Forbes: SWA Going Nowhere
06-03-2007 | 09:54 AM
#11
Gets Weekends Off
Joined: Aug 2006
Posts: 1,385
Likes: 0
From: 737 Right
Bob Crandall does not call it fuel hedging. He calls it a gamble. He noted recently that many airlines have lost a lot of money on fuel hedges in the past. You are only "brilliant" if you guess right, just like picking a stock. Having said that, fuel hedging is not their magic formula. It is their incredibly low employee to airplane ratio. It keeps their costs untouchable even with high wages.
And exactly what is it in this business that's a "sure thing"?
If you're not willing to gamble, this is the wrong business.
06-03-2007 | 10:19 AM
#12
Gets Weekends Off
Joined: Aug 2006
Posts: 1,385
Likes: 0
From: 737 Right
06-03-2007 | 11:50 AM
#13
Line Holder
Joined: Mar 2007
Posts: 76
Likes: 0
From: SWA Newbie
Apparently, he still owns a pawnshop in Buffalo, but I found no mention of his stock picking prowess or his knowledge of the airline industry.
174px-Mcadoo.jpg
06-03-2007 | 01:35 PM
#15
Gets Weekends Off
Joined: Apr 2006
Posts: 2,750
Likes: 0
From: 737 CA
Perhaps. I was just relaying the opinion of one of the best former airline ceo's in the business. I think everyone is making too big a deal on the fuel hedge thing. You can lose just as easily as you can win.
Last edited by jsled; 06-03-2007 at 03:03 PM.
06-03-2007 | 01:41 PM
#16
Gets all holidays off
Joined: Feb 2005
Posts: 431
Likes: 0
From: Retired UPS 767 Captain, SDF Z
Not working? But still making $$
Dream over for Southwest?
Prudential Equity Group downgraded the stock, saying the company's business model "does not appear to be working anymore."
Foremost among Southwest's problems is over-expansion: the airline continues to swell its fleet at the rate of about 35 planes per year, even though it is losing money on many of its recently added routes. McAdoo added that Southwest lacks direction, and lowered his target price from $22 to $16, and dropped second quarter estimates to 26 cents from 41 cents as well. "Lacking some new direction, we believe LUV shares are going nowhere," McAdoo says.
What is going on? Has reality set in?
Prudential Equity Group downgraded the stock, saying the company's business model "does not appear to be working anymore."
Foremost among Southwest's problems is over-expansion: the airline continues to swell its fleet at the rate of about 35 planes per year, even though it is losing money on many of its recently added routes. McAdoo added that Southwest lacks direction, and lowered his target price from $22 to $16, and dropped second quarter estimates to 26 cents from 41 cents as well. "Lacking some new direction, we believe LUV shares are going nowhere," McAdoo says.
What is going on? Has reality set in?
What I like to see is the company's "long range" market development philosophy. Some markets may not be big money makers right now, but as the airline continues with it's methodical, pre-planned expansion, with competitive costs per seat mile traveled, I think the airlines future is bright. Personally, I think LUV stock is at a very reasonable price right now, and if I had to own an airline stock, it would be on my short list.
This analysts opinion is a typical short-term, instant gratification one, typical of today's MTV generation.
06-03-2007 | 02:26 PM
#17
Gets Weekends Off
Joined: Aug 2006
Posts: 3,931
Likes: 0
Dream over for Southwest?
Prudential Equity Group downgraded the stock, saying the company's business model "does not appear to be working anymore."
Bob McAdoo lowered his rating to "Underweight" from "Overweight" and reduced his price target to $16 per share from $22.
Foremost among Southwest's problems is over-expansion: the airline continues to swell its fleet at the rate of about 35 planes per year, even though it is losing money on many of its recently added routes. McAdoo added that Southwest lacks direction, and lowered his target price from $22 to $16, and dropped second quarter estimates to 26 cents from 41 cents as well. "Lacking some new direction, we believe LUV shares are going nowhere," McAdoo says.
What is going on? Has reality set in?
Your opinions please
Prudential Equity Group downgraded the stock, saying the company's business model "does not appear to be working anymore."
Bob McAdoo lowered his rating to "Underweight" from "Overweight" and reduced his price target to $16 per share from $22.
Foremost among Southwest's problems is over-expansion: the airline continues to swell its fleet at the rate of about 35 planes per year, even though it is losing money on many of its recently added routes. McAdoo added that Southwest lacks direction, and lowered his target price from $22 to $16, and dropped second quarter estimates to 26 cents from 41 cents as well. "Lacking some new direction, we believe LUV shares are going nowhere," McAdoo says.
What is going on? Has reality set in?
Your opinions please
Good Luck Gman...
06-03-2007 | 03:57 PM
#18
Gets Weekends Off
Joined: Oct 2005
Posts: 227
Likes: 0
From: ERJ CAPT
Not only that, but their two sides to the profit equation. Expenses vs. Income. Low cost are great but if you don't have a decent yield from your product the end result is the same.
The biggest danger to the Legacy carriers is their high costs!
The biggest danger for the LCC carriers is their Low yields!
Onfinal
06-03-2007 | 06:01 PM
#20
Gets Weekends Off
Joined: Feb 2006
Posts: 6,230
Likes: 62
From: B-737NG preferably in first class with a glass of champagne and caviar
Perhaps old Stevie Boy should take a look in the mirror. Where is he going? Nowhere out of Somerset NJ... that's where unless he uses daddy's legacy to take him there.
Thread
Thread Starter
Forum
Replies
Last Post
