JetBlue Airways drops to one-month low

STOCKS

JetBlue Airways (JBLU.O) traded at its 21-day low of US$4.11. The stock price dropped 21.0c (or 4.8%) to close at US$4.12. Compared with the Dow Jones Industrials index, which fell 389.2 points (or 3.2%) on the day, this was a relative price change of -1.6%.

TECHNICAL ANALYSIS

Price Change % 1-day 1-month 1-year JBLU -4.85% 3% -42.3% Airlines -1.1% 4.19% -32.65% DJIA -3.2% 6.1% 3.83%

Downtrend

Support: the support price is hovering at the US$3.90 level. Volume traded at the support price zone was 1.4 times average during the two occasions when the support price was breached. In the last month the lowest price was US$3.90 on Oct 10. The second lowest was US$3.97 on Oct 11.

Resistance: previous rallies have been met with firm resistance at US$4.74. Volume was 1.4 times average during the four occasions when the resistance price was breached in the last one month. In the last one month the highest was at US$4.74 on Oct 18, the second highest at US$4.70 on Oct 27. The third advance halted at US$4.66 on Oct 28, the 4th at US$4.66 on Oct 17

Trailing month: in the last 21 trading sessions there has been a net decline of 8.85%; the stock has retreated 14 times and the biggest one day decline was 6.7% on Oct 19.

PRICE VOLUME DYNAMICS

Volatility: the stock traded between an intraday high of US$4.28 and a one-month low of US$4.11, suggesting a trading opportunity between peaks and troughs. The average daily volatility of 3.9% places the stock in the 1st quartile in the market meaning it is highly volatile.

Volume: there were 3,868,310 shares worth US$15.9 million traded. The volume was 0.7 times average trading of 2,728,819 shares.

% Discount to high: the last price is at a discount of 45.8% to the 12-month high of US$7.60 a year ago on 09 Nov, 2010.

% Premium to low: the last price is at a premium of 18.0% to the 12-month low of US$3.49.

Volume weighted price (VWP): the price is at a discount of 6.3% to the 1-month volume weighted average price of US$4.398, which may appeal as a value proposition.

Beta: The Beta of this stock is 1.38. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

Standard Deviation (SD): SD is a statistical measure of deviation from the mean. The SD of 2.8% gives it a percentile rank of 70 meaning that 70% of stocks in the global market are less volatile than this stock.

OPEN INTEREST TREND AND INTERPRETATION

Open interest hit an eight-day high.

Same day trend: open interest advanced for a seventh straight day. Open interest strengthened 0.2% from 87,320 to 87,472. Combined with the price falling 4.8% this suggests the market is weak.

Trailing one week trend: Open interest rose 0.8% from 86,753 a week ago while the stock plunged 7.4% from US$4.29 a week ago. Combined with the falling price this also suggests the market is weak.

Trailing one month trend: open interest soared 54.4% from 56,658 a month ago while the stock added 3.0% from US$3.87 a month ago. Combined with the rising price this suggests the market is strong.

Open interest as % of issued capital: 8,747,200 shares, representing 3.0% of the issued capital.

[ranked 591 out of 1654 stocks in descending order]

Put:call ratio: open interest contracts on exchange traded options included 31,341 put contracts and 56,131 call contracts.

The put:call ratio was 0.6, up 0.2% for the day, down 0.4% in the past week and down 60.2% in the past month.

Top two traded call options [volume of contracts in brackets; 1 contract is 100 shares]

Exercise US$5.0; Expires Jan 21: 18.0c down 28.0% [50]

Exercise US$3.0; Expires Dec 17: US$1.16 down 10.8% [5]

Top traded put options [volume of contracts in brackets; 1 contract is 100 shares]

Exercise US$4.0; Expires Dec 17: 25.0c up 25.0% [45]

Access comprehensive Stock Research on http://www.buysellsignals.com/202138932

PRICE PERFORMANCE RANK IN SECTORS

The stock is in 2 sectors.

