Bluedriver

Awesome! I laughed when I made up the word, glad it was put to good use.

todd1200

Crazy thing about our stock price is that our book value per share is about $10. So if you liquidated our assets, there should be over $10 for each shareholder. On paper, you could double the money of every shareholder by shutting us down and selling the assets. (It should go without saying that this is a bad idea that I’m not advocating).

Bluedriver

That really boils down to the anti-FOMO. There just aren't many buyers that think the timing is good right now. But there are sellers. Doesn't mean they don't see future returns, just means they see DISTANT future returns. So they will come back and buy in the future.

Just as high flying stocks have prices/multiples that aren't justified by the fundamentals, company's that are facing a more difficult few years get beat down more than the fundamentals would otherwise suggest.

Tranquility

Which is exactly why I started a position with JBLU…. The market overall is oversold, but when stocks are trading at fractions of their book value, or better yet, tangible book value, it’s time to hold your nose and buy.

I may dollar cost average down if it hits $4.20. Something about that number makes me happy…. 😁

I was inverted

At this point you gotta worry about ch11 with demand easing, having to borrow billions with large interest rates, fuel costs still rising, labor still creeping up, merging two dissimilar airlines that are both losing money, etc. I think there’s a reason it’s trading this low, and imo it’s because that risk is growing by the day.

Bluedriver

Those are also all valid points of concern.

RemoveB4flght

While the current snapshot isn’t exactly rosy, it’s also not as bearish as it looks.

Interest rate have risen, but anything looks bad coming off once in a generation lows, and prime still hovers around early 2000’s levels. B6 put the financing in place a while ago, and it would be interesting to find out when/if those rates were locked in at that time or floating.

https://www.jpmorganchase.com/about/...cal-prime-rate

Jet fuel has been more volatile in the past couple decades, but supply shortages which pushed prices up the last couple years have also come back down significantly.

​​​​​​https://transportgeography.org/conte...t-fuel-prices/

While still up significantly from lockdown days, domestic demand has softened year over year, and falling fares have spurred interest in foreign travel. Over capacity and lower ticket prices are a market challenge for low cost carriers, but it doesn’t sound like the death rattle that signals bankruptcy. Nor does several quarters in the red, however it does make a good bullet point for the upcoming merger trial that economies of scale from legacy carriers are a latent threat to domestic majors. What would be a greater detriment to consumers, a nine percent market share or the potential loss of one or both players from the industry.

As far as the share price, with both companies held largely by institutional investors, there is still inherent risk of the merger outcome. While small investors may see an opportunity to buy in cheap, the price pushed higher from a buying spree only to see a 30% drop on the news of a negative merger outcome isn't the type of move that gets fund managers fat bonuses.

As the Zen master once said: “We’ll see….”

MainlineFlyer

"Book value" is really more of an accounting gimmick than an actaul value. Should we need to liqudate there is zero guarantee that our tangibles would sell for "book value". My understanding is that a better "true" liquidation value is closer to half "book value" when pricing a stock.

Mach10

Company contributions by default are traditional 401k, meaning non-Roth. However, you can do an in-plan conversion prior to moving them over to Schwab, pay the taxes on them, and they become Roth for future withdrawal. Definitely a boon, and something I recommend everyone take advantage of.

Multiple conversions may be done throughout the year, but of course it will have tax implications come April of the following year. The sooner you convert, the less likely you are to incur tax liability.

(Dollars cannot be converted once they are in Schwab, only in the Empower core account)

Bluedriver

From a BlueDude post on the previous page:

"You can't make company contributions Roth directly as yet but you can do it indirectly already. Just make an in-Plan Roth conversion of company contributions. You'll have to pay taxes on everything you convert, from an outside source (you can't use Plan funds to pay the taxes, and it would be counterproductive if you could). This is no different than making company contributions Roth, as you'd be liable for taxes on those also."

His post sounds as if you'd pay taxes on the entire conversion, not just the gain. Which makes sense from a tax perspective. Are you sure you're doing it correctly?