and capacity, which has resulted in a competitive advantage, the analyst said.
Delta can benefit from continued international momentum, added Chase, who thinks shares are attractively priced.
Morgan Stanley analyst William J. Greene also rated Delta at "Overweight" with a $26 target price.
"With a focus on the premium and international business travel markets, Delta has a significant unit revenue growth opportunity should it reach parity with the industry," wrote Greene. "Combined with relatively low costs, Delta could be one of the more profitable U.S. airlines."
However, the analyst noted that the stock could become volatile if institutional investors make moves.
Uncertainty in the airline industry -- which is facing demand concerns, excess capacity growth, and high fuel prices -- could also push around Delta shares, Greene said.


Bye Bye--General Lee

 

[CitationLover]

Soros is dumping the stock because:

a) he wants to corner the French market again; or
b) he's dumping money in kucinich's campaign.

 

[IronCityBlue]

Soros is dumping the stock because:

a) he wants to corner the French market again; or
b) he's dumping money in kucinich's campaign.

:laugh: Oh man I hope its b. Every penny wasted on that pinko puke is valuable cash that can't be spent on a slightly more viable yet similar candidate.

 

[lowecur]

Our Debt at Delta is down to $7.5 billion, which is down $13 billion total. Most of our leases have been regnegotiated by huge amounts, like the MD88s that went from $280,000 a month to $80,000. They will remain with us for ATLEAST 5 more years. Other aircraft are on the way supposedly. Maybe that is the debt you are talking about. We are in better financial shape than our peers (along with NWA), and if others want to do the same in BK, they are welcome to it.


Bye Bye---General Lee

DL has done a credible job reducing debt while in BK, but they like most airlines have high operational leases that never are added as liabilities on the balance sheet. The $10B is probably more like $4 to $5B today (including airport leases). It will be interesting to see just how these stocks fare once these new rules are instituted.

As you know games are played with the accounting numbers that investors spend hours trying to sift and decifer. DL's stock will continue to be volatile until the investors can get a handle on the new business model as well as uncover any nonsense in the financial statements.

http://www.forbes.com/free_forbes/2007/0618/080.html?partner=yahoomag

imp:​

 

[Bavarian Chef]

Is it too much to ask for you two to take your Delta thread sex somewhere else?

 

[Smoking Man]

Sounds to me like someone got there feelings hurt and are taking there baseball and going home.

Or maybe they are getting together some money to trun coal into fuel.

 

[lowecur]

Is it too much to ask for you two to take your Delta thread sex somewhere else?

Yes!:bawling:

And stop plagerizing the color blue on your replys. I started that long before you were a twinkle in Neeleman's eye.

imp:​

 

[General Lee]

Is it too much to ask for you two to take your Delta thread sex somewhere else?

I guess we could talk more about why Soros and Neeleman would want to dump their stock? Would like us to focus more on that? I would think you would want us to get off that topic.


Bye Bye--General Lee

 

[Yuppyguppy]

It's easy the golden years of JB are over...welcome to the airline industry...and by the way you have to pay for your planes too no more free lunches

 

[DIAMONDDD]

Could this be the beginning of the end of JetBlue?

 

[Longhorn]

Oh crap, here we go again with the paying for our plane and the end is near....again. These statements seem like they run in a cycle. Well, this should be interesting to see....

 

[clickclickboom]

Oh crap, here we go again with the paying for our plane and the end is near....again. These statements seem like they run in a cycle. Well, this should be interesting to see....

Longhorn you are wrong went to fly yesterday and along with our alternate airport charts on the copilots side bin was a letter addressed to the aircraft from wells fargo it was a credit card bill that said " Your promotional 0% Apr never expires and it included some of these fancy little blank checks that it said could be used to consolidate bills, plan that special family vacation, or pay for some C checks..

We are also getting the chevron frequent drivers credit cards that save us 1% at the pumps..

 

[Bavarian Chef]

I would think you would want us to get off that topic.


Bye Bye--General Lee

You are a disgrace to people that are actually retarded.

 

[Bavarian Chef]

Yes!:bawling:

And stop plagerizing the color blue on your replys. I started that long before you were a twinkle in Neeleman's eye.

imp:​

As an actual PILOT on a PILOT website, I can do what I want. Now on that fast-paced and interesting INSURANCE website I hang out on, I am completely respectful.

 

[General Lee]

You are a disgrace to people that are actually retarded.

You should see me dance!


Bye Bye--General Lee

 

[Longhorn]

Well, I just found the video of General Lee dancing.....Nice moves general!!!

http://www.youtube.com/watch?v=JikHNG5llnM GL Dancing.

just having a little fun

 

[CaptainSpaz]

Muahaha

Threads like this one keep me coming back to FI.com. :beer:

Well, I just found the video of General Lee dancing.....Nice moves general!!!

http://www.youtube.com/watch?v=JikHNG5llnM GL Dancing.

just having a little fun

 

[johnsonrod]

Oh crap, here we go again with the paying for our plane and the end is near....again. These statements seem like they run in a cycle. Well, this should be interesting to see....