The following index and sectors fell setting the trend for its fall of 4.8%:

Dow Jones Industrials index of 30 stocks traded today, which was down 389.2 points or 3.2% to 11,780.9;

The index of Top 5000 stocks by MCap, which was down 128.2 points or 1.5% to 8,342.5;

Airlines sector of 34 stocks traded today, which was down 66.2 points or 1.1% to 5,959.6

Percentile Rank 1-day 1-month 6-months JBLU 13 49 18 Airlines 45 56 32 DJIA 22 65 67

RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTAL ANALYSIS

The stock meets the following value criterion set by Benjamin Graham:

-"An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 7.9% is 3.65 times the triple-A bond yield of 2.2%.

-"A P/E ratio down to less than four-tenth of the highest average P/E ratio the stock attained in the most recent five years"; the P/E of 12.6 is 0.33 times the highest average P/E of 38.5 reached on May 31, 2007.

The stock has a score of 6 out of 9 set by Joseph Piotroski [pass mark >=5 ]:

Positive net income; Positive operating cashflow; Return on assets improvement [from 0.9% to 1.5%]; Good quality of earnings [operating cashflow exceeds net income]; Improvement in long-term debt to total assets from 0.45 to 0.43; Improvement in asset turnover [growth in revenue of 14.79% exceeded growth in assets of 0.67%].

Other Bullish Signals:

- Price/Sales of 0.31 versus sector average of 0.4 and market average of 1.0. We estimate the shares are trading at a current year Price/Sales of 0.3 and a forward year Price/Sales of 0.2.

- The Price to Book of 0.7 lower than average of 1.9 for the Airlines sector and 2.0 in the global market of top 5000 stocks by MCap. We estimate the shares are trading at a current year Price to Book of 0.6 and a forward year Price to Book of 0.6.

- Return on Capital Employed of 6.2% versus sector average of 6.0% and market average of 11.0%.

- The P/E of 12.6 multiplied by the P/NTA of 0.7 is 9.3. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

- The company is cash rich with Cash to Market Capitalisation at 38.0%.

Bearish Signals:

- Price/Earnings of 12.6 versus sector average of 12.3 and market average of 13.6.

- Return on Equity of 5.9% versus sector average of 9.6% and market average of 10.5%.

- Total Liabilities/ EBITDA of 8.3 is more than or equal to 5, this compares unfavourably with Joseph Piotroski benchmark of 5.

- Price/Earnings/Growth of 0.3 (based on the year-on-year growth in trailing 12 months EPS of 47.6%) versus sector average of 0.1 and market average of 0.2.

- Return on Assets of 1.5% versus sector average of 2.3% and market average of 1.8%.

RELATIVE VALUATION INDICATORS [RVI] TECHNICAL ANALYSIS

Bullish Signals:

- The price added 3.0% in the last month.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) minus the 26-day EMA is positive suggesting a bullish signal.

- the price is below the lower Bollinger band of US$4.144.

Bearish Signals:

- The price plunged 7.4% in the last week.

- Compared with the Dow Jones Industrials index which fell 0.5% for the week, this represented a relative price decrease of 7.0% for the week.

- In the global market of top 5000 stocks by MCap, the stock has a 6-month relative strength of 18 indicating it is trailing 82.0% of its global peers.

- The price to 50-day EMAP ratio is 0.9, a bearish indicator. In the past 200 days this ratio has been under 0.9 18 times suggesting further downside. The 50-day EMAP has decreased to US$4.375. A decrease is another bearish indicator.

- In the last three months the stock has hit a new 52-week low twice.

- In the past 200 days this ratio has been under 0.78 45 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of US$4.264 is lower than the 200-day MAP of US$5.251, a bearish indicator. The 200-day MAP has decreased to US$5.251. A decrease is another bearish indicator.

- The price to 200-day MAP ratio is 0.78, a bearish indicator.

Breakdown:

- The stock traded at a one-month low of US$4.11 today.

- In the last three months the stock has hit a new 52-week low twice.

- The bears are maintaining control with price open, high, low and close being below yesterday's levels.

SHAREHOLER RETURNS

Trailing one week: the stock fell three times (60% of the time) and rose twice (40% of the time). The volume was 0.7 times average trading of 13,644,095 shares. The value of US$1,000 invested a week ago is US$958 [vs USD995 for the Dow Jones Industrials index], for a capital loss of US$42 (or loss of 4.2%).

