http://gmcstockpicks.com Proprietary algorithms at work. Click here for our free newsletter: http://goo.gl/APYNVJ . This is a review of an undervalued stock in the Transportation Sector and Regional Airline Industry. Low priced stocks to buy. We do not look at penny stocks. Stock options are a safer bet than penny stocks.
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Below is the transcript. Requires more editiing beying the 6 minute mark.
0:01
Hi Everyone. Mathis Conner here with Conner Management Group and this week we're going to look at
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the best transportation stock to buy right now. Today is Thursday, January 16, 2014. Alright from the slide
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which you can tell is that the industry is regional airline and the we see this
0:25
name is having the upside potential of 18.8% From the next slide you can
0:33
see that the name is not all that unfamiliar its JetBlue Airways. The ticker symbol is JBLU.
0:42
Once again we see this has an upside potential of 18.8% over the next 12 months. Now for the business summary. of JetBlue
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Airways Corporation. a passenger airline company provides air transportation services. The company
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also provides in-flight entertainment for commercial aircraft, including live
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in seat settling television, and a number of other a communication related services. Another
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description I have is JetBlue Airways is a passenger airline that primarily uses a point-to-point
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route system as opposed to the more common hub and spoke model. They serve about 75 destinations
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in 23 states, plus Puerto Rico, Mexico, the Caribbean and Latin America. Their focus is on underserved markets
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and metropolitan areas with high average fares. Major bases are New York JFK and
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Boston Logan. So that paints a little more color on their business operations. Their website is
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www.JetBlue, J-E-T-B-L-U-E, dot com. The company's headquarters is in Queens New York. They were
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founded in 1998. The number employees they have is 12,124. Once again, their ticker symbols JBLU.
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The super sector is transportation. The sector itself is services and the industry that JetBlue
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falls under is of course our regional airlines. JetBlue's revenues over the last 12 months totaled $5.27 billion
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The net income was $122 million. That sounds a little small against the size revenue. And cash from
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operations however is at $722 million. The market capitalization for JetBlue stands at $2.54
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billion. On to their products and services page. We have some pictures from the JetBlue
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website. We've got the logo JetBlue airlines. We have a picture of a jet in front of
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a JetBlue hanger. We've got a map showing their major destinations. Its clear that their
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their primary hub is out of New York. It looks like they have secondary hubs out of Boston, Fort Lauderdale,
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Long Beach California as well as Oakland California. We also have a picture of a JetBlue airline taking
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off. A picture out of a window overlooking an engine and some snow covered mountains.
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So thats what we have on their products and services page. Just pictures of the jets and their routes.
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Some of JetBlue's key metrics. And once again annual revenues of $5.27 billion, net income
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of $122 million and cash from operations of 722 million. Their operating margins were fairly flat.
4:07
For 2012, operating margins and 12.7% and for and 2013 are tracking to be 13%, just slightly
4:16
better. On to their valuation metrics. JetBlue's trailing P/E ratio right now is 23.4 and its
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forward P/E ratios is at 13.4. So some healthy expansion of earnings is expected.
4:35
The PEG ratio is 0.8. Anything below one is considered to be somewhat of a bargain.
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The prices sales ratio is 0.5. That is also low but I also know it's not unusual for a company
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transportation sector to have low price to sales ratios. The price to book ratio is reasonable at 1.3. And enterprise
5:02
value to ebitda is at 6.9. So overall we we have what I would say are some some low
5:12
valuation metrics. The 23.4 P/E ratio maybe you could argue is a bit rich now but it is expected to
5:21
come down a bit. The other valuation metrics which we just talked about are definitely
5:28
in that on the low side range. This is the kind of thing that will make you wonder if this is a
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good value stock I should take a closer look at. The recent closing price of JetBlue
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yesterday it was $8.98, the 52-week low was $5.70 and it 52-week high was $9.22.
5:52
so right now JetBlue that is trading closer to 62 five slowness or short and the 20 day
5:59
moving average for JetBlue stands at $8.71 the 50 day moving average $8.55 and 200 day
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moving average is $7.08 so that relationship tells you) that you had stock prices and somewhat
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steady increase the average volume for JetBlue daily daily trading volume set 6.4 million
6:29
shares of day so that the stock is definitely traded this is the data is at 0.6 so it is
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less local than the box. Market in general and dividend yield is at 0% and the average
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dividend payout ratio zero cents of JetBlue doesn't pay dividends onto
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were taken look at JetBlue's truck over the past year and what we see is as back around
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the end of February the stock price was just a little over six dollars around six dollars
7:10
and then meandered jump into seven a month later and then down to six dollars in July
7:19
and that from July stock increased somewhat somewhat steadily up until around see mid-November
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rate jumped up to almost 9 dollars.9 dollars and then you pull back maybe $.50 and early
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December and you know right now that $8.90 nine dollars so stock it has increased over
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the past year to come to our assessment about financial statement quality JetBlue's I'll
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have to admit their financial statement quality is fair community that I tend to like to choose
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stock that had that have pretty solid financial statements in most cases some interesting
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circumstances but you airlines do not know that the strongest statements in general and
8:27
and and once again this is the strongest transportation stock that which we see right now so although
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the vast statements are fair and you know in general lot airlines do have great financial
8:42
statements to begin with so you know Raleigh you might consider being in the middle attack
8:48
works with fair finance statements that operating margins as we mentioned earlier is is flat
8:55
80 overall agreement amount that they have it's doing five years stands at $2.2 billion
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this sales of the past five years and increase an average of 3.5% per year thereafter earnings-per-share
9:15
are expected to increase over the next year you know. Their fuel expenses have been coming
9:25
down the maintenance costs have been coming down and they continue to have focus on expanding
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into Sunday current markets and the date masonry senescence of doing cochair of codesharing
9:46
programs with South Africa Asia the united Arab emirates so the company has some some
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love nice upside potential land which was related to part of the Outlook on their earnings
10:01
which which makes this an attractive by it so you know that are just some article Russell/St.
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Paul receives there to bring marked trend is flat there are some some positive activities
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going on inside the company the price pattern trend misusing increasing segment would imagine
10:24
the start that JetBlue and its potentials getting out there and you overall are market
10:29
outlook is still scares me to the past week were started season change the armor love
10:37
overvalued stocks but you get JetBlue weekly BCS is having some nice outside the next year
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the recent closing prices much right now is and yesterday's close 8000 $.98 and are our
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model live has a 12 month price target for JetBlue and $10.67 so that provides it up
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a 12 month upside potential of 18.8% and the next JetBlue deathly worth taking a look at
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and some you might want to consider having to portfolio so vessel we have this week this
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JetBlue went on to our last line with you haven't already please sign up for our weekly
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