Southwest Going Nowhere
More reactionary writing on the future of SWA I suppose? No truth to any of it, I am sure........
More reactionary writing on the future of SWA I suppose? No truth to any of it, I am sure........
Southwest Going Nowhere
- Thread starter magsau
- Start date
Bad link you posted there. Nevertheless, there will always be someone--I mean beside you--predicting the death of SWA. Always has been, always will be. In the meantime, let's just wait until SWA actually loses money for just one quarter rather than predicting that losing quarter is just around the corner.
It seems from the beginning there has been at least one "airline industry expert"--aka, a reporter who can spell airline--predicting the imminent demise of SWA. "Business model can't work, won't work. No one wants to fly on a Greyhound bus in the sky. Passengers will not put up with no meal and no First Class. I give 'em six months."
I know your knickers are in a twist because their load factor was down in the same quarter they reported record profits, but posting this stuff doesn't change the fact that they posted record profits even though their load factor was down. Sad movie, starring your envy.
It seems from the beginning there has been at least one "airline industry expert"--aka, a reporter who can spell airline--predicting the imminent demise of SWA. "Business model can't work, won't work. No one wants to fly on a Greyhound bus in the sky. Passengers will not put up with no meal and no First Class. I give 'em six months."
I know your knickers are in a twist because their load factor was down in the same quarter they reported record profits, but posting this stuff doesn't change the fact that they posted record profits even though their load factor was down. Sad movie, starring your envy.
Uh, it's just a rehash of the exact same analyst report that was referenced in the thread entitled "Southwest business model" and which has 75-plus replies.
Unfortunately for Mr. McAdoo (the analyst who wrote the report), it appears he will soon be out of a job, as Prudential has decided to shutter the Prudential Equity Group.
wnbubbleboy
Veteran
Southwest Airlines stock might benefit more if the company diverted money aimed at growth to shareholders.
Shares of Southwest Airlines (nyse: LUV - news - people ) climbed 37 cents, or 2.6%, to $14.50, on Friday, after Morgan Stanley analyst William J. Greene said that Southwest stock has a potential for a breakout if management focuses less on growth. Greene upgraded the company to "equal-weight" from "underweight."
Who else might see an advantage in cutting back on growth? Bob McAdoo. Last week, the Prudential Equity analyst downgraded the stock to "underweight" from "overweight" because of what he considered over-expansion at the airlines. Southwest has expanded its fleet of aircraft at about 35 planes a year, even though it is losing money on newly added routes. (See: "Southwest Stock Drops On Downgrade")
Greene said the company's share price could benefit if the company slows its focus on capacity growth and instead uses the cash to accelerate investment in technology. He also said the company could increase share value by borrowing money and using the cash to reward shareholders. He said if the company moves aggressively to drive returns higher, its shares could hit $19.
http://www.forbes.com/markets/economy/2007...8markets29.html
Shares of Southwest Airlines (nyse: LUV - news - people ) climbed 37 cents, or 2.6%, to $14.50, on Friday, after Morgan Stanley analyst William J. Greene said that Southwest stock has a potential for a breakout if management focuses less on growth. Greene upgraded the company to "equal-weight" from "underweight."
Who else might see an advantage in cutting back on growth? Bob McAdoo. Last week, the Prudential Equity analyst downgraded the stock to "underweight" from "overweight" because of what he considered over-expansion at the airlines. Southwest has expanded its fleet of aircraft at about 35 planes a year, even though it is losing money on newly added routes. (See: "Southwest Stock Drops On Downgrade")
Greene said the company's share price could benefit if the company slows its focus on capacity growth and instead uses the cash to accelerate investment in technology. He also said the company could increase share value by borrowing money and using the cash to reward shareholders. He said if the company moves aggressively to drive returns higher, its shares could hit $19.
http://www.forbes.com/markets/economy/2007...8markets29.html
How assinine of a comment could this ANALyst make??? Borrow money and use the cash to "reward" shareholders??? Talk about robbing peter to pay paul. The shareholders have been rewarded with quarter after quarter of profits while virtually every other U.S. carrier has faced severe headwinds and financial turmoil, including my own, Delta. Tell Bob McAdoo to go piss up a rope.
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