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JetBlue Airways sets 3-for-2 stock split

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Cpt. Over

Member
Joined
Sep 5, 2003
Posts
17
JetBlue Airways sets 3-for-2 stock split
October 07, 2003 08:44:00 AM ET



NEW YORK, Oct 7 (Reuters) - Low-cost air carrier JetBlue Airways Corp. (JBLU) on Tuesday said its board declared a three-for-two split of its high-flying stock.

New shares will be distributed on Nov. 20 to shareholders of record on Nov. 10. The stock, which has only been publicly traded for 18 months, has more than tripled in price in the past 12 months as the New York company has capitalized on its low cost structure to fuel rapid growth, often at the expense of major carriers.

JetBlue stock closed on Monday at $67.53 on Nasdaq after touching an all-time high of $67.91.
 
Question regarding this. I will be in initial class starting Oct. 20. How would this effect me. I dont really understand the whole 3 for 2 split etc. Could someone help me fill my investing knowledge void in my brain.;) Thanks. Cant wait to be on the JetBlue side.
 
I just found the answer in this example I believe.


This year, the Board of Directors of ABC Corp. decided to declare a 3-for-2 stock dividend. The board declared that each shareholder would receive 0.5 new shares of ABC stock for every share currently owned.

Since you own 55 shares of stock currently, how many shares will you own after the split? The math works like this: Take your 55 shares and divide by 2. That gives you 27.5. Add those 27.5 shares to your original 55 shares, an you now have 82.5 shares of ABC.

I hope this helps. Wait, Im talking to myself... :eek:
 
Originally posted by Cpt. Over [POST #1]
JetBlue Airways sets 3-for-2 stock split
Originally posted by Cpt. Over [POST #2]
Question regarding this. I will be in initial class starting Oct. 20. How would this effect me.
Umm, unless they're handing out JetBlue stock as part of newhire orientation, not at all.


Originally posted by Cpt. Over [POST #3]
I just found the answer in this example I believe.

[blah, blah, blah...]

I hope this helps. Wait, Im talking to myself... :eek:
Uh, huh. Did they include the first dose of Blue Koolaid with the offer letter? :)

Seriously, though, Congrats on the job! And if there are any other voids in your brain (oh, say on flight time limits and rest rules) then you'd better start filling them right away with actual FARs. Because if you don't, JetBlue has a new version they'd like to plant in fertile minds.

Fly Safely!

(And if you ever start to hear yourself answer, be worried. Very worried...)
 
Well Pilots do get stock options. So depending when the strike date is set, it might be very important as to when a stock split happens. I believe the timing for this split was done to ensure the Oct pilot class (last of 2003) was onboard and got the options before the split happens.
 
I highly doubt that the company elected the split date based on a new hire class date that will effect 15-20 pilots. A few thousand options aren't going to be the determining factor when a million shares are on the line.

Stick your tongue out and look at it in the mirror, Looks pretty silly after drinking all the Blue-Aid.
 
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Stick your tongue out and look at it in the mirror, Looks pretty silly after drinking all the Blue-Aid.

I'm sure it looks one heck of alot better than having a BROWN one!!! I can only assume that it tastes better too! Please let us know.

V2
 
Yes, the company and board of directors can set the split anytime it wants to, especially if it favors the employees. This month there will be a major Crew Stock Purchase, which I know many of the 6000 employees here participate in. So yes, someone who buys 600 shares after the stock split will have 900 in November-- and is only possible due to the timing of this decision. Wow, go figure, a company who cares about the employees!!!
 
The 900 shares will be worth exactly the same as what the 600 were. Stock splits don't create wealth any more than splitting a $20 bill for a 10 and two 5's does. It simply reduces the price of "one share" without reducing the value of anybody's portfolio.
 
hopeful said:
I highly doubt that the company elected the split date based on a new hire class date that will effect 15-20 pilots. A few thousand options aren't going to be the determining factor when a million shares are on the line.

