Jetblue Voodoo Economics

[JetFumes]

Can someone please enlighten me how JetBlue loses money yet goes from 700 million in cash to 774 million? Was it from airplane sales, "special accounting", deferred aircraft orders, or what? Did they discuss it in the pocket session?

 

[BluDevAv8r]

Can someone please enlighten me how JetBlue loses money yet goes from 700 million in cash to 774 million? Was it from airplane sales, "special accounting", deferred aircraft orders, or what? Did they discuss it in the pocket session?

I'm not sure where you see cash going from 770 million to 774 million. I'm looking at the 10Q for the third quarter of 2007, which can be found at http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-sec

Don't confuse "cash and investment securities" with just cash. Also, don't confuse the cash flow statement with the income statement. A company can lose money on the income statement and still be cash flow positive. The converse of that statement is true as well. For example, you could own a business that lost $100,000 but then you sold off the building that the business operated in for $200,000 (and subsequently leased it back from the new owner) and presto, you've "lost" money on paper but you have increased your cash position at the same time.

-Neal

 

[~~~^~~~]

Also, ticket sales are cash collected now for operating expenses that are yet to occur.

 

[lowecur]

Can someone please enlighten me how JetBlue loses money yet goes from 700 million in cash to 774 million? Was it from airplane sales, "special accounting", deferred aircraft orders, or what? Did they discuss it in the pocket session?

Don't fret the small stuff. Jetblue other than SWA is one of the few that actually report in GAAP standards. You want manipulation, take a look at the Midwest numbers. I also believe DL is using their non GAAP standards to pump up their exit. Cash flow from operations is the likely catalyst, along with deferred payments.

Be more concerned with the stock price. Jetblue should take a big hit thru the next quarter. The stock is selling at over 30 times projected earnings, and needs to get down below 20 to reflect the coming slowdown in the economy IMHO. If the stock drops another 20%, look for a private equity buyout with George Soros leading the way. Neeleman should be relegated to a figurehead as he is no longer a visionary but a reactionary apologist.

imp:​

 

[GuppyPuppy]

Don't fret the small stuff. Jetblue other than SWA is one of the few that actually report in GAAP standards. You want manipulation, take a look at the Midwest numbers. I also believe DL is using their non GAAP standards to pump up their exit. Cash flow from operations is the likely catalyst, along with deferred payments.

Be more concerned with the stock price. Jetblue should take a big hit thru the next quarter. The stock is selling at over 30 times projected earnings, and needs to get down below 20 to reflect the coming slowdown in the economy IMHO. If the stock drops another 20%, look for a private equity buyout with George Soros leading the way. Neeleman should be relegated to a figurehead as he is no longer a visionary but a reactionary apologist.

imp:​

I couldn't have said it better myself. This guy should check with a lawyer before he ever opens his mouth in public or to his employees.

GP

 

[NuGuy]

If I'm a business and the end of the quarter is comming up, and I do a cash advance on my credit cards, my "cash" increases. Doesn't say anything about the total picture.

Nu