Thread: SWA stock price
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Old 05-22-2007 | 11:42 PM
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HSLD
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From: B777
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Originally Posted by Riddler
Can someone offer some insight - why is SWA's stock fairly low (it's been below $20 since I've been watching it), yet it's a consistently profitable company? On the other hand, other less profitable airlines have higher stock prices.
Gary Kelly's remark during the 1st quarter earnings call that "...We are facing a 25-30% increase in costs and we’ve never faced that before..." has the analysts attention.

Southwest has always adapted to the market and there is no reason to think that they won't continue to find ways to stay profitable, it's their legacy after all! My guess is that the stock will stay flat until Southwest performs on the revenue side of the balance sheet instead of the historic cost side.
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