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Strategies & Market Trends : Wanted: Long-Term "Strong Buy" Recommendations

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To: Larry S. who wrote (25)11/15/1996 12:30:00 AM
From: Philip H. Lee   of 54
 
Southwest Airlines (LUV; 24 3/8, +1/8)

LUV does have the lowest operating costs. They've maintained a cost leadership position for many years already, but I can't figure out why they stock hasn't performed. I used to hold LUV about 2 yrs ago, but sold it for a loss.

Despite the positive media coverage and all the praise from business schools & consultants, the stock has been stagnant. Maybe you can give me some details on their new hub expansion...Assuming LUV has expanded every year, is this new expansion more aggressive, or different in some way that will finally help the stock? I haven't researched LUV for a while, so I'm hoping you can shed some more light.

Philip
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