this year's 2006 stock picks by Fortune mag are up 25.7%. They just came out with their 2007 picks, and guess who's listed? LUV.

"It's an ideal time to buy one of the best-run companies and best-performing stocks of the past 30 years."

"Southwest's cost advantage over traditional carriers is still substantial"

"If we're right about the future of the U.S. airline industry, Southwest's profits and share price are likely going much, much higher"

The other 9 stocks picked by Fortune were
AIG
MO
COP
DO
GD
JOYG
MSFT
JPM
RSH

http://money.cnn.com/popups/2006/for...stocks/10.html

 

I posted earlier on LUV. I recently put some money into LUV and plan of putting more in to them after the market opens next week. IHMO, LUV is worth holding for the long / long term..Currently they only control 17% of the domestic market. Do you think they are happy with that? If you said yes, you're right...However, they will do one thing - continue to post a profit. A well leadered company...

-LAFF

 

The airline pilot's guide to making a small fortune.

Step 1. Start with a big fortune.
Step 2. Invest in airline stocks.

 

Southwest stock = FLAT!

In March 2003 I purchases LUV for about $12 a share. Sold it at $16 a share in December 2005. Made a whole $400. Yippee!!

At the same time I bought Boeing and Skywest. Made about $1500 from Skywest and $5500 from Boeing. Southwest is not a great stock. Check out this graph of their 5 year average.

http://moneycentral.msn.com/investor...&DisplayForm=1

I know everyone hates it when I mention it, but remember that Southwest is paying $36 a barrel for fuel, while all the other airlines are stuck paying $60 plus a barrel. FUEL IS AN AIRLINES LARGEST EXPENSE!!!
So be careful with that stock when 2009 rolls around!

 

Ryan,

Sorry you didn't make more on your purchase of LUV. You did make money though so you must have monitored the up and down cycle (flat is the right word)which has resulted the last five years. I to have invested in LUV and have been blessed with more than 400k, but I will tell you I am disappointed for all those who invested in LUV during this time period you mention.

I to believe the hedges have been a "profit" saver for SWA because of troubled airlines being subsidized in bankruptcy, etc. The only reason LUV has been flat is because of the subsidization of the rest of the industry! Bankruptcy, government loans, and flat out robbery from hard working employees has allowed "competition" to be a joke in th airline industry. If the market had been allowed to "correct" itself we would have fewer airlines and the remaining airlines (including SWA) would be able to increase their profit margins and an increase in their stock price would be a result of "fair" competition.

 

what does that mean?? Go to Vegas on SWA...better odds.

 

Alaska Airlines stock is on the move. However it still has a long way to go before it reaches its high of near $55 in 1999.

SkyHigh

 

I wonder if the guys over at Schwab sit around and talk about how they can fly airplanes. Oh wait....they are experts in investment. If you are not an expert or don't have the money to throw away an expert is best handling your money. If you are well studied, then invest your own. A fool and his money are soon parted. You guys are in the airlines and you are buying airline stock. Kind of sounds like putting your eggs......

 

I've been using Fortune's annual stock picks for the last 8 or 9 years. Some smart people over there.

As for LUV being a stock pick, I can see why. If the market continues to do well into 07, its price could easily hit $22,,,

for a respectable 40% return.

 

It could also "easily" hit $10.