HEY, JetBlue pilots, Why are ALL the insiders Selling their stock!

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11-10-2005, 05:59 AM

AA777-ER

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HEY, JetBlue pilots, Why are ALL the insiders Selling their stock!

Airline Industry Select a New Industry

1-36 of 36 companies. Data as of 11/8/2005

Ticker Name Institutional Net Shrs Purchased Net Insider Trades Short Interest Ratio
MktCap Weighted Average 7.651 -6 4.11

NWACQ Northwest Airlines Corporation 5.879 -106 8.08
XJT ExpressJet Holdings, Inc. 4.536 -90 6.64

JBLU JetBlue Airways Corporation 1.253 -88 10.64

RJET Republic Airways Holdings Inc. 2.443 -20 5.20
LUV Southwest Airlines Co. 28.414 -9 3.52
AAI AirTran Holdings, Inc. 5.217 -8 6.80
ALK Alaska Air Group, Inc. .492 -7 9.70
FRNT Frontier Airlines, Inc. .992 -6 7.41
CAL Continental Airlines, Inc. 12.230 -5 4.80
MESA Mesa Air Group, Inc. .323 -2 6.47
AMR AMR Corporation 12.084 -1 7.93
CEA China Eastern Airlines (ADR) .016 0 1.71
AAWW Atlas Air Worldwide Holdings, Inc. .820 0 NA
ZNH China Southern Airlines Limited (ADR) -.004 0 3.00
LFL Lan Airlines S.A. (ADR) -.020 0 1.54
MAIR MAIR Holdings, Inc. -.209 0 12.54
AKH Air France - KLM (ADR) .790 0 5.86
GOL GOL Linhas Aereas Inteligentes SA (ADR) 6.893 0 1.05
DLAKY Deutsche Lufthansa AG (ADR) .080 0 NA
RYAAY Ryanair Holdings plc (ADR) -.166 0 2.68
VGDAQ Vanguard Airlines .000 0 NA
FLYIQ FLYi, Inc. -11.346 0 1.58
ATAHQ ATA Holdings Corp. .000 0 4.15
UALAQ UAL Corporation -.603 0 12.11
SKYW SkyWest, Inc. 2.846 0 5.22
KLMR KLM Royal Dutch Airlines (USA) .000 0 .42
GLUX Great Lakes Aviation, Ltd. -.001 0 .00
MEH Midwest Air Group, Inc. -1.470 0 4.65
BAB British Airways plc (ADR) .068 0 3.25
DALRQ Delta Air Lines, Inc. -3.515 0 1.87
LCC US Airways Group, Inc. -1.097 1 3.91
PNCL Pinnacle Airlines Corp. 1.050 1 2.93
HA Hawaiian Holdings, Inc. 6.844 2 .60
WPACQ Western Pacific Airlines NA NA 6.74
MDWYQ Midway Airlines Corp. NA NA NA
AWCR America West Holdings Corporation

11-10-2005, 08:05 AM

Meworry?

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Perhaps because it is worth something, unlike most other airline stock? Except for Southwest, there is not much to sell, is there? Actually, the real reason is that Jetblue Execs have salaries way below the average salaries for the industry. CEO makes only $300,000/year, and no one makes more than he does. So, they supplement their salary with regularly scheduled sales of stock, so they can afford those big houses in Westchester and Connecticut. These sales are prearranged insider deals, and they go as scheduled no matter what the stock price is, or forcasted to be. Neeleman still holds shares worth hundreds of millions, as does our primary financier, George Soros. While they have cashed out a small percentage (which still equals millions), I think they believe the stock is worth holding on to in large amounts. Time will tell.

How are things at American? Stock there is doing pretty well this year.

Last edited by Meworry?; 11-10-2005 at 12:39 PM.

11-10-2005, 08:39 AM

banger

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Quote:

Originally Posted by Meworry?

All true. This pre-programed selling has been going on for 3 years now. They are probably sad they signed up to do it because the stock had been around $45 when they signed up to sell. Now I think they wished they were holding it.

