JetBlue, You’re On Notice

OK, I’m making an official announcement:
JetBlue (JBLU), you’re on notice.
You got that? You’re on frickin notice pal.
After today’s close, the stock will split 3-for-2 for the third time in three years! Yet the stock has done jack. Um, aren’t splits for stocks that have gone (what’s the word)…up?
Sorry JetBlue, this just can’t be allowed. I’m writing a letter to someone.
I don’t get why they’re splitting so much. At least do us the favor of doing something first. Like make a lot of money. It’s as if they’re trying to make their investors feel richer via a press release. “Hey, we have more crap at a crappier price! BFF!”
Since the last 3-for-2 split, the stock is down about 33%. So the market kinda did its own split. JBLU is basically where it was when it went public three-and-a-half years ago. If you remember, this was the fad stock of Oh Three.
Yes, I know. I’m beginning to sound like Napoleon Dynamite (freakin’ idiot!) but this could only happen on Planet Wall Street. This is why America thinks we’re insane people who have all gone crazy. It’s a bad sign when management pays more attention to the share price than to its business. Just worry about business, and the stock will follow. It ain’t magic.
Stock splits do nothing for a stock. You’re no poorer or richer due to a split. It’s that simple. Companies say they split to increase liquidity. Ok, fine. You can do that by a 4-for-1 split like every decade or so. Not one a year.
If JetBlue was going to do three 3-for-2’s, why didn’t they just go public at a lower price? It’s not like investment bankers have spines. But this makes no sense. They’re not fooling anyone. You hear me JetBlue, you’re on notice!
If you do one more split, you’re no longer on notice. Then…you’ll be dead to me.
You hear me, JetBlue! Dead!!
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Posted by on December 23rd, 2005 at 4:40 am


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