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Good Run Jazzy

10 Nov

Jazz Air Income Fund (Jazz Air) (Halifax) reported net income of C$19.1 million in the third quarter. This net income of C$19.1 million compares to a larger C$25.3 million net profit in 2009, a decrease of C$6.2 million or 24.6%.

Earnings fell for Jazz Airlines due to the higher Canadian dollar as well.  With the small revenues they are generating compared to other airlines, I do not see a good forseeable continuation for growth in the already suffering industry of aviation.  After the release of earnings, JAZ.UN dropped a good 20%.  So I opted to step off the plane and let it fly off into the distance.

I originally bought JAZ.UN for 300 @ $2.75 when it was paying a monthly distribution of 8 cents.  That was short lived as they couldn’t sustain that distribution.  They lowered it to 5 cents, but they kept on paying it out every month.  Today, I sold out at $5.15, a 80% gain plus all the distributions I’ve collected over the past year and a bit. 

Good run Jazzy.  I still like you.