Stick your tongue out and look at it in the mirror, Looks pretty silly after drinking all the Blue-Aid.

Whether the rumor is true or not, doesn't really matter, though it does impact significantly more than 15-20 pilots...there are two classes in question, 36 pilots, plus many, many other employees hired in October. The JetBlue leadership really does care enough that it is quite possible this is true.

Why do I know? I'm in the new hire class and just listened to a day and a half of sessions on everything from crew care to values and airline economics to safety taught by none other than David Neeleman (CEO), Dave Barger (President), Al Spain (VP of Ops), Pete Russo (Chief Pilot), Mike Barger (Director of Training), Dean Melonas (Director of Pilot Recruitment) and many others on the leadership team.

To put this koolaid in perspective, I am not a spring chicken, nor am I here because I was furloughed or begging for a job. I came here because I researched this culture up one side and down the other, and made the choice to leave my past employer on my own. No, I was not in danger of a furlough, and no I don't think my past employer is going out of business. I just wanted to work in an environment where the leadership values it's workers and visa versa.

Let me tell you about an experiment I conducted a few months ago that convinced me this move was right for me (I'm not saying its right for everyone, and its not, but for me it was):

I asked the following three questions to 32 random JetBlue crewmembers on both coasts (pilots, flight attendants, customer service agents, mechanics, etc.):

1. Do you feel valued and respected at work?
2. Do you feel you have a voice?
3. Do you like your job?

32 of 32 answered yes to all three questions.

Then I asked the same questions to a similar random sample of "employees" at my former employer. How many said yes to even one of the questions....zero! Ask yourself and your fellow crewmembers these questions. What are their answers? Ask yourself if you like their answers. I didn't,so I left, even though I left significant seniority on the table.

Back to the stock at JetBlue. I think the 3-2 split says volumes about the philosophy here. Most airlines in the hey days would do anything for a short term rise in price. If the JetBlue leadership team were like the others, they would have split it 3-1 or at least 2-1. No, they did a 3-2, which means they don't want the stock to rise so fast. As my husband just said, David Neeleman threw a log on the fire (keeps the fire burning slow and long), not kindling (greed). Scaled, controlled growth are big words here....not explosive.

Maybe I'm drowning in blue koolaid, but my husband is a skeptic's skeptic and even he could read the sincerity in the leadership team's voice. We could see right through their brains in straight into their heart. Its not a pyramid scheme, its not Amway, its not People's Express. As Mike Barger said, "all of us are just 'dudes,' that includes you, me and David. None of us are special, we're all in this together." David Neeleman said "you will feel valued, respected and important in this organization."

Guys and gals this is real. I've spent significantly more than a decade at a major, and been through many, many leadership teams. None have ever been like this. If they are dispensing koolaid, so be it, sure tastes great.



Skirt
 
Welcome home

Skirt,

Nice post. Welcome home. Enjoy your time in Miami and see you up at JFK soon.


BlueBusDriver

:)
 
As Usual, You Know How to Say It

Skirt,
It's a pleasure having you on the jetBlue team. It is our gain and your old employer's loss. More importantly, the employees at your previous company have lost the leadership you demonstrate in each of your posts on this board. If the rest of the industry, management and labor, could follow your example everyone would prosper.
Too many individuals spend their time blaming the other "side" as opposed to solving prolems to make their company properous. Unfortunately, they turn to lawyers to solve their problems as opposed to compromising like adults. It is time for the battle of the greedy to end and make this industry stable for all employees. Thank goodness leaders like David, Dave and Herb are bright lights demonstrating airlines can make money and create a positive work environment.
Skirt, I look forward to flying with you and having a chance to buy you a "cold one." Best of luck in MIA.

jaxgus
 
WOW! Shocker!

