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

To: dj8000 who wrote (5090)	10/2/1998 1:57:00 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78519

dj8000, thanks for info. regarding regional airlines. Article was very bullish on outlook for those regional airline companies and their stocks. And it could happen too. For me, this looks like about where I entered my round trip on KLM. My bet is that I can take the trip again, but I'll pay more here for some more shares. (And maybe this next time I'll learn to take some profits.) KLM is hurting from the NW Airline strike, KLM's big exposure to Indonesia, the general avoidance and selling of airline stocks, the general drop in European ADR/NYSE stocks, the Am. Air/British Air etc. very strong code sharing/etc. partnership, the dollar strength (?), and KLM's high union component. Gee, I wouldn't want to even speculate on what other problems KLM could be having. Some positives though are that they dominate Amersterdam Airport, they have a strong and growing freight business, they are ordering new jets, and they pay a reasonable dividend. In my opinion they are likely to be around a while. Being that they are a Dutch company, my bet also includes some unmeasurable component that says they ought also to be good world traders (as some Dutch people are/were historically --- don't mean to stereotype any group), and so KLM management which deals in world markets will be sensitive and alert to capitalize on business opportunities wherever they might find them. This is not an argument for anybody to invest in KLM. Just that I'm comfortable with the investment. Successful with it--- no. I know nothing about the regional airlines the article mentioned. I'd be nervous that if they were doing really well, the majors would go after their lunches. But the risk maybe is that the economy tanks and maybe their stocks will too. I think (hope) that KLM has the where-with-all to last through the alleged recession that we are about to see. In any case, I'd guess your wait-and-see approach for now to these regionals is very reasonable. JMO, Paul.