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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (36994)	3/16/2010 11:27:08 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78486

re RJET - the way I look at valuations, SKYW is cheaper due to lower leverage on an EV/EBITDA basis. RJET with a 200M$ market cap (equal to about the tangible book) and approx. 2B$ in EV value appears to be trading more like an option - if they make it, RJET could become a multibagger. I think overall SKYW looks a little cheaper and a more solid bet, or does anyone think that RJET has a competitive advantage over SKYW that needs to be taken into consideration? finance.yahoo.com

To: Paul Senior who wrote (36994)	3/17/2010 12:18:40 AM
From: Grantcw	Respond to of 78486

Hello Paul, As a business traveler, I've owned several Hotel Reits, but no airlines. That being said, I think RJET is really a bet on how well they can integrate recent acquisitions like Frontier and Midwest. I had actually never flown either of those airlines, but I had heard good things about both in comparison to other legacy airlines. I hadn't heard much about Republic itself. If they can integrate these acquisitions well, if business travel picks up, and if there's no airline price war, I could see RJET stock doing well. It's not one of the 5-10 individual stocks I hold right now, but I could see buying some shares if I stretched my holdings to more stocks. Thanks, cw