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Southwest Airlines

  • Take a Look At This Regional Airline

    By Vladimir Zernov - May 23, 2013 | Tickers: JBLU, RJET, LUV

    Most airline stocks have been rising this year. This is true for both major and regional airlines. Republic Airways (NASDAQ: RJET) is up more than 90% year-to-date. The stock has risen from low values, trading near $5 for the most of 2012. Does it still present value?

    Republic Airways Holdings is an airline holding company and owner of Chautauqua Airlines, Frontier Airlines, Republic Airlines and Shuttle America. It reports its more »

  • Southwest Airlines: A Bargain?

    By Adrian Campos - May 22, 2013 | Tickers: DAL, LUV, UAL, LCC

    In The Intelligent Investor, Benjamin Graham defined a bargain issue as one which, on the basis of facts established by analysis, appears to be worth considerably more than it is selling for. According to Graham, an issue is not a true "bargain" unless the indicated value is at least 50% more than the price. To identify a bargain issue, Graham proposed 2 tests: the first one being the "method of more »

  • Another Way to Invest in the Airline Industry

    By Robinson Roacho - May 22, 2013 | Tickers: AL, LUV, SAVE

    Airline-related companies have enjoyed investors’ favor this year. The iShares Dow Jones Transportation Average ETF (IYT) has outperformed the S&P 500 by rallying 20% on a year-to-date basis, while the S&P has rallied 15%, and it is trading in uncharted territories. In the airline industry, carriers and aircraft manufacturers capture most of the analysts’ attention. However, aircraft lessors play a key role in the operation of most airlines more »

  • Is It Time to Consider Investing in the Airlines?

    By Lior Cohen - May 21, 2013 | Tickers: DAL, LUV, UAL

    Despite the low profit margins, little revenue growth and near-perfect competition in the airline industry, shares of major airline companies have spiked in the past several months. Will the recent rally persist? Is it time to dip our toes into the airline industry and consider it a lucrative investment?

    Since the beginning of the year, shares of Delta Air Lines (NYSE: DAL) spiked by nearly 60%. Delta’s stock wasn more »

  • Debt Rating Warning Won't Stop This Airline's High

    By Tedra DeSue - May 20, 2013 | Tickers: DAL, JBLU, LUV, UAL

    To the delight of its shareholders, Southwest Airlines (NYSE: LUV) is quadrupling its quarterly dividend to $.04 a share and increasing its share repurchase authorization by 50% to $1.5 billion. While this is great news for shareholders, it could draw the ire of investors that hold any of the airline’s corporate debt.

    So concerned about the increases was Moody’s Investors Service that it released a note calling more »

  • Transportation Is Driving This ETF to New Heights

    By Jeff Stouffer - May 20, 2013 | Tickers: CAR, HTZ, LUV, XTN, LCC

    A key component of The Dow Theory is that transportation is an essential ingredient of an improving economy. Without the profitability in transportation companies to move goods to the consumer, an upturn in manufacturing output is not confirmed

    The SPDR S&P Transportation ETF (NYSEMKT: XTN) is an exchange-traded fund that holds 40 stocks of transportation companies. This ETF was brought to the market on Jan. 26, 2011, and the more »

  • This Airline Stock Doesn't Want To Be An Airline Stock

    By Alexander MacLennan - May 13, 2013 | Tickers: ALK, DAL, LUV

    Airlines go bankrupt.

    Airlines destroy investor cash.

    Never invest in an airline.

    It seems almost everyone learned this market logic at some point in their investing experience, often as one of the first rules of investing. For many, airline stocks have become synonymous with high risk short term investing designed to appease our inner gambler. But a recent announcement by Delta Air Lines (NYSE: DAL) is shaking up the traditional more »

  • Is this company flying higher?

    By Robinson Roacho - May 12, 2013 | Tickers: ALK, JBLU, LUV

    Most airline companies have outperformed the S&P 500 this year. JetBlue Airways Corp. (NASDAQ: JBLU) has rallied 18%, while the S&P 500 has rallied 15%. On a 12-month trailing term, the company has rallied 40%. The company has released its earnings report for 1Q2013, and more recently the April’s monthly traffic report. The analysis of these reports may provide a hint about the future of this company more »

  • These Regional Carriers May Climb Even Higher

    By Robinson Roacho - May 9, 2013 | Tickers: ALK, DAL, LUV

    Regional airlines have received investors’ favor so far this year. Alaska Air Group (NYSE: ALK) has more than doubled during the last 12 months, and it has rallied 56% year-to-date. Southwest Airlines (NYSE: LUV) has rallied 39% on a YTD basis. Meanwhile, the S&P 500 has rallied to all-time high levels. As the monthly traffic reports for April become available, a discussion about the performance of these companies may more »

  • Is This the Biggest Threat to the Major Airlines?

    By Mark Holder - May 8, 2013 | Tickers: ALK, JBLU, LUV, SAVE

    All of the benefits of consolidation undertaken by the major airlines to create three behemoths could unravel if new competitive threats enter the market. After decades of losses, new airlines entering the industry don’t appear as likely a threat as some of the established, more regional players aggressively expanding to fill the voids created by the mergers.

