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

To: Graham Osborn who wrote (55640)	7/7/2015 10:22:32 PM
From: E_K_S	Respond to of 78715

Re: Southwest Airlines Co. (LUV) FWIW, the Graham value for LUV is $27.86/share. EKS

To: Graham Osborn who wrote (55640)	7/8/2015 10:33:44 AM
From: gcrispin	1 Recommendation Recommended By bruwin Read Replies (1) \| Respond to of 78715

Thanks for the reply. I should clarify that I am looking at LUV as a GARP stock, which, many times are discussed on this board. I find it more instructive to look at the numbers for last three years as the factors affecting the airline sector have changed dramatically because of mergers, ancillary fees, and now oil. If you review the growth and profitability metrics since 2012 you will see a significant improvement in operating income, operating margin, net income, dividends, free cash flow, free cash flow per share, and share count. Return on assets, return on equity, and return on invested capital have also improved significantly in the same time frame. financials.morningstar.com This improvement still is not recognized by the market as reflected in the LUV's PEG ratio. nasdaq.com The latest PR indicates the high load factors. The question will be the decrease in PRASM but I suspect that this will be tempered by the decrease of jet fuel in the future. southwest.investorroom.com