Trailing one month: the stock rose twelve times (52% of the time) and fell eleven times (48% of the time). The volume was 0.7 times average trading of 60,034,018 shares. The value of US$1,000 invested a month ago is US$1,030 [vs USD1,064 for the Dow Jones Industrials index], for a capital gain of US$30 (or rise of 3.0%).

Trailing one year: the value of US$1,000 invested one year ago is US$577 [vs USD1,067 for the Dow Jones Industrials index], for a capital loss of US$423. The total return to shareholders for 1 year is -42.3%.

Trailing five years: the value of US$1,000 invested five years ago is US$310, for a capital loss of US$690.

The present value of US$1000 invested at a previous date is shown below:

PV1000 1-week 1-month 1-year JBLU Stock 958 1,030 577 Airlines USD985 USD1,042 USD680 DJIA USD995 USD1,064 USD1,067

FINANCIALS

Quarterly Report released on May 12, 2011; year-on-year comparisons with previous corresponding period:

In the quarter to March 31, 2011 total revenue was up 16.3% to US$1 billion; net profit recovery to US$3 million.

Annual Report for the year ended December 31, 2010 (year-on-year comparisons with previous corresponding period)-

EPS of 31.0 U.S. cents.

Favourable Changes: total revenue up 13.8% to $US4.0b; net profit growth 59.0% to $US97.0m; interest cover up 23.5% to 1.9; total debt to net tangible assets down from 213.7% to 183.4%; total liabilities to EBITDA down 5.2% to 8.3. While this compares unfavourably with the Joseph Piotroski benchmark of <5, the trend is favourable; although the Total Liabilities to Operating Cash Flow ratio of 9.4 also compares unfavourably with the Joseph Piotroski benchmark of <4, it had improved by 8.3% from the previous year.; debt to equity down 14.5% to 1.8; total liabilities to total assets down 1.3% to 0.8; Net tangible assets per share up 1.2% to $US6.01; Retained earnings to total assets up 78.5% to 3.3%; EBIT to total assets up 12.2% to 5.2%; total revenue to total assets up 13.0% to 0.6.

Unfavourable Changes: EBIT Margin down 2.2% to 9.0%; current ratio down 6.0% to 1.2; Working capital to total assets down 27.5% to 4.2%.

Major Common Size Ratios: fixed assets to total assets down from 70.8% to 70.4%; total current assets to total assets down from 23.4% to 20.6%; other non-current assets to total assets up from 5.8% to 9.0%; short-term investments to total assets up from 3.7% to 7.5%; cash to total assets down from 13.7% to 7.1%; EBITDA to Sales down from 16.5% to 15.1%; EBIT to Sales down from 8.7% to 8.6%; depreciation to sales down from 6.6% to 5.6%; interest expenses to sales down from 5.7% to 4.6%; sales and marketing expenses to sales up from 4.3% to 4.5%.

MARKET SHARE

JetBlue Airways vs Airlines sector [Airlines sector Total in Brackets]

Revenue of US$4 billion[2.9% of aggregate sector revenue of US$137.9 billion; down from 2.9% in the previous year.]

EBIT of US$341 million [2.0% of aggregate sector EBIT of US$17.1 billion; down from 9.9% in the previous year.]

ISSUED CAPITAL

Based on 296,881,000 issued shares the market capitalisation is US$1.2 billion. It is the world's 30th largest Airlines company by market capitalisation.

ACTIVITIES

It is the world's 18th largest Airlines company by total revenue.

JetBlue Airways Corporation (JetBlue) is a passenger airline that provides customer service primarily on point-to-point routes. During the year ended December 31, 2008, the Company served 52 destinations in 19 states, Puerto Rico, and five countries in the Caribbean and Latin America, and operated over 600 flights a day with a fleet of 107 Airbus A320 aircraft and 35 EMBRAER 190 aircraft. Most of its flights have, as an origin or destination, one of its focus cities: Boston, Fort Lauderdale, Los Angeles/Long Beach, New York/JFK, or Orlando. During 2008, its operations primarily consisted of transporting passengers on its aircraft, with domestic United States operations, including Puerto Rico, accounting for 92.5% of its capacity. In January 2009, JetBlue began service to Bogota, Colombia. JetBlue's aircrafts are equipped with leather seats in a single class layout. The Airbus A320 aircraft, with 150 seats, has a wide cabin. The EMBRAER 190 aircraft has 100 seats.

