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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.  Like us on Facebook: https://www.facebook.com/gmconner14 Follow us on Twitter: https://twitter.com/gmcstockpicks Add us to your circles on Google Plus:  https://plus.google.com/u/0/+Gmcstockpicks/posts Subscribe to our podcast on iTunes:  https://itunes.apple.com/us/podcast/value-momentum-gmc-stock-picks/id737369520?mt=2 Listen and subscribe to our podcast on Stitcher Radio: http://www.stitcher.com/podcast/value-momentum-gmc-stock-picks?refid=stpr   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 0:07   the best transportation stock to buy right now. Today is Thursday, January 16, 2014. Alright from the slide 0:18   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 0:51   Airways Corporation. a passenger airline company provides air transportation services. The company 0:56   also provides in-flight entertainment for commercial aircraft, including live 1:01   in seat settling television, and a number of other a communication related services. Another 1:11   description I have is JetBlue Airways is a passenger airline that primarily uses a point-to-point 1:17   route system as opposed to the more common hub and spoke model. They serve about 75 destinations 1:25   in 23 states, plus Puerto Rico, Mexico, the Caribbean and Latin America. Their focus is on underserved markets 1:34   and metropolitan areas with high average fares. Major bases are New York JFK and 1:42   Boston Logan. So that paints a little more color on their business operations. Their website is 1:50   www.JetBlue, J-E-T-B-L-U-E, dot com. The company's headquarters is in Queens New York. They were 2:01   founded in 1998. The number employees they have is 12,124. Once again, their ticker symbols JBLU. 2:13   The super sector is transportation. The sector itself is services and the industry that JetBlue 2:22   falls under is of course our regional airlines. JetBlue's revenues over the last 12 months totaled $5.27 billion 2:31   The net income was $122 million. That sounds a little small against the size revenue. And cash from 2:40   operations however is at $722 million. The market capitalization for JetBlue stands at $2.54 2:49   billion. On to their products and services page. We have some pictures from the JetBlue 2:59   website. We've got the logo JetBlue airlines. We have a picture of a jet in front of 3:06   a JetBlue hanger. We've got a map showing their major destinations. Its clear that their 3:14   their primary hub is out of New York. It looks like they have secondary hubs out of Boston, Fort Lauderdale, 3:22   Long Beach California as well as Oakland California. We also have a picture of a JetBlue airline taking 3:30   off. A picture out of a window overlooking an engine and some snow covered mountains. 3:40   So thats what we have on their products and services page. Just pictures of the jets and their routes. 3:49   Some of JetBlue's key metrics. And once again annual revenues of $5.27 billion, net income 3:56   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 4:27   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. 4:44   The prices sales ratio is 0.5. That is also low but I also know it's not unusual for a company 4:53   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 5:34   good value stock I should take a closer look at. The recent closing price of JetBlue 5:40   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 6:09   moving average is $7.08 so that relationship tells you) that you had stock prices and somewhat 6:21   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 6:38   less local than the box. Market in general and dividend yield is at 0% and the average 6:46   dividend payout ratio zero cents of JetBlue doesn't pay dividends onto 6:51   were taken look at JetBlue's truck over the past year and what we see is as back around 7:02   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 7:30   rate jumped up to almost 9 dollars.9 dollars and then you pull back maybe $.50 and early 7:41   December and you know right now that $8.90 nine dollars so stock it has increased over 7:52   the past year to come to our assessment about financial statement quality JetBlue's I'll 8:02   have to admit their financial statement quality is fair community that I tend to like to choose 8:12   stock that had that have pretty solid financial statements in most cases some interesting 8:19   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 8:34   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 9:04   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 9:34   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 9:54   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. 10:09   Paul receives there to bring marked trend is flat there are some some positive activities 10:17   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 10:46   the recent closing prices much right now is and yesterday's close 8000 $.98 and are our 10:53   model live has a 12 month price target for JetBlue and $10.67 so that provides it up 11:03   a 12 month upside potential of 18.8% and the next JetBlue deathly worth taking a look at 11:13   and some you might want to consider having to portfolio so vessel we have this week this 11:20   JetBlue went on to our last line with you haven't already please sign up for our weekly 11:27   newsletter you can't get by going to www.GMCstockpicks.com and you be among the first to hear that the 11:36   beast comes a stock tips and alternate bar proprietary algorithm that looks at 3000 5/3500 11:45   stocks on every week we analyze and rank them the best opportunities so were new in the 11:52   block and retention when just how good we are to go sign up for newsletter and doesn't 11:57   don't miss out so we have to this week talk to set ticket refid=stpr