As anyone can see from my profile, I'm not a prolific poster. However, I'm a heavy lurker and one of my favorite posters here is Skirt. Skirt, your posts are invariably insightful and lucid and you manage to add some measure of calm to the mudslinging that often ensues on this board. I am very surprised to read of your move and am happy you were hired. The seniority was the thing that was surprising but come to think of it, you'll fit right in because the other B6 folks here have the same temperament and approach to things. "Virtually" being exposed to you guys makes me want to work there all the more. While I enjoy posts from a few of you from outside of jetBlue as well, as a whole (of course no one is perfect) I find the Blue crew to best reflect a "culture" which is sorely lacking in buisiness today. Congrats Skirt - I hope your decision fulfills your hopes. (Re-reading this post, it sounds slavishly sappy, but I'm too tired to edit it to sound less wanna-beish).;)
 
The 900 shares will be worth exactly the same as what the 600 were. Stock splits don't create wealth any more than splitting a $20 bill for a 10 and two 5's does. It simply reduces the price of "one share" without reducing the value of anybody's portfolio

Very true. However, a split that takes a share down to the $20-30 range, optically enhances the stock for the average Joe. So the pilot new-hire at jetBlue that receives 6000 shares on day one, and turns into 9000 shares a few days later after the split, will probably get a much greater return as the stock rises. Just look at Microsoft. Off the top of my head, an initial $5000 investment in 1986 would equal over $3 million today. That was primarily due to the many, many stock splits; and for the lucky one's that held, their value increased exponentially.
 
Cpt. Over said:
Question regarding this. I will be in initial class starting Oct. 20. How would this effect me. I dont really understand the whole 3 for 2 split etc. Could someone help me fill my investing knowledge void in my brain.;) Thanks. Cant wait to be on the JetBlue side.

I'm fortunate enough to be in the same boat as Capt. Over, starting ground school on the 20th, and was wondering if anybody knows when the split takes effect. I sure would like to have the stock prior to the split but in reality I'm just happy to be here and am looking forward to many more future splits!

Counselair:D
 
The stock split includes all those who own stock as of Nov 10th, and takes effect on Nov 20th.

Good luck in training guys/gals!

And Skirt....tough to work out when you're in the Doral Ale House, eh?...:D
 
hard to believe

hopeful said:
I highly doubt that the company elected the split date based on a new hire class date that will effect 15-20 pilots. A few thousand options aren't going to be the determining factor when a million shares are on the line.

Stick your tongue out and look at it in the mirror, Looks pretty silly after drinking all the Blue-Aid.



Flew with David on the jumpseat just last week and this was his concern about a split before the last pilot class of the year was onboard. I understand if you cannot believe this, the jetBlue culture is something rare in todays buisness world.
 
Eagleflip said:
The stock split includes all those who own stock as of Nov 10th, and takes effect on Nov 20th.

Good luck in training guys/gals!

And Skirt....tough to work out when you're in the Doral Ale House, eh?...:D


That's great news Eagleflip! Thanks.

Counselair:D
 
Eagleflip said:


Good luck in training guys/gals!

And Skirt....tough to work out when you're in the Doral Ale House, eh?...:D

Actually those beers provide a great bicep curl workout!

Skirt
 
No one deserves more to be here than you Skirt... Good luck in MIA and congratulations!!! (formerly Blue Bayou)
 
Glad you're here Skirt. Enjoy the warm weather down there. By the time you get to JFK, who knows, the snow could be falling. Crazy weather this year! I hope I was able to give you a little head start with the training. Have fun!

Stick-N
 
hopeful said:
I highly doubt that the company elected the split date based on a new hire class date that will effect 15-20 pilots. A few thousand options aren't going to be the determining factor when a million shares are on the line.

Stick your tongue out and look at it in the mirror, Looks pretty silly after drinking all the Blue-Aid.

