The Best Transportation Stock To Buy Now, +18.8% Upside

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

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name is having the upside potential of 18.8% From the next slide you can

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see that the name is not all that unfamiliar its JetBlue Airways. The ticker symbol is JBLU.

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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.

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For 2012, operating margins and 12.7% and for and 2013 are tracking to be 13%, just slightly

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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.

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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

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value to ebitda is at 6.9. So overall we we have what I would say are some some low

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valuation metrics. The 23.4 P/E ratio maybe you could argue is a bit rich now but it is expected to

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come down a bit. The other valuation metrics which we just talked about are definitely

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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.

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so right now JetBlue that is trading closer to 62 five slowness or short and the 20 day

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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

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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

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and then meandered jump into seven a month later and then down to six dollars in July

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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

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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

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statements to begin with so you know Raleigh you might consider being in the middle attack

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works with fair finance statements that operating margins as we mentioned earlier is is flat

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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

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are expected to increase over the next year you know. Their fuel expenses have been coming

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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

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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

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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

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the start that JetBlue and its potentials getting out there and you overall are market

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outlook is still scares me to the past week were started season change the armor love

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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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