Non-tech Stock Swap:
FRNT--Frontier Air is a local air carrier out of Denver. It's share price is currently 3 3/8, and has been hugging the bottom since October, when the price dropped due to a negative earnings report that had followed 2 qtrs of profitability. It is currently not profitable. It is an expanding company with 8M+ shares, Book value of ~1.50, increasing revenues, owns 10 planes and is planning on adding 4 more within the next year. (It brings all those Californians to Colorado). It is currently in a brawl with United, the dominant carrier out of Denver, and has filed a complaint with government agency. It is a low fare carrier, and has been effected by the Value Jet concerns. There is significant competition in this industry as a whole, and w/in the
Denver area, in addition to United, there are 2 puddle-jumpers that also compete. There are rumors that Frontier is talking to merge with Maverick Air, that commutes to ski resorts.
It had a hi of 11 last year, and a strong support level at 7.
It may be premature to look at this company, but I base my suggestion on the following: 1) increased costs resulting from increased scrutiny of low fare carriers have been absorbed; 2) they are adding planes and routes; 3) they were effected by increasing gas prices and I don't thing gas prices will go much higher (I could be wrong); 4) we are heading into spring/summer, which always results in increased air traffic.
If this sounds familiar, it is. I just wish I could figure out how to copy. It never works for me.
And I got 100!!!
Best regards,
P. Webster |