I guess hopeful is doubtful. Too bad. In talking to our VP of People, I learned that our management does not want to have a class in any particular year not get the chance at a split that other classes of the same year got. I.e. they want anyone hired in 2003 to have their options secured and their strike price BEFORE any splits. SURPRISE 15 or 20 pilots are indeed important enough to wait on for a split.

But what do I know being another one of those silly silly blue aid drinkers with a blue tongue.

Another post mentioned a split meaning nothing of the value. I don't think that anyone said that it did. HOWEVER. Would you rather have your original amount of shares go up a buck or have that original amount be 3 to 4 times more shares going up a buck or two. I prefer the latter.

Just think, the guy that owns 6000 shares makes $6000 bucks before taxes commisions etc with every dollar increase in stock price. How bout if you owned 100,000 shares. Elementary math I know, but I think that is how Southwest folks made the majority of their money.

Oh yea, I don't want to be left out...

WELCOME SKIRT!!!!!!
 
Thank you to all who have welcomed me to blue-koolaid land. Now I am getting embarrassed!

For all those skeptics out there, I will tell you that this place is for real. I've been at JetBlue for all of two weeks, and I feel I know more about where this airline is headed, what the vision and values are, and have more faith in both, than I did at my previous airline in 13 years.

While it was initially very tough to walk away from the left seat of a major airline, to start over at the bottom of JetBlue, I have no second thoughts or doubts....and no, the blue koolaid is not spiked.

Job satisfaction in any industry is related as much (or sometimes more) to respect, trust and a sense that you are valued, as it is to the paycheck. Don't get me wrong, going from 12th year captain pay to 1st year F/O pay hurts, but it is temporary. However, the respect and trust (from the top to the bottom and everywhere in between) here are instantaneous and a thousand fold compared to where I was. I feel I can follow the leadership here without wondering where we are going all the time. They are smart, very smart, but they also care very, very much. It is a rare combination, at any company, especially an airline. I also know that the leadership cares about the job satisfaction, welfare, livelihood and job security of all the crewmembers whether they are a junior F/O, janitor, ramper, or sit in the executive suite. To me that makes it worth the jump, as life is more than a W2. No secret executive bonuses, KERP plans, trust funds or fancy executive perks here, just good honest people treating everyone right. There is a definite sense that we are all in this together, and I like that.

Certainly not the case where I came from. While I never personally was "mistreated" by management or anyone else (in fact just the opposite), it is more of a system-wide culture that is the problem, with the poor customer getting stuck in the middle all the time. That kind of culture does not make good business.

As far as pay is concerned, when I look back after I retire will I say it was worth it? Who knows. If I could predict the value of JetBlue stock 19 years from now, or which airlines will still be around then, I wouldn't be a pilot, I would be a Wall Street guru. Instead, I just have to go with my gut and my values, and that is what brought me to JetBlue (along with a friendly recruitment team, and a bunch of great guys here at flightinfo).

Moral of the story, if you are thinking about making a move yourself, research the options and think about what kind of work environment is important to you. If you are furloughed, or about to be, it would seem to be a no brainer to apply here (no resignation of seniority required by JetBlue). If you are not furloughed, do you have golden handcuffs where you currently work? How bad are you willing to be treated as a group? Do you care if you are just a widget, or a warm body in a seat? Do you think your senior management cares? Does your airline have a vision and business plan? When do you walk away and say enough is enough? Don't get me wrong, JetBlue isn't nirvana for everyone. There is an airline out there that matches every personality and pilot style. I count my lucky stars that I found the one that fits me well.

In any case, no matter how it plays out in the long run here, there will be one less furlough for someone else at my former airline, and all the guys on the bottom half of the list move up one number. Not a bad deal.

Skirt
 
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Dude,

Sounds like your talking about SWA! Great to hear that you're happy. I know the feeling :)

Did you leave US Airways? If no, where did you come from before JBLU?

SWA/FO
 
No dude

Unless you were using the colloquial, Skirt is a lady (in the true sense of the word).
 
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