11-11-2005, 08:29 AM

bluechunks

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Joined APC: Sep 2005

Position: right here

Posts: 95

Quote:

Originally Posted by AA777-ER

HEY, JetBlue pilots, Why are ALL the insiders Selling their stock!

Hmmm…probably for the same reason that many AA pilots will exercise their AMR stock options (and sell) now that the market price of AMR is 300% above the strike price.

Taking the money and running is a universal market concept.

The more interesting question is this: how many folks in JetBlue management are participating in the JetBlue ESPP (CSPP) and holding onto the stock??? Not many, I bet with JetBlue’s inflated market cap of $2B and negative cash flow and negative operating results. (Note: this is not a reflection on the quality of JetBlue's management, employees, or product; but rather a financial analysis.)

Last edited by bluechunks; 11-11-2005 at 09:06 AM.

11-11-2005, 10:30 AM

jetblue320

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Joined APC: Apr 2005

Position: A320 Capt

Posts: 21

Quote:

Originally Posted by Meworry?

Perhaps because it is worth something, unlike most other airline stock? Except for Southwest, there is not much to sell, is there? Actually, the real reason is that Jetblue Execs have salaries way below the average salaries for the industry. CEO makes only $300,000/year, and no one makes more than he does. So, they supplement their salary with regularly scheduled sales of stock, so they can afford those big houses in Westchester and Connecticut. These sales are prearranged insider deals, and they go as scheduled no matter what the stock price is, or forcasted to be. Neeleman still holds shares worth hundreds of millions, as does our primary financier, George Soros. While they have cashed out a small percentage (which still equals millions), I think they believe the stock is worth holding on to in large amounts. Time will tell.
How are things at American? Stock there is doing pretty well this year.

All true except DN's salary is $200k and he donates ALL of that to the jetBlue Crew Crisis Fund every year.

Just FYI

11-11-2005, 08:26 PM

Meworry?

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Quote:

Originally Posted by bluechunks

Jetblue's financials are publicly available. Operating cash flow is, and has been, squarely in the black. Total cash flow for the 9 months ending Sep 05 is also positive. This is remarkable, considering the HUGE capital expenditures that the company has made, which have even outpaced our financing cash flow. Operating cash flow has been enough to keep us in the black (146.5 million operating cash flow last quarter). Operating results are also positive, although this qtr may not be, but cash flow will still be positive, I'd wager.

11-11-2005, 08:28 PM

Meworry?

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Quote:

Originally Posted by jetblue320

All true except DN's salary is $200k and he donates ALL of that to the jetBlue Crew Crisis Fund every year.

Just FYI

I'll raise you 70k, and call it 270K. Yep, he sure does, cause he doesn't need it. He cashed in 7 million in stock last December, which he deserves, IMHO.

11-12-2005, 07:03 AM

bluechunks

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Joined APC: Sep 2005

Position: right here

Posts: 95

Quote:

Originally Posted by Meworry?

Operating cash flow is, and has been, squarely in the black. [edit] Operating cash flow has been enough to keep us in the black (146.5 million operating cash flow last quarter). Operating results are also positive, although this qtr may not be, but cash flow will still be positive, I'd wager.

I'll take that wager and raise you a soda.

Actually, you may wish to review those financial statements more closely.

http://finance.yahoo.com/q/cf?s=JBLU

We had a negative ‘Total Cash Flow From Operating Activities’ for the 3rd quarter of this year as well as a negative ‘Change In Cash and Cash Equivalents.’

Our total ‘Change In Cash and Cash Equivalents’ is only positive on paper for the prior few quarters because we have BORROWED enormous sums of money each quarter. Hint: look at the ‘Net Borrowings’ row. We are spending far more than we earn; and while this is often true for any company during a growth period, it is also a challenge to sustain when the profits are diminishing.

Note that the only reason we squeaked out a net operating profit for the 3rd quarter (normally our best) is because we were able to lower our tax expense based upon a forecast of a 4th quarter loss.

http://finance.yahoo.com/q/is?s=JBLU

We have enormous challenges facing us and while I’m trying not to be a ‘Chicken Little” I have also been in this position before so I am also trying to be realistic.

Last edited by bluechunks; 11-12-2005 at 07:06 AM.