    Enter Spirit Airlines (NASDAQ: SAVE) as possibly the biggest threat to the more »

  • An Elite Hedge Fund Is Looking At These Stocks

    By Meena Krishnamsetty - May 6, 2013 | Tickers: BHI, FDX, LOW, LUV, TEL

    With the 13F season up and running, Greenhaven Associates has kept pace with some of their colleagues and has announced their stock holdings. Although at the top of the list we see the same company, Lowe’s (NYSE: LOW), a huge boost in Southwest Airlines (NYSE: LUV) catches the eye. The Dallas, TX based carrier has replaced Devon Energy in the top 5 of Greenhaven Associates for the fourth quarter more »

  • Airlines: Is It Different This Time?

    By Robert Hanley - May 3, 2013 | Tickers: ALK, LUV, LCC

    The airline sector is back in the black, with rising passenger loads caused by a rebound in both business and leisure travel.  However, the industry continues to be plagued by high fixed costs, unionized labor, and a tendency to create self-inflicted wounds through price wars.  Investors in the sector have often been left holding worthless securities during the inevitable business down cycle.  However, the industry has greatly consolidated over the more »

  • The American/US Airways Merger Solves Nothing

    By Nate Wooley - April 27, 2013 | Tickers: DAL, JBLU, LUV, UAL, LCC

    Consolidation in the airline industry is doing nothing to help companies succeed.

    Note I said nothing about surviving. They're doing that...but just barely. In fact, I don't think even that is a guarantee for the plethora of airlines that we have in the American market space right now. I think the likeliest – and most useful – thing to occur would be for several of these firms to just more »

  • Has Consolidation Leveled the Playing Field?

    By Ted Cooper - April 24, 2013 | Tickers: DAL, LUV, LCC

    The airline industry has been a net destroyer of shareholder wealth ever since the Wright brothers invented the airplane. The industry has only gone downhill since deregulation in the 1980s prompted destructive price wars that led to the regular occurrence of airlines seeking bankruptcy protection.

    Even amidst the ruthless competition, a few airlines have created some value for shareholders. The best-known example of a successful airline is that of Southwest more »

  • Airline Stocks Aren't Great Investments

    By Reuben Brewer - April 22, 2013 | Tickers: DAL, LUV, LCC

    Bloomberg recently ran an article extolling the virtues of airline stocks, which had an impressive run in the first quarter of this year. While one quarter's return is nice, the long-term picture for the industry still isn't very good. Conservative investors should shun the group, but momentum types might love it.

    Airlines

    According to Bloomberg, “U.S. airlines, shunned by Warren Buffett for almost 25 years, are now more »

  • This Airline Has Always Withstood Economic Storms Well

    By Shas Dey - April 22, 2013 | Tickers: DAL, JBLU, LUV

    Southwest Airlines (NYSE: LUV) is the largest low cost carrier in the United States. It is an outlier in the airlines industry in the sense that it has been relatively resistant to the economic downturn over the previous years. Even during the periods of slowing economy or rising fuel costs, the airline has reported profits. In the last year, its stock has been following an upward trend, giving returns of more »

  • 3 Spare Parts Plays to Rev Up Your Portfolio

    By John Bromels - April 22, 2013 | Tickers: F, HEI, LKQ, LUV, BA, TDG

    The razor and the blade

    One of the most profitable models for a company is the "razor-and-blade" model.  A company sells an expensive item that is seldom replaced -- like a razor -- and then makes most of its money off that purchase by selling a cheaper component part that costs far less but is replaced much more frequently -- like replacement blades.  This model doesn't just work for razors but for more »

  • Welcome To The Peanut Gallery

    By Alexander MacLennan - April 19, 2013 | Tickers: DAL, LUV, SAVE

    Remember the last time you took a flight in coach and enjoyed comfortable seats, plenty of legroom, and a genuinely pleasant experience overall? A lot of readers will be left wondering how anyone could enjoy this experience today with coach seats the way they are. If you’re one of those people, bad news; it’s about to get even worse.

    Make way for big spenders

    It used to be more »

  • Penny Dividends

    By Alexander MacLennan - April 19, 2013 | Tickers: BAC, C, LUV

    Most people today would think nothing of finding a penny on a sidewalk. Many would not even be bothered to pick it up--after all, it’s just a penny. But some very large corporations today expect their investors to care about the penny they show them every quarter. I am, of course, referring to the tiny dividends paid out by some companies in an effort to attract dividend-only investors and more »

  • Is It Time To Get Bullish On JetBlue?

    By Jeremiah Feliciano - April 19, 2013 | Tickers: JBLU, LUV, LCC

    Low-cost airlines have been gaining momentum as customers and corporate executives are trying to cut travel expenses. Exploiting that opportunity, JetBlue (NASDAQ: JBLU), which was founded in 2000, grew at an astonishing pace to establish itself as one of the most successful low-cost airlines in the U.S.

    The company has done several experiments with destinations and routes. Fortunately, it's showing signs of success in the fiercely competitive, low-cost more »

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