Is JetBlue Ready to Take Off on Lower Oil?

JetBlue Airways Corp. (JBLU) is trying to put together a three day winning streak after a May 30 low that saw the stock hit $3.97 on news of a $175 million convertible debt offering which, now in hindsight, appears to have been a capitulation low.

The stock is up $.11, or 2.63%, to $4.27, in early afternoon trading Thursday, yet the rally is surprisingly muted given the percentage gains of its peers; AMR, Northwest and UAL. But with lower oil prices and the short interest up to 44.1 million shares, or 20% of the publicly trade float, the stock can have a more meaningful bounce.  Thursday’s comments from Lehman Brothers’ Garret Chase should ensure its continuation. Marketwatch notes that the analyst upgraded the entire airline industry, saying that “it’s time to start playing the upside potential in those with high survivor potential,” listing JetBlue as one of the companies to be a sector survivor.

Comments

[bri019]

"lower oil prices???" oil hit $133 yesterday and Continental just laid off 3000 people. I think things will get worse before they get better.