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Non-Tech : Hawaiin Airlines (Amex: HA)

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To: Bankceo who wrote (1)3/10/1998 1:37:00 PM
From: T-Lo Greens  Read Replies (3) of 72
 
Bankceo,

Yes you are correct in that the company experienced reduced RASMs and increased CASMs in the past quarter. The RASMs can be attributed to the economy in Hawaii, which is a direct result of the economic collapse in Japan. However I do not anticipate the Japanese recovery to be far off. CASMs increased due to fuel costs as stated in their Q4 report. Fuel costs are much lower now, and by locking in oil futures HA should be able to drastically lower CASMs.

I try to do as much research as possible, and I was recommending TWA in the $7 range back in October, and again at $10 in January. Hopefully my research will prove to be reliable once again with HA. I also worked with one of their VPs in the past, and I have strong faith in a management's ability to execute a turnaround.

At $3 1/2 there is not much of a downside, but the upside is almost limitless. We have a company here trading at .36 Price-Sales ratio.
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