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$13.05 0.20 (1.56%)
7/3/2008 1:05 PM

Southwest Airlines Co. (LUV)

CAPS Rating:
**

A major domestic airline that provides point-to-point, low-fare service.

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Total Players

800 Outperforms
224 Underperforms
 

All-Stars

166 Outperforms
77 Underperforms
 

Wall Street

7 Outperforms
1 Underperforms
 

Players bullish on LUV are also bullish on:

Players bearish on LUV are also bearish on:

Ticker Tags

Mid Cap (670), Regional Airlines (18), Best CEOs 2006 (31), Major Airlines (16), S&P 500 (482)
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Southwest Airlines Co. At A Glance

Current Price: $13.05
Last Trade Time: 7/3/2008 1:05 PM
Open: $0.00
Previous Close: $12.85
Daily Range: $12.68 - $13.31
52-Week Range: $11.02 - $16.96
Volume: 4,765,654
Market Cap: $9.40B
P/E Ratio: 16.47
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Stock Trends

LUV VS S&P 500 (SPY)

LUV 12 month chart vs. S&P

News & Discussion Boards

Other News Headlines for LUV

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Top Bull Pitch

Recs

1

Southwest Airlines Co. (LUV)

Avatar SchoolsInBob (92.59) Submitted: 6/05/08 12:26 PM

They've locked in fuel pricing and other airlines are raising prices and cancelling flights. All good news for LUV!

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Top Bear Pitch

Recs

3

Southwest Airlines Co. (LUV)

Avatar fonzriot (59.71) Submitted: 5/21/08 2:23 PM

I did a presentation on Southwest airlines for a class, and I found information that makes me believe they will underperform the S&P 500 within the next two to four years.

In the past, Southwest has posted profits while their competitors have been suffering. Their success comes from hedging oil...More

Replies: 3 | Reply | Permalink

CAPS Players

picks per page. CHANGE

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Recs

0

 (LUV)

Avatar nrkrishna (< 20) Submitted: 6/30/08 4:19 PM : Underperform Start Price: $12.91 LUV Score: -1.32

Oil is too high for airlines to sustain the cost

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Recs

0

 (LUV)

Avatar jdlech (< 20) Submitted: 6/28/08 5:32 AM : Outperform Start Price: $13.26 LUV Score: -0.32

Growth stock over the next two years.





Decision based upon one thing - fuel prices.


http://marketplace.publicradio.org/display/web/2008/06/27/so...





They have struck black gold, because they've hedged their fuel for several years into the future, at rates far, far below market rates. Southwest is paying the equivalent of $51 a barrel for oil. That's about one-third the current market rate. When you've locked in a fuel price that is lower than everybody else's, and when fuel is 40 to 50 percent of an airlines operating cost, you're at a terrific advantage. Enough of an advantage that Southwest can continue to offer low prices and add more routes at a time when others are announcing cuts. Locking in fuel prices takes two things: One, very forward-looking management. And the other, a strong balance sheet. And the airlines simply don't have either.





Several carriers have recently emerged from bankruptcy and don't have the funds to buy fuel in advance. Others have been burned in the past. In 2006, Delta lost over $100 million after it bought fuel hedges and the price of oil dropped. Still, this insurance policy has paid off well for Southwest. In the last 10 years, the company has saved $3.5 billion on fuel. I expect LUV to continue their speculat... ahem, hedging... and to continue using their competetive advantage to expand into areas from where high fuel costs are forcing other to retreat. This is effectively a moat since the other carriers cannot save money simply because they don't have the money it takes to do it.





Their recent cuts in flights is no cut at all, it's a reassignment of a limited number of airplanes to more profitable routs. They're also not afraid to raise rates, so while they have been expecting moderate growth for the past two years, their competitors have been withering away. Eventually, something will have to happen to save the airline industry from bankruptsy. But until then, Southwest Airlines and their long sighted management is among the strongest companies and is one of the most likely to survive.

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Recs

0

 (LUV)

Avatar dlee210 (43.23) Submitted: 6/26/08 3:41 PM : Underperform Start Price: $13.45 LUV Score: 1.28

They are cutting down many of their flights. Although they are opening new ones, some of the more popular flights are cutting down.

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Recs

0

 (LUV)

Avatar Alzo10 (98.11) Submitted: 6/25/08 5:34 PM : Outperform Start Price: $13.90 LUV Score: -2.85

Wait, did I just dare to recommend an airline stock? Why yes I did. LUV is the ONLY U.S. airline company that is not getting hammered because of rising fuel prices. On the contrary, most of their fuel input costs have been hedged at around $55 per barrel. Is this one fact enough to warrant an investment in LUV?

Yes because I believe it puts LUV in the drivers seat to gain market share and expand while the other airlines cut back services, raise costs, and other wise make their traveling experiences a whole lot worse.

As other airlines raise prices, LUV could hold prices constant and send numerous American, United, etc. fliers their way to save on costs. However, the same thing should happen if LUV raises ticket prices, provided they raise them at a slower rate than their competitors. Even while raising ticket prices, their prices will be relatively cheaper still compared to the competitors. LUV should benefit greatly as the airline industry implodes.

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Recs

0

 (LUV)

Avatar HallShadow (86.08) Submitted: 6/24/08 4:23 PM : Outperform Start Price: $13.84 LUV Score: -1.59

Because I'm nuts.

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Wall Street

Results 1 - 8 of 8  

picks per page. CHANGE Expand All Pitches

Top
Pick		Player NamePlayer RatingStart
Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackGaryBSmith < 20 04/11/08 Outperform 3W $12.65+3.20%-5.30%+8.50
TrackSchneider < 20 09/30/07 Outperform NS $14.78-11.73%-17.22%+5.49 Toggle the visibility of 60-Second Pitch and replies
TrackBRogers 69.30 09/30/07 Outperform NS $14.78-11.73%-17.22%+5.49 Toggle the visibility of 60-Second Pitch and replies
TrackMatrix 90.15 07/26/07 Outperform NS $15.96-18.22%-15.90%-2.32
TrackSoleil < 20 03/07/07 Outperform NS $15.08-13.48%-9.51%-3.97
TrackFortune2007 69.97 12/20/06 Outperform 1Y $15.43-15.41%-11.10%-4.31
TrackCreditSuiss 95.12 11/08/06 Outperform NS $15.24-14.36%-8.31%-6.04
TrackJimCramer 83.36 04/04/06 Underperform 3W $17.88-27.02%-3.24%+23.78

Results 1 - 8 of 8  

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