Hey Longhorn,

Answer me this. If you were a recent newhire, would you be concerned with the rumors of (or the potential for) a scaling back of the Airbus fleet and its impact on you?

I've heard those rumors too as a way to slow growth and operating expenses to better match demand.

 

[Bavarian Chef]

Hey Longhorn,

Answer me this. If you were a recent newhire, would you be concerned with the rumors of (or the potential for) a scaling back of the Airbus fleet and its impact on you?

I've heard those rumors too as a way to slow growth and operating expenses to better match demand.

Here's my take on Longhorn:

First off, he's a 190 CA. Second, when the fence comes down, he bids 320 CA and cuts his reserve time by X (could be a lil, could be a lot).

In other words, doesn't affect him much.

LH?

 

[Nado]

Its just the the Delta fixation with JetBlue. GL has been fixated on B6 for a long time. He used to brag about Song serving all three NYC airports.

I can't find a link to the new Consumer Reports airline survey. What was it, B6 #1 and delta 10 or so. No big deal I realize, but scoreboard is scoreboard.

 

[Bavarian Chef]

Its just the the Delta fixation with JetBlue. GL has been fixated on B6 for a long time. He used to brag about Song serving all three NYC airports.

I can't find a link to the new Consumer Reports airline survey. What was it, B6 #1 and delta 10 or so. No big deal I realize, but scoreboard is scoreboard.

http://blogs.usatoday.com/sky/2007/06/what_meltown_je.html

 

[Longhorn]

Chef,

Wow, do I know you? Very close my friend, very close. Yes, I am a line holding 190CA. If it were not for the fence, I would be able to hold A320 CA on the next few bids-junior guy in the last upgrade class was about 10 senior to me. But.....I am moving to New Hampshire next week and bidding back to BOS in NOV if the trips get any better and I can hold a line still. I was holding a line there since the base opened but I started to slip so I bid to JFK for the easier commute..I was commuting from S.Florida

Now that I am living in New England, I dont care about the commute and will hold off for 320 ca in bos. I dont care if I have to sit on reserve in my base if I live there. I just dont want to commute to JFK to sit on reserve on the 320. With the fence coming down, I dont think I would be able to hold 320 ca for at least another 18 months as most of the 190 guys and senior 320 fo's will be bidding over, besides I have another year on my eqp lock.

I do care very much about the pilots junior to me and how this all affects them. While I have about 1000 junior to me now, I have many friends that are here and they will be affected greatly by another slowdown. In the long run though, if a slowdown gets the company back on the right track, and stops some of the excess bleeding and makes us some money...and overall means that we have jobs 20 years down the line, then so be it. I just dont want to see us grow at the pace we have been, get big and fat on debt and crews, then go out of buisness...

lh.

 

[Longhorn]

johnsonrod.....

First, great name!

Second, I would be worried to a point but not about being furloughed. I would be more concerned with the upgrade time and time spent on reserve. If we do decide to sell more 320's, then the reserve time and upgrade time WILL get pushed back. Like I said in my above post, the slowdown would mean more stability and less growth to take a step back, breath and re-focus our companies direction. With DB in the drivers seat now, I think persoanlly that option would be a smart one and would help the company grow "smartly" in the future. But...if that happens, I also think upgrade time on the 320 will go to 6+ years and the 190 around th 3-4 year point. We have a young pilot group and there is not a lot of movement. I have been here a little more than 2 and 1/2 years and i have only moved up 40 numbers. The guys below me are moving up much more than that, simply due to attrition. Ask enterprise how many he has moved up....he was hired a year after I was, and its a huge difference.

Enterprise.....you there. Please shed some light.

 

[AutoBus]

B6 is overpriced. Should trade at 18-20 times projected earnings in 2007, as it's no longer a hyper growth company. Barger will probably sell 10 older 320's this year to roll back growth even further. He should reinstate the 190 deliveries IMHO, and cut the 320's down to around 75. ERJ has hired 2500 new workers and have a new assembly line to pump out demand from the Asian rim.

Their debt will be skewed even more once the new accounting principals come on line in 2008. Operating leases will have to be shown as a Capital Leases on the balance sheet as debt for both a/c and terminal leases. Even Delta's debt will grow by $10B as 166 a/c are presently under lease. This little ditty will send many airline investors to the doors.

Once the stock is down to $6 or $7, look for the private equity buyout. The same firm just may add FRNT to help synergize the new company. Jetblue will never put together a central hub without it.

imp:​

I seem to remember you were one of the chief pumpers of this pig, something about EMB's to LAS (At night of course, because the winds)