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Non-Tech : NORTHWEST AIRLINES TREND IS GOING TO CHANGE

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To: Golden Bear who wrote (8)10/7/1998 7:37:00 PM
From: Golden Bear  Read Replies (1) of 10
 
Lost a lot of shareholder value since mid-Sept. Where will the bottom be? Seems nobody likes airlines now: look at U.A.L., their price earnings ratio is under 6.00, yet this earnings report should be outstanding. They have no labor clouds hanging over their head.

In comparison, Northwest's best-case earnings estimate yields an 11.7 PE at current share prices. The low end is a big loss for the year, the mean is -.02 per share for the year.

So maybe this is why we have more sellers than buyers. If we apply a 6.00 PE to Northwest's "best-case" earnings scenario, We are looking at a $10.50 NWAC price.

Where is the bottom?
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