Bryan,
I've been a long time trader of LUV and if there seems to be one consistency its that the share price tumbles in the winter and picks up dramatically in the late summer when vacations and flying are on peoples' minds. (It was 28+ last July -- is it truly 25% worse off now? Not hardly)(By the way, where is ValuJet their competition in the Southeast . . For all practical purposes, Gone) I am tickled silly by Herb's statements of a poor fourth quarter and quite frankly by the low stock price. As the winter thaws and oil prices start to recede where will Southwest be? Firmly entrenched in Florida, developing a presence in the Northeast, and maintaining a huge, loyal base of customers in Texas, California and the Midwest. As long as the economy continues to hum along (which if anything its close to overheating) both business and vacation travelers will continue to pack LUV's planes. Now they can fly for peanuts to Florida (sounds attractive); or how bout a business trip to the Northeast. Look at last month's load factor. I swear the slightest turnabout in oil prices, some warm weather, and a continued strong economy and look out, this little low cost carrier with a niche carved out for itself will provide handsome rewards. They treat their employees well and they manage their costs. This will not go unnoticed. Save this message until August for proof. Remember, buy low, sell high. Unless war breaks out in the middle east, LUV has found its floor.
Good luck. |
