This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Don't Buy Those JetBlue Merger Rumors

The airline industry doesn't seem to like actual mergers all that much, but it obviously loves merger talk.

The latest theory to pop up involves JetBlue (JBLU - Get Report) and Delta (DAL - Get Report). To some, David Neeleman's move last week to step down as CEO portends a merger, the idea being that the company's founder didn't want to see his baby absorbed by another carrier.

It has a certain, limited logic. JetBlue has two valuable assets -- a strong position at New York's Kennedy Airport and new Airbus A320s. Delta is growing at Kennedy. For that matter, so is AMR's (AMR) American. And everybody needs newer airplanes.

Trying to figure out whether somebody might acquire JetBlue is fun -- as they say, it beats working. At the same time, there's no indication that JetBlue has any desire to be bought, or that anyone has any real desire to buy it.

When the merger question was raised during last month's earnings conference call, Neeleman said there have been "no conversations with a legacy carrier about acquiring the airline." He added that "I would reiterate that would not be something that we would want." Now Neeleman is out as CEO. Hmm.

Actually, several merger and buyout ideas have surfaced in recent weeks, some of which were floated by respected analysts.

Last month, Roger King of CreditSights suggested that Southwest (LUV - Get Report) would be a good takeout candidate. "A Southwest Airlines LBO is a no-brainer in the current financial market," he wrote in a research report.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.83 -27.26 -1.33%
NASDAQ 4,684.0540 -87.7090 -1.84%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs