Originally Posted by
spirited
I think that relative mismatch would imply Short F9, Long NK - but us puny retail guys cannot short new IPOs, and I am not gonna put more eggs in the NK basket since I already into them for over 7 digits (future earnings)
SO - I am gonna do nothing.
Other could be inclined to buy SAVE instead of ULCC.
If F9 valuation holds, NK could take a nice 50% jump from 37 to 57! YAY....
If NK valuation holds, F9 could drop 1/3 from 19 to 12 - I hope not
I think the LCC & ULCC will do better over the next few years. and both will do better - Just NK has more headroom...
I think it’s both. Spirit has always been an undervalued stock/company for whatever reason. Allegiant and now Frontier seem to be a little overvalued. Never really understood why if we are larger than either of those companies, beat them or come very close in basically every metric and yet they’re still valued over us. Maybe it’s a debt issue...