Volume Spike Investor

JetBlue (JBLU) hit a 52-week low of $3.90 on massive volume. Its period high is $11.99.

The company traded four million shares in the first five minutes of trading.

JBLU put out the pricing of its previously announced public offering of 5.5% Convertible Debentures due 2038. The offering size was increased from $160 million to $175 million, divided into two series of debentures, each in the amount of $87.5 million. The sale of the debentures is expected to close on June 4, 2008 subject to various customary closing conditions.

The market is not only concerned about dilution. Fuel prices may force some carriers to move into Chapter 11 later this year. If oil and gas stay high, there is no guarantee that JBLU or its larger peers will make it.

Douglas A. McIntyre