TOP MANAGEMENT

The chief executive officer is David Barger, the chairman is Joel C. Peterson and the chief financial officer is Edward Barnes.

REPORTED BUYING AND SELLING

Reported Buying:

October 21: JetBlue Airways insider buys

JetBlue Airways (JBLU.O) insider Mcchrystal Stanley A bought 6,076 shares worth approximately US$34,997.8 on June 16, 2011. The last price was US$5.80.

October 21: JetBlue Airways insider buys

JetBlue Airways (JBLU.O) insider Bischof Jens bought 6,076 shares worth approximately US$34,997.8 on June 16, 2011. The last price was US$5.80.

October 21: JetBlue Airways insider buys

JetBlue Airways (JBLU.O) insider Bischof Jens bought 5,922 shares worth approximately US$34,999 on May 26, 2011. The last price was US$5.90.

October 21: JetBlue Airways insider buys

JetBlue Airways (JBLU.O) insider Boneparth Peter bought 6,076 shares worth approximately US$34,997.8 on June 16, 2011. The last price was US$5.80.

Reported Selling:

November 03: JetBlue Airways insider sells

JetBlue Airways (JBLU.O) insider Hnat James G sold 5,430 shares worth approximately US$23,349 on November 01, 2011. The selling price was USD4.36.

BUSINESS NEWS ROUND UP

The last 5 snippets are:

October 24: JetBlue Getaways 'Concierge on Call' Is At Your Service: Introducing Complimentary Concierge Program in Partnership with Mondial Assistance USA

NEW YORK, Oct. 24, 2011 /PRNewswire via COMTEX/ --JetBlue Getaways (Nasdaq: JBLU) today announces a partnership with Mondial Assistance USA, best known for its Access America(Registered) brand of travel insurance and assistance services, to provide round-the-clock complimentary JetBlue Concierge services to all customers purchasing a Getaways vacation package at www.jetblue.com/vacations.

October 11: JetBlue Airways Reports September Traffic

JetBlue Airways Corporation (NASDAQ: JBLU) reported its preliminary traffic results for September 2011. Traffic in September increased 7.6 percent from September 2010, on a capacity increase of 8.7 percent.Load factor for September 2011 was 79.8 percent, a decrease of 0.8 points from September 2010.

October 06: JetBlue Successfully Hosts Third Annual Swing for Good Golf Classic in New York

JetBlue expected to raise $350,000 at its third annual Swing for Good Golf Classic at Bethpage State Park benefitting KaBOOM! and DoSomething.org --NEW YORK, Oct. 6, 2011 /PRNewswire via COMTEX/ --New York's Hometown Airline(TM), JetBlue Airways (Nasdaq: JBLU), proudly hosted its annual Swing for Good Golf Classic at two Bethpage State Park Golf Courses.

September 28: Nominate Your Local Library to Win $10,000 in Books From JetBlue Airways

[News Story] NEW YORK, Sept. 28, 2011 /PRNewswire/ -- As children across the country return to school, JetBlue Airways (Nasdaq: JBLU) encourages readers to nominate their local library for a chance to win $10,000 in Random House Children's Books. Readers that nominate their local libraries will also be entered to win a family vacation to the amazing Atlantis Paradise Island Resort in Nassau Bahamas from JetBlue Getaways.(Logo: http://photos.prnewswire.com/prnh/20110404/NY76997LOGO )The airline's initiative is a part of Soar with Reading, a joint project launched this summer by JetBlue and PBS KIDS.

September 19: JetBlue Just Can't Wait! Puerto Rico's Largest Carrier Launches Inaugural Service From San Juan to St. Thomas and St. Croix Three Days Early

SAN JUAN, Puerto Rico, Sept. 19, 2011 /PRNewswire via COMTEX/ --JetBlue Airways (Nasdaq: JBLU), Puerto Rico's largest carrier, today announced that it will launch San Juan Luis Munoz Marin International Airport's (SJU) twice daily service to St. Thomas (STT) and daily service to St.

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